TRANSMITTAL LETTER F OR BOARD MEETING OF OCTOBER 6, 2016
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
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Authority to enter into a Termination of Lease Agreement with Chicago Title Land Trust Company, as Trustee Under Trust Agreement 3253, and G & I VII VK Land Western, LLC, Beneficiary Under Trust Agreement 3253 of its lease agreement on 1.234 acres of District real estate located north of the Main Channel and east of Western Avenue in Chicago, Illinois and known as Main Channel Parcel 43.02. Consideration shall be $118,163.36
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Dear Sir:
Chicago Title Land Trust Company, as Trustee Under Trust Agreement 3253, successor in interest to Amalgamated Bank of Chicago, as Trustee under Trust Agreement 3253 (“Chicago Title”), currently leases the subject 1.234 acres of District real estate under a 74-year lease agreement that commenced December 19, 1977, and is set to expire June 30, 2051. The current annual rent under the lease is $2,400.00 and the site is improved as a parking lot. The beneficiary under the Chicago Title Trust is currently G & I VII VK Land Western, LLC, successor to Dearborn Wholesale Grocers, the former beneficiary of the trust (hereinafter collectively referred to as “Dearborn”). Dearborn owned adjacent property to operate its food warehousing business and used the District’s 1.234 acre parcel for parking throughout the term of the lease. Dearborn recently sold its warehouse business and no longer needs the District’s 1.234 acre site for parking. The new owner of the adjacent site has not requested to use the District’s land at this location.
Chicago Title has therefore requested to terminate its lease since there is no longer a need for the parking lot. Under the lease, if the agreement is terminated prior to the expiration date, Chicago Title must pay to the District the balance of the rental due for the entire term of the lease. The rental due under the remaining term of the lease is $118,163.36.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the District to enter into a Termination of Lease Agreement with Chicago Title Land Trust Company, as Trustee Under Trust Agreement 3253, and G & I VII VK Land Western, LLC, Beneficiary Under Trust Agreement 3253, of its lease agreement on 1.234 acres of District real estate located north of the Main Channel and east of Western Avenue in Chicago, Illinois and known as Main Channel Parcel 43.02. Consideration shall be $118,163.36.
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 Termination of Lease Agreement and any other surrender or termination documents after they are approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM: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 6, 2016
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