TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 1, 2017
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authorization to accept initial annual rental bid for Contract 17-364-12 (Re-Bid) Proposal to Lease for 39-years 7.43 acres of District real estate located at 4100 South Laramie Avenue in Stickney, Illinois; Main Channel Parcel 39.07 from Koppers Inc. in the amount of $260,000.00
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Dear Sir:
At its meeting of February 2, 2017, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise a contract proposal to lease for 39-years 7.43 acres of District real estate located at 4100 South Laramie Avenue in Stickney, Illinois, and known as Main Channel Parcel 39.07. The minimum acceptable annual rental bid was established at $260,000.00.
A bid was received for the subject proposal and was opened on April 11, 2017, from Koppers Inc. (“Koppers”) for a minimum initial annual rental bid of $260,000.00 (10% of the appraised fair market value). Koppers currently leases the site under a lease that expires August 14, 2018, and proposes to continue using the site for the same purposes under its current lease of storing and distributing oil and petroleum products in conjunction with its operations at its adjacent site.
The Finance Department has reviewed Koppers’ financial and company background information and has reported that it demonstrates the ability to meet its financial obligations under the new proposed lease.
It is requested that the Executive Director recommend to the Board of Commissioners that it accept the initial annual rental bid for Contract 17-364-12 (Re-Bid) Proposal to Lease for 39-years 7.43 acres of District real estate located at 4100 South Laramie Avenue in Stickney, Illinois; Main Channel Parcel 39.07 from Koppers Inc. in the amount of $260,000.00.
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 Acting General Counsel as to form and legality.
Requested, Susan T. Morakalis, Acting General Counsel, STM:CMM:vp
Recommended, Darlene 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 June 1, 2017
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