TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 4, 2019
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to issue a 2-year permit to Peoples Gas Light & Coke Company to use a 0.165± acre portion of Main Channel Parcel 42.17 located near 31st Street and Western Avenue in Chicago, Illinois as a construction staging area and for dewatering a Peoples Gas utility tunnel. Consideration shall be an annual fee of $5,000.00
Body
Dear Sir:
On August 30, 1962, the District granted a perpetual, 10’ x 334’ non-exclusive easement to Peoples Gas Light & Coke Company (“Peoples”) to install, construct, operate, maintain, repair and replace a 36” natural gas pipeline and utility tunnel within Main Channel Parcel 42.17 (“Parcel 42.17”) and under the Main Channel near 31st Street and Western Avenue in Chicago, Illinois. Parcel 42.17 is located south of the Main Channel. The pipeline traverses non-District land north of the Main Channel.
Peoples will be performing repairs to its 36” pipeline and utility tunnel. Accordingly, Peoples has requested a 2-year permit to use a 0.165± acre portion of Parcel 42.17 as a construction staging area to store vehicles and equipment such as hoists, ventilation equipment, generator pumps and other miscellaneous equipment during the repair project, and for dewatering its tunnel by connecting a hose from the tunnel to a District manhole located within the requested permit area. In conjunction with this permit request, Peoples will also obtain a One-Time Discharge Permit from the Monitoring and Research Department.
Parcel 42.17 is leased to the Chicago Park District (“Park District”) for operation of Richard J. Daley Park under a lease that commenced September 5, 2002 and expires September 4, 2041. This permit is therefore subject to the written consent of the Park District.
The District’s technical departments have reviewed this request and have no objections thereto. An annual permit fee in the amount of $5,000.00 is recommended, as the pro-rata share of 10% of the fair market value of the land would yield a fee less than the District's minimum permit fee of $5,000.00.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of a 2-year permit to Peoples Gas Light & Coke Company to use a 0.165± acre portion of Main Channel Parcel 42.17 located near 31st Street and Western Avenue in Chicago, Illinois as a construction staging area and for dewatering a Peoples Gas utility tunnel. Consideration shall be an annual fee of $5,000.00.
It is also requested that the Executive Director recommend to the Board of Commissioners that the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute said permit agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:CMM:npe
Recommended, Brian A. Perkovich, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for April 4, 2019
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