TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 15, 2015
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to amend lease agreement dated January 1, 1954, with the Chicago Transit Authority on 9.66 acres of District real estate located north of the O'Brien Water Reclamation Plant and east and west of McCormick Boulevard in Skokie; North Shore Channel Parcels 6.13 and 6.14, extending the lease expiration date from October 31, 2015, to December 31, 2015. Consideration shall be $10.00
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Dear Sir:
The Chicago Transit Authority ("CTA") leases 9.66 acres of District real estate under a lease that commenced January 1, 1955, and, as extended, expires October 31, 2015, to operate a rapid transit railroad line currently known as the "Yellow Line" for public transportation purposes ("Lease"). The leasehold is located along the northern boundary of the O'Brien Water Reclamation Plant in Skokie, Illinois, east and west of McCormick Boulevard and known as North Shore Channel Parcels 6.13 and 6.14. The annual rent under the Lease through June 30, 2015 was $35,675.00. The rent under the lease extension from July 1, 2015, through October 31, 2015, was a nominal fee of $10.00.
The Lease was originally set to expire on December 31, 2014. Prior to the 2014 expiration, the CTA indicated that it anticipated leasing less than the current 9.66 acres that it leases under the Lease, but needed additional time to review its land use needs under a new lease. On December 4, 2014, the Board of Commissioners authorized a six-month extension of the Lease to June 30, 2015 to allow the CTA the additional time it requested. At its June 18, 2015, meeting, the Board granted a 3-month extension of the Lease to allow for repairs to be made to the railroad line. At its September 3, 2015, meeting, the Board granted a 1-month extension of the Lease to further allow for repairs to be made to the railroad line. The CTA has now requested a further extension of its Lease to December 31, 2015.
Once the new lease boundaries are determined, the CTA will seek authority to pay back rent based on the new appraised value as of November 1, 2015.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize an amendment to the lease agreement dated January 1, 1954, with the Chicago Transit Authority on 9.66 acres of District real estate located north of the O'Brien Water Reclamation Plant and east and west of McCormick Boulevard in Skokie; North Shore Channel Parcels 6.13 and 6.14, extending the lease expiration date from October 31, 2015, to December 31, 2015. Consideration shall be $10.00.
It is further requested that the Executive Director recommend to the Board of Commissioners that the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute said lease amendment agreement after same 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 October 15, 2015
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