TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 3, 2020
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to advertise Contract 20-361-11 for public tender of bids a 25-year lease on 12.91± acres of District real estate located north of the Main Channel between Central and Laramie Avenues in Stickney, Illinois; Main Channel Parcel 39.02. The minimum initial annual rental bid shall be established at $393,500.00
Body
Dear Sir:
On December 19, 2019, the Board of Commissioners (“Board”) authorized the commencement of statutory procedures to lease the subject District real estate located north of the Main Channel between Central and Laramie Avenues in Stickney, Illinois; Main Channel Parcel 39.02, for a 25-year term. The lead applicant, Z-Trucking, Inc. (“Applicant”), has requested to lease the site to install and operate tractor-trailer truck parking stations. Parcel 39.02 is currently vacant.
Pursuant to statute, the Applicant submitted two appraisals and the Law Department obtained a third appraisal as follows:
Appraiser Value
Valucentric $3,935,000.00
Gregory Nold, MAI
Appraisal Associates $3,900,000.00
William I. Enright, MAI
(District’s Appraiser)
The Metron Group, Inc. $3,655,000.00
Peter Poulos, 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 $3,935,000.00, and that the minimum initial annual rental bid be established at 10% of the property’s fair market value or $393,500.00.
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 12.91± acres of District real estate located north of the Main Channel between Central and Laramie Avenues in Stickney, Illinois; Main Channel Parcel 39.02, 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 12.91± acres of real estate be established at $3,935,000.00, and that the minimum initial annual rental be established at 10% thereof or $393,500.00.
3. Director of Procurement and Materials Management be authorized to advertise said 12.91± acres of real estate as available for lease for a term of 25 years at the minimum initial annual rental bid of $393,500.00, 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 20-361-11 for public tender of bids a 25-year lease on 12.91± acres of District real estate located north of the Main Channel between Central and Laramie Avenues in Stickney, Illinois; Main Channel Parcel 39.02. The minimum initial annual rental bid shall be established at $393,500.00.
Requested, Susan T. Morakalis, General Counsel, STM:EMA:JAW: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 September 3, 2020
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