TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 18, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authorization to accept initial annual rental bid for Contract 18-366-11 Proposal to Lease for ten (10) years, approximately 1.90 acres of District real estate located north of the Cal-Sag Channel and west of Archer Avenue in Lemont, Illinois; Cal-Sag Channel Parcel 1.03, from Route 83 Properties II, LLC, in the amount of $57,600.00
Body
Dear Sir:
At its meeting of November 1, 2018, the Board of Commissioners authorized the advertisement of Contract 18-366-11 for the public tender of bids a ten (10) year lease on approximately 1.90 acres of District real estate located north of the Cal-Sag Channel and west of Archer Avenue in Lemont, Illinois; Cal-Sag Channel Parcel 1.03 (“Parcel 1.03”) for a minimum initial annual rental bid of $55,800.00. The minimum bid represented 10% of the highest of the three appraised values, pursuant to Board policy.
One bid was received for the subject proposal and was opened on December 11, 2018. The bid was received from Route 83 Properties II, LLC (“Route 83”) for an initial annual rental bid of $57,600.00 (10.32% of the appraised fair market value). The site is currently vacant. Route 83 proposes to use the site for storage of construction equipment and offloading barges in conjunction with its construction business on privately owned adjacent land.
The Finance Department has reviewed Route 83’s financial and company background information and has reported that it demonstrates the ability to pay its annual rent. However, because Route 83 has been operating for only two years, it is recommended that the equivalent of two years of annual rent be submitted as a security deposit.
It is requested that the Executive Director recommend to the Board of Commissioners that it accept the initial annual rental bid for Contract 18-366-11 Proposal to Lease for ten (10) years, approximately 1.90 acres of District real estate located north of the Cal-Sag Channel and west of Archer Avenue in Lemont, Illinois; Cal-Sag Channel Parcel 1.03, from Route 83 Properties II, LLC, in the amount of $57,600.00.
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:MLD:vp
Recommended, Darlene LoCascio, Director of Procurement and Materials Management
Recommended, Brian A. Perkovich, 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 April 18, 2019
Attachment