TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 18, 2018
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to grant to the Morton Grove Niles Water Commission: (1) an 18-month, 17,843 sq. ft. temporary construction easement and (2) a 70-year, 38,517 sq. ft. non-exclusive easement to construct, install, operate, maintain, repair and remove three (3) subterranean 30-inch water mains on part of North Shore Channel Parcels 3.02, 3.03 and 3.05 and beneath the North Shore Channel in Evanston and Skokie, Illinois. Consideration shall be a fee of $45,500.00 for the temporary construction easement and an initial annual fee of $65,479.00 for the 70-year easement
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Dear Sir:
The Morton Grove Niles Water Commission (“MGNWC”) has requested: (1) an 18-month, 17,843 sq. ft. temporary construction easement and (2) a 70-year, 38,517 sq. ft. non-exclusive easement to construct, install, operate, maintain, repair and remove three (3) subterranean 30-inch water mains. One 30-inch water main will run north/south, parallel to McCormick Boulevard, beneath North Shore Channel Parcels 3.02 and 3.05. The two other 30-inch water mains will run east/west beneath North Shore Channel Parcels 3.03 and 3.05 and beneath the North Shore Channel itself. Parcel 3.05 is located in Skokie, Illinois and Parcels 3.02 and 3.03 are located in Evanston, Illinois. The two east/west water mains will connect to a pump station to be constructed on private property that MGNWC is in the process of purchasing, located immediately east of Parcel 3.03 at Wade Street. The water mains will allow MGNWC to purchase its potable water from the City of Evanston, then sell it to its residents.
The District’s technical departments have reviewed MGNWC’s request and have no objections thereto. It is recommended that a fee of $45,500.00 be assessed for the 18-month temporary construction easement and an initial annual fee of $65,479.00 for the 70-year easement, both of which represent 10% of the appraised fair market value. The fee is based upon the District’s policy to assess the annual rent based on the fair market value when the easement is generating revenue. Because MGNWC will derive revenue under this easement, an initial annual easement fee of 10% is recommended rather than a nominal fee. Also, since Parcels 3.02 and 3.03 are leased to the City of Evanston, and Parcel 3.05 is leased to the Village of Skokie, the consents of each municipality is required. MGNWC has represented that it will be holding a public meeting on the project through the City of Evanston so that it can be fully vetted by the public.
It is requested that the Executive Director recommend to the Board of Commissioners that it grant to the Morton Grove Niles Water Commission: (1) an 18-month, 17,843 sq. ft. temporary construction easement and (2) a 70-year, 38,517 sq. ft. non-exclusive easement to construct, install, operate, maintain, repair and remove three (3) subterranean 30-inch water mains on part of North Shore Channel Parcels 3.02, 3.03 and 3.05 and beneath the North Shore Channel in Evanston and Skokie, Illinois. Consideration shall be a fee of $45,500.00 for the temporary construction easement and an initial annual fee of $65,479.00 for the 70-year easement.
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 easement agreements on behalf of the District after they are approved by the General Counsel as to form and legality.
Requested Susan T. Morakalis, 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 January 18, 2018
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