TRANSMITTAL LETTER FOR THE BOARD MEETING OF JUNE 20, 2019
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
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Authority to amend lease agreement dated June 11, 2013, between the District and the City of Blue Island on 137.64 acres of District real estate located north and south of the Cal-Sag Channel between Kedzie Avenue and Fay’s Point in Blue Island, Illinois to: (1) expand Blue Island’s leasehold to include the District’s SEPA Station 3 site and Cal-Sag Channel Parcel 15.09 and 2) allow Blue Island to host various community events and maintain community farms and a parking lot. Consideration shall be a nominal fee of $10.00, plus 25% of net revenues generated by Blue Island’s use of its leasehold (As Revised)(Deferred from the June 6, 2019 Board Meeting)
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Dear Sir:
The City of Blue Island (“Blue Island”) leases 137.64 acres of District real estate located between Kedzie Avenue and Fay’s Point in Blue Island, Illinois; Cal-Sag Channel Parcels 14.01-14.02, 14.04-14.09, 14.11, 14.13, 15.03-15.07, 15.10 and 16.03 for public recreational use, including construction and maintenance of the Cal-Sag Trail. The lease commenced June 11, 2013, and expires May 31, 2052, and was subject to a $10.00 nominal fee.
Blue Island now requests to amend its lease to expand its leasehold boundaries to include the District’s SEPA Station 3 site (“SEPA 3”) and Cal-Sag Channel Parcel 15.09. Blue Island will not be leasing SEPA 3’s pump building, aeration pools and system, which will remain the District’s responsibility. Blue Island currently maintains the SEPA 3 grounds pursuant to a maintenance agreement with the District. Parcel 15.09 is a vacant parking lot.
Blue Island also requests to amend its lease to allow it to host various community events. It is anticipated that most community events will be on SEPA 3 and Cal-Sag Channel Parcel 14.05. The events include Blue Island’s annual Chicago River Day, Independence Day fireworks display, and Chicago Southland Dragon Boat Festival; a series of live music concerts from May through September; and “Drivin’ the Dixie”, a classic and collectable car rally that features a vintage baseball game, food and music. This year’s Dragon Boat Festival is being conducted by the Blue Island Park District pursuant to a permit authorized by the Board of Commissioners on April 4, 2019.
Blue Island further requests to amend its lease to use Cal-Sag Channel Parcel 15.09 for parking and its entire leasehold, except SEPA 3 and Parcel 15.09, for the additional use of community farming. Blue Island’s proposed community farming program entails use of individual raised-bed plots that will be made available to both residents and non-residents of Blue Island for growing crops and gardens. Blue Island will maintain/retain control and management of the site at all times, but will assign plots to growers. To participate, growers must register with Blue Island. The sale or commercial use of any crops or vegetables grown at the leasehold will be prohibited. Initially, Blue Island will only be making a few of its leasehold parcels available for community farming use. If there is public demand for it, the program will expand to other parcels as well.
The District’s technical departments have reviewed these requests and have no objections thereto. A nominal fee of $10.00 plus 25% of the net revenues generated by Blue Island’s use of its leasehold is recommended as is customary for a governmental agency using District land for a public purpose.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize an amendment to the lease agreement dated June 11, 2013, between the District and the City of Blue Island on 137.64 acres of District real estate located north and south of the Cal-Sag Channel between Kedzie Avenue and Fay’s Point in Blue Island, Illinois to: (1) expand Blue Island’s leasehold to include the District’s SEPA Station 3 site and Cal-Sag Channel Parcel 15.09 and 2) allow Blue Island to host various community events and maintain community farms and a parking lot. Consideration shall be a nominal fee of $10.00, plus 25% of net revenues generated by Blue Island’s use of its leasehold.
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 said lease amendment agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:CMM:vp
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 June 20, 2019
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