TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 3, 2015
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to advertise Contract 16-360-11 for public tender of bids a 39-year lease on 9.20 +/- acres of District real estate located at 15185 Main Street in Lemont, Illinois; Main Channel Parcel 24.02 and part of Parcel 24.10. The minimum initial annual rental bid shall be established at $291,500.00
Body
Dear Sir:
On May 21, 2015, the Board of Commissioners authorized the commencement of statutory procedures to lease the subject District real estate located at 15185 Main Street in Lemont, Illinois; Main Channel Parcel 24.02 and part of Parcel 24.10. The site is currently occupied by KA Steel Chemicals Inc. (“KA Steel”) under a lease that expires June 30, 2016. KA Steel uses the site to operate a chemical manufacturing and bulk storage facility with barge loading and unloading facilities. The lead applicant, KA Steel, has requested a new lease to continue its current operations.
Pursuant to statute, the lead applicant, KA Steel, submitted two appraisals and the Law Department obtained a third appraisal as follows:
Appraiser Value
CohnReznick L.L.P.
Patricia L. McGarr, MAI $2,700,000.00
(District’s appraiser)
Madison Appraisal, LLC
Joseph J. Calvanico, MAI $2,700,000.00
Renzi & Associates
Neal J. Renzi, MAI $2,915,000.00
It is recommended that the subject real estate’s fair market value be based upon the highest of the three appraisals and established at $2,915,000.00 and that the minimum initial annual rental bid be established at 10% of the property’s fair market value or $291,500.00.
It is further recommended that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of the following orders:
1. The real estate consisting of 9.20+/- acres located at 15185 Main Street in Lemont, Illinois, and known as Main Channel Parcel 24.02 and part of Parcel 24.10 depicted in the exhibit attached hereto be declared surplus and not needed for the District’s corporate purposes and available for lease as set forth herein.
2. The fair market value of the 9.20 +/- acres of real estate be established at $2,915,000.00 and that the minimum initial annual rental be established at 10% thereof or $291,500.00.
3. The Director of Procurement and Materials Management be authorized to advertise said 9.20 +/- acres of real estate as available for lease for a term of thirty-nine (39) years at the minimum initial annual rental bid of $291,500.00 and report the results of the bidding to the Board of Commissioners for further action.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the Director of Procurement and Materials Management to advertise Contract 16-360-11 for public tender of bids a 39-year lease on 9.20 +/- acres of District real estate located at 15185 Main Street in Lemont, Illinois; Main Channel Parcel 24.02 and Part of Parcel 24.10. The minimum initial annual rental bid shall be established at $291,500.00
Requested, Ronald M. Hill, General Counsel, RMH:SM:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Submitted by, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 3, 2015
Attachment