TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 1, 2015
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
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Consent to sub-sublease between Matt Rogatz and Doctors Management Group, LLC on an approximately 21,700 sq. ft. portion of the leasehold at 3350 S. Kedzie Avenue in Chicago, Illinois; Main Channel Parcel 41.03. Consideration shall be a $2,500 document preparation fee
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Dear Sir:
On August 2, 1951, the District entered into a lease agreement with WHFC, Inc. on 6.2 acres of District real estate located at 3350 S. Kedzie Avenue in Chicago, Illinois and known as Main Channel Parcel 41.03 (“Lease”). The Lease commenced July 15, 1951, and expires July 14, 2050. The tenants operate two radio stations. The Lease was assigned from time to time, with the last assignment on November 1, 1979, from Globe Broadcasting Company to LaSalle National Bank, as Trustee under Trust Agreement dated October 11, 1979, and known as Trust No. 101868. The beneficiaries of the trust are Midway Broadcasting Company (“Midway”) and Migala Communications Corporation (“Migala”). Midway operates radio station WRLL and Migala operates radio station WCEV. The leasehold is improved with an office building, a parking lot and a radio transmission tower. The current annual rent is $22,214.40.
On December 28, 2005, the District consented to a sublease from Midway to Matt Rogatz (“Rogatz”). Under the sublease agreement, Rogatz subleases the land underlying the office building and the parking lot adjacent to the office building which totals approximately 21,700 sq. ft. Rogatz owns the office building which he purchased from Midway and operates an industrial real estate business. Rogatz pays 8% of the total rent due under the Lease which is $1,777.16.
Rogatz has requested to sub-sublease his office building to Doctors Management Group, LLC (“Doctors”) along with the parking lot for five (5) years. The Doctors propose to use the building for office space for its medical practice. Such use is in conformity with the permitted uses under the Lease. Both Midway & Migala have consented to the proposed sub-sublease to the Doctors. Because the Lease predates the District’s sublease fee policy of sharing 50% of the sub-lease fee, the District will not share in the sub-lease fees Rogatz receives from Doctors.
It is recommended that the Executive Director recommend to the Board of Commissioners that it consent to the sub-sublease between Matt Rogatz and Doctors Management Group, LLC on an approximately 21,700 sq. ft. portion of the leasehold at 3350 S. Kedzie Avenue in Chicago, Illinois; Main Channel Parcel 41.03. Consideration shall be a $2,500.00 document preparation fee.
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 the consent to the sub-sublease agreement after it is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM:MLD: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 October 1, 2015
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