TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 16, 2013
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to issue an 8-month permit extension to W.E. O'Neil Construction Company on 3 acres of District real estate located at 4100 West 41st Street in Forest View, Illinois, part of Main Channel Parcel 38.11. Consideration shall be $53,000.00
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Dear Sir:
On February 16, 2012, the Board of Commissioners authorized a 9-month permit extension to W.E. O'Neil Construction Company ("O'Neil") for continued occupancy of the subject property. The permit extension was issued upon the expiration of O'Neil's 5-year permit on the site to allow O'Neil time to complete an environmental site assessment and to vacate the site. The 5-year permit was obtained through the District's statutory bidding process. As extended, O'Neil's permit expires May 31, 2013. O'Neil has indicated that it is in the process of negotiating the purchase of a site to which it will eventually move its operations. As the transaction has not been completed and the new location will require certain site development work, O'Neil has requested an additional 3 ½ years to vacate the subject site.
Any further occupancy of the premises must be under a lease procured through the statutory leasing process. An 8-month permit extension through December 30, 2013, is therefore recommended so that the statutory leasing procedures can be completed. A companion Board letter seeking authority to commence statutory leasing procedures for a 3-year lease on this site is being presented at today's meeting.
The annual permit fee for the site is $76,500.00, which was based upon 10% of the site's appraised fair market value. It is recommended that consideration for the permit extension be $53,000.00, which represents the pro-rata share of 10% of the fair market value plus a 3.5% inflation rate.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of an 8-month permit extension to W.E. O'Neil Construction Company on 3 acres of District real estate located at 4100 West 41st Street in Forest View, Illinois, part of Main Channel Parcel 38.11. Consideration shall be $53,000.00.
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 permit extension agreement after it is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM:BEB
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 May 16, 2013
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