TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 20, 2016
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to issue a twelve (12) month permit to ExxonMobil Oil Corporation on approximately 4.46 acres of District real estate located east of Cicero Avenue and north of the Main Channel in Chicago, Illinois; Main Channel Parcel 40.02. Consideration shall be $87,425.00
Body
Dear Sir:
The Peoples Gas Light and Coke Company (“Peoples Gas”) leases Main Channel Parcel 40.02 (“Parcel 40.02”) located east of Cicero Avenue and north of the Main Channel in Chicago, Illinois under a 99-year lease that commenced in 1917 and expires October 31, 2016. The annual rent is $1,059.25. The parcel is currently improved with a barge dock and contains natural gas pipelines.
On March 30, 1944, Peoples Gas subleased Parcel 40.02 to Socony-Vacuum Oil Company, predecessor to ExxonMobil Oil Corporation (“ExxonMobil”). ExxonMobil uses Parcel 40.02 for barge loading and unloading in conjunction with its adjacent bulk oil distribution center.
ExxonMobil has requested to continue using Parcel 40.02 upon expiration of Peoples Gas’ lease and has therefore requested a long-term lease thereon. A twelve (12) month permit is therefore recommended to allow ExxonMobil to continue its operations during the statutory leasing process.
The District’s technical departments have no objections to ExxonMobil’s request for an interim permit. A permit fee of $87,425.00 is recommended as such represents 10% of the appraised fair market value of the site.
It is recommended that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of a twelve (12) month permit to ExxonMobil Oil Corporation on approximately 4.46 acres of District real estate located east of Cicero Avenue and north of the Main Channel in Chicago, Illinois and known as Main Channel Parcel 40.02. Consideration shall be $87,425.00.
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 permit after same is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM:MLD: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 20, 2016
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