TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 11, 2013
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to commence statutory procedures to lease approximately 4.51 acres of District real estate located at 3219 Oakton Street in Skokie, Illinois; North Shore Channel Parcels 6.01, 6.06 and 6.07 and to waive the North Shore Channel Resolution
Body
Dear Sir:
Monarch Asphalt Company ("Monarch") has requested a 10-year lease on approximately 4.51 acres of District real estate located at 3219 Oakton Street in Skokie, Illinois and known as North Shore Channel Parcels 6.01, 6.06 and 6.07. Monarch previously leased North Shore Channel Parcel 6.01 comprising 1.99 acres under a 60-year lease that expired on April 14, 2010. Oakton-McCormick, LLC leased North Shore Channel Parcels 6.06 and 6.07 comprising 2.52 acres under a 10-year lease that expired on December 31, 2010. The combined annual rent under these leases was $70,438. Monarch and Oakton-McCormick (collectively referred to as "Monarch") are entities owned by the same principals and these adjoining sites are used together for the operation of an asphalt plant and ancillary operations thereto. Upon expiration of the two leases, Monarch was issued a permit to perform environmental remediation and to vacate these sites. The permit, as extended, expires December 31, 2013. The annual permit fee is $216,101.16.
Monarch has remediated a portion of its site under its current permit by removing large piles of concrete and asphalt piles. In the event a new lease is authorized, any remaining remediation will be completed over the term of any new lease entered into on this site.
At the time Monarch's leases expired, it was anticipated that the Skokie Park District may wish to lease these parcels. The sites were therefore not made available for lease through the statutory leasing process. While the Skokie Park District has expressed an interest in pursuing a long-term lease in order to provide additional green space and public recreational use, it has indicated that it does not have current plans to lease or develop the Monarch parcels. Monarch has therefore renewed its request to lease the sites. The Skokie Park District has indicated that it has no objections to the possibility of Monarch remaining on this site for another ten years.
The District's technical departments have no objections making North Shore Channel Parcels 6.01, 6.06 and 6.07 available for lease for 10 years.
The subject real estate falls within the area subject to the North Shore Channel Resolution, enacted in 2003, which requires that District land located along the North Shore Channel between Devon Avenue and the Wilmette Harbor be leased only for green-space and public recreational use. It is recommended that a waiver of the North Shore Channel Resolution be granted for these parcels as their use pre-dates this resolution and the Skokie Park District is not in a position to lease the land at this time. Additionally, rental income can be generated by leasing these parcels through the statutory leasing process.
It is requested that the Executive Director recommend to the Board of Commissioners that is authorize and direct the General Counsel to commence statutory procedures to lease approximately 4.51 acres of District real estate located at 3219 Oakton Street in Skokie, Illinois; North Shore Channel Parcels 6.01, 6.06 and 6.07 and to waive the North Shore Channel Resolution upon the terms and conditions set forth herein.
Requested, Ronald M. Hill, General Counsel, RMH:STM:rg
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 July 11, 2013
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