TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 17, 2013
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to issue a two (2) month permit extension to Wilmette Harbor Association to continue to occupy approximately 0.69 acres of District real estate known as North Shore Channel Parcels 1.02, 1.03 and 1.04, plus the Wilmette Harbor in Wilmette, Illinois. Consideration shall be $11,167.00
Body
Dear Sir:
The Wilmette Harbor Association ("WHA") occupies 0.69 acres of real estate, plus the Wilmette Harbor, under a permit that expires January 31, 2013. Prior to issuance of the permit, the WHA occupied the site under a 50-year lease that expired July 25, 2012. The site contains a parking lot, a building, the harbor walls/breakwaters, the harbor and the breakwaters extending into Lake Michigan. Under its lease and permit, WHA maintains and operates the Wilmette Harbor ("Harbor") and breakwaters for the mooring of pleasure boats and yachts. The maintenance work encompasses dredging the Harbor so that an adequate supply of water can enter the Harbor to supply the District's pumps at the Wilmette Pumping Station. Additional maintenance work involves maintaining the breakwaters that surround the perimeter of the Harbor and the three breakwaters extending into Lake Michigan. WHA's rent under its lease was in the form of performing this dredging and maintenance work. A monthly permit fee of $5,583.50 was assessed under the current permit extension period, which represents 10% of the pro-rata share of the appraised fair market value of the site.
On September 6, 2012, the Board of Commissioners authorized the advertisement for the public tender of bids a 39-year lease on the subject premises. The minimum initial rental bid was established at $67,000.00. On October 23, 2012, bids were opened and three bids were received. The bids were submitted by the WHA, Centerpointe Yacht Services, LLC and Wilmette Harbor Management, Inc. Centerpointe and Wilmette Harbor Management each submitted bids in the amount of $70,000.00 while the WHA's bid was the lowest of the three bids at $68,501.00.
Staff is in the process of evaluating the bids. Until such time as an award of a new lease can be recommended to the Board, it is recommended that the WHA continue to occupy the premises to allow the WHA to remove any personal property and otherwise vacate the premises. It is recommended that the permit fee be $11,167.00 which represents the pro-rata share of 10% of the site's established fair market value of $670,000.00.
It is requested that the Executive Director recommend to the Board of Commissioners that it issue orders authorizing the issuance of a two (2) month permit extension to the Wilmette Harbor Association on approximately 0.69 acres of District real estate located on North Shore Channel Parcels 1.02, 1.03, and 1.04 plus the Wilmette Harbor. Consideration shall be $11,167.00.
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 said permit extension agreement once approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:SM:rg
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Cynthia M. Santos, Vice-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 January 17, 2013
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