TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 20, 2013
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to grant a 25-year non-exclusive easement to Kovas Communications, Inc. for use of 84,398 square feet of District property located within the Terrence J. O'Brien Water Reclamation Plant at 3500 W. Howard Street in Skokie, Illinois, for the operation and maintenance of four (4) freestanding radio transmission antenna towers, a transmitter building, an underground grid system and appurtenances related thereto. Consideration shall be an initial annual fee of $88,000.00
Body
Dear Sir:
Kovas Communications, Inc. ("Kovas") has occupied the referenced property under a series of permits over the past 31 years for the operation and maintenance of four (4) freestanding radio transmission antenna towers, a transmitter building, an underground grid system and appurtenances related thereto ("Facilities"). The permit, as renewed and extended, expires June 30, 2013. Due to the subject property's proximity to District plant operations, Kovas has occupied the subject property under a permit, as the District retains much greater authority to terminate the agreement if corporate needs require the same.
After the last permit extension was granted, the District's technical departments re-evaluated its corporate needs and determined that Kovas' use of the referenced property would not interfere with the proposed corporate projects at the O'Brien Plant. The grant of a 25-year easement is recommended in response to Kovas' request for a long-term agreement, as the easement agreement will provide for non-exclusive use of the premises.
The parties have obtained appraisals on the easement premises as follows:
APPRAISER VALUE
Appraisal Associates $880,000.00
William J. Enright, M.A.I.
(District's Appraiser)
Meridian Appraisal and Consulting Group, Ltd. $717,500.00
Rufino Arroyo
ISO Valuation Group, Ltd. $316,500.00
John S. O'Dwyer, M.A I.
It is District policy to assess the annual easement fee based upon 10% of the site's highest appraised value. It is recommend that the subject real estate's fair market value be based upon the highest of the three appraisal values, and established at $880,000.00, and that the annual easement fee be established at 10% of the site's fair market value or $88,000.00.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the issuance of a 25-year non-exclusive easement to Kovas Communications, Inc. for the continued use of 84,398 square feet of District property located within the Terrence J. O'Brien Water Reclamation Plant at 3500 W. Howard Street, in Skokie, Illinois, for the operation and maintenance of four (4) freestanding radio transmission antenna towers, a transmitter building, an underground grid system and appurtenances related thereto. Consideration shall be an initial annual fee of $88,000.00.
It is further requested that the Executive Director recommend to the Board of Commissioners that it authorize the Chairman of the Committee on Finance and the Clerk to execute the easement agreement after it is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, Catherine A. O'Connor, Director of Engineering, Manju P. Sharma, Director of Maintenance and Operations, RMH:CAO:MPS: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 June 20, 2013
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