TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 21, 2013
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to grant a 25-year easement on a 1.2-arce area to Commonwealth Edison Company ("ComEd") for continued operation, maintenance, renewal and removal of two underground tunnels and head houses for each tunnel underneath the Main Channel midway between Central Park Avenue and Pulaski Road, Chicago, Illinois, to the Crawford Generating Station property on the north side of the Main Channel, along with electric transformers, poles, towers, insulators and concrete slab foundations on Main Channel Parcel 41.09. Consideration shall be an initial fee of $12,071.50
Body
Dear Sir:
On April 1, 1923, the District granted ComEd a 30-year lease for the operation, maintenance, renewal and removal of two underground tunnels and head houses for each tunnel underneath the Main Channel midway between Central Park Avenue and Pulaski Road in Chicago, Illinois. In addition, ComEd was granted the use of Main Channel Parcel 41.09 for electric transformers, poles, towers, insulators and concrete slabs. The lease contained an option to extend the term for an additional 30 years, which was exercised by ComEd. On April 1, 1983, the District granted ComEd an easement for the continued use of District property. ComEd's facilities on District land are integral parts of the Crawford Generating Station located north of the Main Channel and east of Pulaski Road. The current easement expires on March 31, 2013. The current annual easement fee is $10,137.66. Attached is an aerial photograph showing the subject easement area.
The easement area totals approximately 48,286 square feet. The initial annual fee of $12,071.50 represents 10% of the easement area's fair market value of $2.50 per sq. ft. based upon an appraisal of a nearby comparable site.
The District's technical departments have reviewed ComEd's request for a renewal of the easement at the subject location and have no objections thereto.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the grant of a 25-year easement on a 1.2-acre area to Commonwealth Edison Company for continued operation, maintenance, renewal and removal of two underground tunnels and head houses for each tunnel extending midway between Central Park Avenue and Pulaski Road in Chicago, Illinois, underneath the Main Channel to the Crawford Generating Station on the north side of the Main Channel along with electric transformers, poles, towers, insulators and concrete slab foundations on Main Channel Parcel 41.09. Consideration shall be an initial fee of $12,071.50.
It is further 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 easement agreement after same is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM:MLD:ldl
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Mariyana T. Spyropoulos, Chairman Committee on Real Estate Development
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for February 21, 2013
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