TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 10, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to advertise Contract 19-362-11 for public tender of bids a 39-year lease on 19.373+ acres of District real estate located east of Pulaski Road and north of the Cal-Sag Channel in Alsip, Illinois; Cal-Sag Channel Parcel 13.04 (western portion). The minimum initial annual rental bid shall be established at $50,000.00
Body
Dear Sir:
On September 6, 2018, the Board of Commissioners authorized the commencement of statutory procedures to lease the subject District real estate located east of Pulaski Road and north of the Cal-Sag Channel in Alsip, Illinois; Cal-Sag Channel Parcel 13.04 (western portion) for a 39-year term. The site is currently vacant. The lead applicant, Alsip MiniMill, LLC (“Alsip MiniMill”), has requested to lease the site for parking trucks in conjunction with its adjacent paper mill business.
Pursuant to statute, the lead applicant, Alsip MiniMill, has submitted two appraisals and the Law Department obtained a third appraisal as follows:
Appraiser Value
Appraisal Associates
William I. Enright, MAI $250,000.00
(District’s Appraiser)
Hilco Real Estate Appraisal, LLC $500,000.00
John C. Satter, MAI
Pahroo Appraisal & Consultancy, LLC $465,000.00
Steven M. Shockley, MAI
It is recommended that the subject real estate’s fair market value be based upon the highest of the three appraisals and established at $500,000.00, and that the minimum initial annual rental bid be established at 10% of the property’s fair market value or $50,000.00.
It is further recommended that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of the following orders:
1. The real estate comprising 19.373+ acres of District real estate located east of Pulaski Road and north of the Cal-Sag Channel in Alsip, Illinois; Cal-Sag Channel Parcel 13.04 (western portion), as depicted in the exhibit attached hereto, be declared surplus and not needed for the District’s corporate purposes and available for lease as set forth herein.
2. The fair market value of the 19.373+ acres of real estate be established at $500,000.00, and that the minimum initial annual rental be established at 10% thereof or $50,000.00.
3. The Director of Procurement and Materials Management be authorized to advertise said 19.373+ acres of real estate as available for lease for a term of 39-years at the minimum initial annual rental bid of $50,000.00, and report the results of the bidding to the Board of Commissioners for further action.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the Director of Procurement and Materials Management to advertise Contract 19-362-11 for public tender of bids a 39-year lease on 19.373+ acres of District real estate located east of Pulaski Road and north of the Cal-Sag Channel in Alsip, Illinois; Cal-Sag Channel Parcel 13.04 (western portion). The minimum initial annual rental bid shall be established at $50,000.00.
Requested, Susan T. Morakalis, General Counsel, STM:CMM:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
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 January 10, 2019
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