TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 15, 2018
COMMITTEE ON PROCUREMENT
John P. Murray, Acting Executive Director
Title
Authorization to accept initial annual rental bid for Contract 18-365-11 Proposal to Lease for sixty (60) years, 8.61 acres of District real estate located west of Cicero Avenue and south of the Cal-Sag Channel in Crestwood, Illinois; Cal-Sag Channel Parcel 11.04 (western and middle portions) from the Village of Crestwood in the amount of $169,861.00
Body
Dear Sir:
On June 21, 2018, the Board of Commissioners (“Board”) authorized the advertisement of Contract 18-363-11 for the public tender of bids a sixty 60-year lease on 8.61 acres of District real estate located west of Cicero Avenue and south of the Cal-Sag Channel in Crestwood, Illinois; Cal-Sag Channel Parcel 11.04 (western and middle portions) for a minimum initial annual rental bid of $283,100.00. The minimum bid represented 10% of the highest of the three appraised values, pursuant to Board policy. The bid opening was on July 31, 2018, and no bids were received. As no bids were received, on September 6, 2018, the Board authorized the Director of Procurement and Materials Management to advertise Contract 18-365-11 for public tender of bids of the subject lease for a minimum acceptable initial annual rental bid of $169,860.00 (6% of the appraised fair market value).
One bid was received for the subject proposal and was opened on October 16, 2018. The bid was received from the Village of Crestwood (“Crestwood”) for an initial annual rental bid of $169,861.00 (6% of the appraised fair market value). The site is currently vacant. Crestwood proposes to develop the site for mixed use commercial development. Crestwood leases the eastern 7-acre portion of Parcel 11.04 for mixed use retail development under a 60-year lease that commenced September 15, 2017 and expires September 14, 2077. The annual rent is $158,000.00. Crestwood also leases a 6-acre portion of Parcel 11.04 under a public recreational lease that also commenced September 15, 2017, and expires September 14, 2077. The rent is a $10.00 nominal fee. This lease contains a 30’ wide setback adjacent to the Cal-Sag Channel and running the length of Parcel 11.04, on which Crestwood will construct a public walking trail.
The Finance Department has reviewed Crestwood’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 Acting Executive Director recommend to the Board of Commissioners that it accept the initial annual rental bid for Contract 18-365-11 Proposal to Lease for sixty (60) years, 8.61 acres of District real estate located west of Cicero Avenue and south of the Cal-Sag Channel in Crestwood, Illinois; Cal-Sag Channel Parcel 11.04 (western and middle portions) from the Village of Crestwood in the amount of $169,861.00.
It is also requested that the Acting 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:vp
Recommended, Darlene LoCascio, Director of Procurement and Materials Management
Recommended, John P. Murray, Acting 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 November 15, 2018
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