TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 15, 2018
COMMITTEE ON PROCUREMENT
David St. Pierre, Executive Director
Title
Authorization to accept initial annual rental bid for Contract 17-367-11 Proposal to Lease for seven (7) years, 1.38 acres of District real estate located east of the North Shore Channel and north and south of the CTA Yellow Line tracks in Skokie, Illinois; part of North Shore Channel Parcel 6.14 from Builder’s Asphalt, LLC in the amount of $46,500.00
Body
Dear Sir:
At its meeting of November 16, 2017, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise Contract 17-367-11 Proposal to Lease for seven (7) years, 1.38 acres of District real estate located east of the North Shore Channel and north and south of the CTA Yellow Line tracks in Skokie, Illinois; part of North Shore Channel Parcel 6.14. The minimum acceptable annual rental bid was established at $46,500.00.
One bid was received for the subject proposal and was opened on December 19, 2017. The bid was received from Builder’s Asphalt, LLC (“Builder’s”) for a minimum initial annual rental bid of $46,500.00 (10% of the appraised fair market value). The site is currently vacant. Builder’s leases 6.04 acres of adjacent District real estate located at 3216 Oakton Street in Skokie, Illinois and known as North Shore Channel Parcels 6.06 and 6.11 under a lease that commenced July 1, 2014, and expires June 30, 2024 (“Lease”). Builder’s uses this land under the Lease for operating an asphalt plant and for purposes incident thereto. The annual rent is $173,400.00. Builder’s proposes to use the subject site for recycling concrete and stockpiling materials used in its asphalt business.
The Finance Department has reviewed Builder’s 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 17-367-11 Proposal to Lease for seven (7) years, 1.38 acres of District real estate located east of the North Shore Channel and north and south of the CTA Yellow Line tracks in Skokie, Illinois; part of North Shore Channel Parcel 6.14 from Builder’s Asphalt, LLC in the amount of $46,500.00.
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 General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:CMM:PS: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 February 15, 2018
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