TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 3, 2015
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to enter into a 39-year lease with Fulton County on approximately 440 acres of District real estate located at 18773 N. Conservation Road in Canton, Fulton County, Illinois. Consideration shall be a nominal fee of $10.00 plus 25% of the net profits derived from the leasehold
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Dear Sir:
Since 1972, Fulton County (“County”) has occupied under a series of 5-year permits approximately 440 acres of District real estate located on the former Wier Farm in Fulton County, Illinois for public fishing, camping and recreational purposes and to allow the site manager to use the south pump station as a workshop. The current permit expires December 31, 2019. The annual fee under the permit is $10.00.
The County has now requested a 39-year lease on the subject 440 acres so that it can obtain state and federal grants to make certain improvements to the camping area. Obtaining such funds and making investments necessitates a long-term lease.
The technical departments have no objections to leasing the approximately 440 acres to the County.
A nominal fee of $10.00 plus 25% of the net profits is recommended as is customary under leases to municipal and governmental entities generating revenues under their leases. The “annual revenue” will allow for deductions such as certain operating expenses, capital improvement expenditures and bond repayments, if any.
Under 70 Illinois Compiled Statutes 2605/8c(11), the lease would be terminable upon the service of a one-year notice if the property becomes essential to the District's corporate needs.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the District to enter into a 39-year lease with Fulton County on approximately 440 acres of District real estate located at 18773 N. Conservation Road in Canton, Fulton County, Illinois. Consideration shall be a nominal fee of $10.00 plus 25% of the net profits derived from the leasehold.
It is also requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the Chairman of the Committee on Finance and the Clerk to execute said lease agreement after it is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM:MM:vp
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Mariyana T. Spyropoulos, Chairman Committee on Real Estate Development
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for September 3, 2015
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