TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 2, 2009
COMMITTEE ON REAL ESTATE
Mr. Richard Lanyon, Executive Director
Title
Authority to issue a 5-month permit extension to SPI Petroleum, LLC to continue to use approximately 3.78 acres of District land located at 4801 South Harlem Avenue in Forest View, Cook County, Illinois; Main Channel Parcel 37.11, Consideration shall be $52,938.00
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Dear Sir:
SPI Petroleum, LLC (SPI) is the permittee under a permit on 3.78 acres of District land located at 4801 South Harlem Avenue, north of the Main Channel and east of Harlem Avenue, in Forest View, Illinois (a/k/a Main Channel Atlas Parcel 37.11). The permitted use is for the operation of a trucking and bulk liquid storage warehouse terminal. The site was formerly operated by Energy Transport, Inc. under a lease that expired in 2006. SPI bought out and acquired Energy Transport, Inc. in 2006, and upon expiration of the Energy Transport lease, a permit was issued to SPI to allow it to occupy the site during the bidding process for a new lease.
Subsequent to the lease expiration, the site was made available for leasing through the public bidding process. The District accepted bids to lease this site, and the sole bid was submitted by former tenant Energy Transport, Inc. The Board rejected that bid since it was not a viable corporate entity nor had any assets. SPI then requested to continue to occupy the site in order to obtain a new lease for the site and recently submitted 2 fair market value appraisals. The District is obtaining a third appraisal.
It is requested that SPI continue to occupy the site for 5 months pending completion of the statutory leasing process. A permit fee of $52,938.00 is recommended based upon a pro rata calculation of the fair market value of the parcel plus a 5% inflation rate.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the issuance of a 5-month permit extension to SPI Petroleum, LLC for the use of approximately 3.78 acres of District land located at 4801 South Harlem Avenue in Forest View, Cook County, Illinois; Main Channel Parcel 37.11. Consideration shall be $52,938.00.
It is further requested that the Executive Director recommend to the Board of Commissioners that it authorize the Chairman of the Committee on Finance and the Clerk to execute said permit extension agreement once approved by the General Counsel as to form and legality.
Requested, Frederick M. Feldman, General Counsel, FMF:CL:JCC:nm
Recommended, Richard Lanyon, Executive Director
Respectfully Submitted, Terrence J. O’Brien, 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 April 2, 2009
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