TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 4, 2016
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to commence statutory procedures to sell an approximately 73-acre parcel of District real estate located at 820 W. 138th Street in Riverdale, Illinois
Body
Dear Sir:
HMB405, Inc. has requested to purchase an approximately 73-acre parcel of District real estate located at 820 W. 138th Street in Riverdale, Illinois (“Riverdale Site”).
The District purchased the Riverdale Site in 1967 as part of its obligations as local sponsor under the Calumet-Sag Navigation Project. The Cal-Sag Navigation Project was approved by the U.S. Congress at that time and it authorized the U.S. Army Corps of Engineers (“Corps”) to widen and dredge the Cal-Sag Channel, improve portions of the Little Calumet River and that portion of the Calumet River between Calumet Harbor and Lake Calumet.
Maintenance of the waterways involved periodic dredging and depositing of the silt and dredging upon maintenance areas. As local sponsor, the District was statutorily obligated to furnish, free of cost to the Corps, all lands, easements, rights-of-way and soil disposal areas necessary for the work and for subsequent maintenance by the Corps. One of the maintenance areas purchased by the District as part of its local sponsor obligations was the Riverdale Site. When acquired, the Riverdale Site was a worked out clay pit.
The Village of Riverdale has made a longstanding request that the District sell or make available for lease the Riverdale Site for mixed use development. The District has been reluctant to sell this parcel of land because it was purchased and held in reserve pursuant to its continuing obligation under the Cal-Sag Navigation Project to provide maintenance areas for the Corps, if and when the Cal-Sag Channel, Little Calumet River or Calumet River improvement work was undertaken.
Until recently, the Corps was unwilling or unable to project for the District when or if the Riverdale Site would be required for use. Because of the lack of information, the District was reluctant to sell the parcel. The Corps has now provided the District with information that allows for an informed decision to be made with respect to the future disposition of the Riverdale Site. The Corps has indicated that this parcel is not sufficient for its maintenance of the waterways and has indicated that it is no longer required by the Corps. The District is therefore statutorily required to sell the land if it is not needed for its own corporate purposes.
The technical departments have reviewed the request and indicated that they do not foresee any need for the Riverdale site for any corporate purpose. Accordingly, the technical departments have no objections to the proposed sale.
The sale will be upon competitive bid as required by statute. Before advertising the property for sale the Board will be provided the appraised value of the property and requested therefrom to establish a minimum acceptable bid.
It is also requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the General Counsel to commence statutory procedures to sell an approximately 73-acre parcel of District real estate located at 820 W. 138th Street in Riverdale, Illinois, upon competitive bid and upon the terms and conditions set forth above.
Requested, Ronald M. Hill, General Counsel, RMH:STM:BJD:vp
Recomm4ended, 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 February 4, 2016
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