TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 15, 2017
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
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Consent to an assignment of lease and sublease from I.A. Chicago Lincoln, LLC and I.A. Chicago Lincoln II, LLC to TCB-Lincoln Village, LLC and TCB LV GL, LLC of 2.4 acres of District real estate located at Lincoln Avenue and the North Shore Channel in Chicago, Illinois; North Shore Channel Parcel 8.05. Consideration shall be a document preparation fee of $5,000.00
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Dear Sir:
On March 21, 2002, the Board of Commissioners (“Board”) authorized the District to enter into a lease with BGP Lincoln Village, LLC, on 2.4 acres of District real estate located at Lincoln Avenue and the North Shore Channel in Chicago, Illinois, and known as North Shore Channel Parcel 8.05. The lease expires in 2063. The annual rent is $267,000.00. The Lease comprises of a 1-acre parking area used by patrons of the adjacent Lincoln Village Shopping Center and a 1.4 acre area improved with a senior citizen assisted living facility. On September 7, 2006, the lease was assigned to I.A. Chicago Lincoln, LLC (“IA Chicago”) and I.A. Chicago Lincoln II, LLC (“I.A. Chicago 2”), where the Board approved IA Chicago operating the 1-acre parking lot area and IA Chicago 2 subleasing the 1.4 acre area containing the assisted living facility to Lincoln Village LLC (“Lincoln Village”).
IA Chicago and IA Chicago 2 have entered into a contract for the sale of the shopping center and senior citizen assisted living facility to TCB-Lincoln Village, LLC (“TCB-Lincoln”) and TCB LV GL, LLC (“TCB-LV”). In connection with the sale, IA Chicago and IA Chicago 2 have requested the District’s consent to assign the lease to TCB-Lincoln and TCB-LV, and the sublease to TCB-LV. TCB-Lincoln and TCB-LV intend to use Parcel 8.05 for the same purposes as did IA Chicago and IA Chicago 2, with TCB-Lincoln leasing the 1-acre parking lot area, and TCB-LV leasing the 1.4 acre assisted living facility portion, which will continue to be sublet to Lincoln Village. The District’s consent is subject to TCB-Lincoln and TCB-LV posting an additional security deposit with the District in the amount of $267,000.00 to ensure compliance with the lease provisions. The District’s Finance Department has reviewed their financial and company background information and reports that they have the financial resources to meet the annual rent obligation under the lease.
It is requested that the Executive Director recommend to the Board of Commissioners that it consent to an assignment of lease and sublease from I.A. Chicago Lincoln, LLC and I.A. Chicago Lincoln II, LLC to TCB-Lincoln Village, LLC and TCB LV GL, LLC of 2.4 acres of District real estate located at Lincoln Avenue and the North Shore Channel in Chicago, Illinois; North Shore Channel Parcel 8.05. Consideration shall be a document preparation fee of $5,000.00.
It is further 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 consent to assignment of lease on behalf of the District after it is approved by the Acting General Counsel as to form and legality.
Requested, Susan T. Morakalis, Acting General Counsel, STM:CMM:MLD:vp
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 for June 15, 2017
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