TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 20, 2020
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 28,800 sq. ft. portion of North Shore Channel Parcels 8.01 and 8.03 located between Lincoln and Peterson Avenues in Chicago, Illinois as construction staging areas and to dewater a utility tunnel. Consideration shall be an annual fee of $9,600.00
Body
Dear Sir:
On June 20, 1946, the District granted a perpetual easement to Peoples Gas Light & Coke Company (“Peoples Gas”) to install, construct, operate, maintain, repair and replace a 48” natural gas pipeline on a 25’ x 258’ portion of North Shore Channel Parcel 8.01 located along the eastern bank of the North Shore Channel between Lincoln and Peterson Avenues, and a utility tunnel located beneath the North Shore Channel north of Peterson Avenue. Peoples Gas constructed the 48” natural gas pipeline, utility tunnel and appurtenant access shafts on its easement premises. Subsequently, in 1971, Peoples Gas replaced the 48” gas pipeline with a 42” pipeline.
Peoples Gas will be performing repairs to its 42” pipeline and utility tunnel. Accordingly, Peoples Gas has requested a 2-year permit to use a 28,800 sq. ft. portion of North Shore Channel Parcels 8.01 and 8.03 as construction staging areas to store vehicles and equipment such as hoists, ventilation equipment and generator pumps and to dewater a utility tunnel by connecting a hose from the tunnel to a District manhole located within the permit area. Peoples Gas will also obtain a One-Time Discharge Permit Request from the District’s Monitoring and Research Department for the dewatering operations.
North Shore Channel Parcel 8.01 is leased to the Chicago Park District (“Park District”) under a lease that commenced April 12, 1961 and expires April 11, 2061. North Shore Channel Parcel 8.03 is leased to Bais Yakov-Yeshiva Tefereth (“Bais Yakov”) under a lease that commenced May 1, 1955 and expires April 30, 2054. This permit is therefore subject to the written consent of the Park District and Bais Yakov.
The District’s technical departments have reviewed this request and have no objections thereto. A permit fee of $9,600.00 is recommended, which represents 10% of the appraised fair market value of the permit premises
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 28,800 sq. ft. portion of North Shore Channel Parcels 8.01 and 8.03 located between Lincoln and Peterson Avenues in Chicago, Illinois as construction staging areas and to dewater a utility tunnel. Consideration shall be an annual fee of $9,600.00.
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:EMA: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 February 20, 2020
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