TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 3, 2013
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authorization to accept initial annual rental bid for Contract 12-368-11 Proposal to Lease for 36-years 19.063 acres of District real estate located near 10100 Archer Avenue in Willow Springs, Illinois, and known as Main Channel Parcel 28.06 from Rowell Chemical Corporation in the amount of $52,000.00
Body
Dear Sir:
At its meeting of September 6, 2012, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise Contract 12-368-11 Proposal to Lease for 36-years 19.063 acres of District real estate located near 10100 Archer Avenue in Willow Springs, Illinois, and known as Main Channel Parcel 28.06. The minimum acceptable annual rental bid was established at $50,000.00.
One bid was received for the subject proposal and was opened on October 23, 2012. The bid was received from Rowell Chemical Corporation ("Rowell") for a minimum initial annual rental bid of $52,000.00 (10.4% of the appraised fair market value).
Rowell has occupied the adjacent parcel, Main Channel Parcel 28.01, under a series of leases and permits since 1957 to operate a chemical manufacturing facility of acid, chlorine and bleach and an asphalt terminal. Rowell's lease on Parcel 28.01 expires in 2048. A 36-year lease was advertised in this instance so that the two Rowell leases expire simultaneously. Rowell's proposed use of the subject site under a new lease is for the expansion of its current operations on its adjacent leasehold site.
The Finance Department has reviewed Rowell's financial and company background information and has reported that it demonstrates the ability to meet its financial obligations under the new proposed lease.
It is requested that the Executive Director recommend to the Board of Commissioners that it accept the initial annual rental bid for Contract 12-368-11 Proposal to Lease for 36-years 19.063 acres of District real estate located near 10100 Archer Avenue in Willow Springs, Illinois, and known as Main Channel Parcel 28.06 from Rowell Chemical Corporation in the amount of $52,000.00.
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 lease agreement after it has been approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM:rg
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 January 3, 2013
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