TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 1, 2017
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to amend lease agreement dated July 10, 2008, between the District and Trinity Christian College to: (1) surrender an 8.2 acre portion of its 65.18 acre leasehold on Cal-Sag Channel Parcel 10.03 in Alsip, Illinois, and (2) reduce the annual rental amount from $56,576.00 to $49,458.00. Consideration shall be a $5,000.00 document preparation fee
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Dear Sir:
In 2008, the District entered into a lease with Trinity Christian College (“Trinity”) on 78.33 acres of District real estate under a 50-year lease that commenced July 15, 2008, and expires June 30, 2058. The leasehold is located south of the Cal-Sag Channel east of Ridgeland Avenue in Alsip, Illinois, known as Cal-Sag Channel Parcel 10.03 (western Portion). The lease is for the purpose of operating athletic fields and a running path as they relate to the operation of Trinity’s academic and physical education programs. Trinity’s annual rent is $56,576.00. Additionally, Trinity pays 10% of the gross revenues generated by its handling charges related to acceptance of fill on the leasehold.
At its meeting of April 18, 2013, the Board of Commissioners (“Board”) authorized an amendment of Trinity’s lease allowing it to surrender a 13.15 acre section of the eastern portion of the leasehold to the Alsip Park District (“Park District”) to lease and develop it into the Calumet-Sag Trail (“Trail”), thereby reducing Trinity’s leasehold to 65.18 acres.
Trinity is now requesting to surrender an additional 8.2 acre section along the Cal-Sag Channel to the Park District, thereby reducing the acreage from 65.18 acres to 56.98 acres. Trinity has constructed the Trail along this section of its leasehold, and the Park District has requested to operate and maintain the Trail. An amendment to add this 8.2 acre section to the Park District’s leasehold is being addressed under a companion transmittal letter on today’s agenda. The surrender of such acreage will result in a reduction of Trinity’s annual rent from $56,576.00 to $49,458.00. The District's technical departments have reviewed Trinity’s request and have no objections thereto.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize an amendment to the lease agreement dated July 10, 2008, between the District and Trinity Christian College to: (1) surrender an 8.2 acre portion of its 65.18 acre leasehold on Cal-Sag Channel Parcel 10.03 in Alsip, Illinois, and (2) reduce the annual rental amount from $56,576.00 to $49,458.00. Consideration shall be a $5,000.00 document preparation.
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 2nd Lease Amendment Agreement and any other surrender documents after they are approved by the Acting General Counsel as to form and legality.
Requested, Susan T. Morakalis, Acting General Counsel, STM:CMM:npe
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, David J. Walsh, 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 June 1, 2017
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