TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 19, 2017
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Consent to an assignment of lease from Ashland LLC to Valvoline Inc. and Valvoline LLC of 0.60 acres of District real estate located along the northwesterly bank of the Main Channel, east of Willow Springs Road, in Willow Springs, Illinois; Main Channel Atlas Parcel 30.05. Consideration shall be a document preparation fee of $5,000.00
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Dear Sir:
Ashland LLC, leases 0.60 acres of District real estate located along the northwesterly bank of the Main Channel, east of Willow Springs Road, in Willow Springs, Illinois and known as Main Channel Parcel 30.05 (“Parcel 30.05”). Ashland LLC operates a barge loading/unloading and dock facility and an underground pipeline for the transportation of petroleum products that crosses the Des Plaines River. The lease commenced in 1994 and expires in 2033. Ashland LLC’s annual rent is $10,641.46. Ashland LLC’s lease allows it to assign the lease subject to the District’s written consent.
In September 2016, Ashland LLC separated into two independent, publicly traded companies, Ashland Inc. and Valvoline Inc., with Valvoline Inc. obtaining Ashland LLC’s rights to the lease of Parcel 30.05. In connection with the separation, Valvoline Inc. is requesting the District’s consent to the assignment of the lease from Ashland LLC to Valvoline Inc. and Valvoline LLC, its operating company. Valvoline Inc. and Valvoline LLC intend to use the leased premises as co-tenants for the same purposes as did Ashland LLC.
The District’s Finance Department has reviewed Valvoline Inc. and Valvoline LLC’s 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 from Ashland LLC to Valvoline Inc. and Valvoline LLC of 0.60 acres of District real estate located along the northwesterly bank of the Main Channel, east of Willow Springs Road, in Willow Springs, Illinois; Main Channel Parcel 30.05. Consideration shall be a document preparation fee of $5,000.00.
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 said Consent to Assignment of Lease Agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:CMM:NPE: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 October 19, 2017
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