TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 1, 2016
COMMITTEE ON PROCUREMENT
David St. Pierre, Executive Director
Title
Authority to advertise Contract 17-361-11 for public tender of bids for a five (5) year lease on approximately 3 acres of District real estate located at 4100 West 41st Street in Forest View, Illinois; Main Channel Parcel 38.11. The minimum initial annual rental bid shall be established at $85,000.00
Body
Dear Sir:
On October 20, 2016, the Board of Commissioners authorized the commencement of statutory procedures to lease approximately 3 acres of District real estate located at 4100 West 41st Street in Forest View, Illinois, and known as Main Channel Parcel 38.11. The site is currently occupied by W.E. O’Neil Construction Company (“O’Neil”) pursuant to a lease that commenced May 1, 2014, and expires April 30, 2017. O’Neil seeks to continue leasing the property for the purpose of storing and maintaining construction equipment.
Pursuant to statute, the lead applicant, O’Neil submitted two appraisals and the Law Department obtained a third appraisal as follows:
Appraiser Value
Appraisal Associates
William J. Enright, MAI $850,000.00
(District’s Appraiser)
The Metron Group $310,000.00
Peter Poulos, MAI
Borysow Appraisal $375,000.00
Paul Borysow, MAI
It is recommended that the subject real estate's fair market value be based upon the highest of the three appraisals and established at $850,000.00, and that the minimum initial annual rental bid be established at 10% of the property's fair market value or $85,000.00.
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 approximately 3 acres of District real estate located at 4100 West 41st Street in Forest View, Illinois, and known as Main Channel Parcel 38.11, as 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 approximate 3 acres of real estate be established at $850,000.00, and that the minimum initial annual rental be established at 10% thereof or $85,000.00.
3. The Director of Procurement and Materials Management be authorized to advertise said approximate 3 acres of real estate as available for lease for a term of five (5) years at the minimum initial annual rental bid of $85,000.00, 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 17-361-11 for public tender of bids for a five (5) year lease on approximately 3 acres of District real estate located at 4100 West 41st Street in Forest View, Illinois; Main Channel Parcel 38.11. The minimum initial annual rental bid shall be established at $85,000.00.
Requested, Ronald M. Hill, General Counsel, RMH:SM:CMM:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
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 December 1, 2016
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