TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 18, 2016
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authorization to accept initial annual rental bid for Contract 15-364-11 Proposal to Lease for 39-years 22.81 acres of District real estate located at 16050 Des Plaines River Road in Lemont, Illinois; Main Channel Parcel 23.01 from Ozinga Ready Mix Concrete, Inc., in the amount of $302,750.00
Body
Dear Sir:
At its meeting of October 15, 2015, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise Contract 15-364-11 Proposal to Lease for 39-years 22.81 acres of District real estate located at 16050 Des Plaines River Road in Lemont, Illinois; Main Channel Parcel 23.01. The minimum acceptable annual rental bid was established at $215,000.00.
One bid was received for the subject proposal and was opened on December 1, 2015. The bid was received from Ozinga Ready Mix Concrete, Inc. (“Ozinga”) for a minimum initial annual rental bid of $302,750.00 (14.0814% of the appraised fair market value). Ozinga’s proposed use of the site under a lease is for ready mix concrete production, barge fleeting and servicing, trans-loading, storage of bulk materials, construction and agricultural commodities, and port development.
The Finance Department has reviewed the information submitted by Ozinga and has reported that historically it has demonstrated the ability to meet its financial obligations.
It is requested that the Executive Director recommend to the Board of Commissioners that it accept the initial annual rental bid for Contract 15-364-11 Proposal to Lease for 39-years 22.81 acres of District real estate located at 16050 Des Plaines River Road in Lemont, Illinois; Main Channel Parcel 23.01 from Ozinga Ready Mix Concrete, Inc., in the amount of $302,750.00.
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 lease agreement after it has been approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:SM:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, 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 February 18, 2016
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