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File #: 13-0571    Version: 1
Type: Agenda Item Status: Adopted
File created: 5/24/2013 In control: Procurement Committee
On agenda: 6/6/2013 Final action: 6/6/2013
Title: Authority to advertise Contract 13-362-11 for public tender of bids a 39-year lease on 9.19 acres of District real estate located at 5700 West 41st Street in Forest View, Illinois; Main Channel Parcels 38.12 & 38.13. The minimum initial rental bid shall be established at $175,000.00.
Attachments: 1. 06-06-13_CANAL STORAGE.pdf
TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 6, 2013
 
COMMITTEE ON PROCUREMENT
 
Mr. David St. Pierre, Executive Director
 
Title
Authority to advertise Contract 13-362-11 for public tender of bids a 39-year lease on 9.19 acres of District real estate located at 5700 West 41st Street in Forest View, Illinois; Main Channel Parcels 38.12 & 38.13. The minimum initial rental bid shall be established at $175,000.00.
Body
Dear Sir:
 
On September 6, 2012, the District's Board of Commissioners authorized the commencement of statutory procedures to lease the subject real estate.  This site is currently vacant.
 
Pursuant to statute, the lead applicant, Canal Storage, LLC submitted two appraisals and the Law Department obtained a third appraisal as follows:
 
            Appraiser                                    Value
 
Appraisal Associates
William J. Enright, MAI                                    $1,750,000.00
 
Illinois Appraisal Services, Inc.
Lawrence Starkman, MAI                                    $    905,000.00
 
The Metron Group
Peter Poulos, MAI                                          $    930,000.00
 
It is recommended that the subject real estate's fair market value be based upon the highest of the three appraisals and established at $1,750,000.00 and that the minimum annual rental bid be established at 10% of the property's fair market value or $175,000.00.
 
It is also recommended that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of the following orders:
 
1.      The real estate consisting of 9.19 acres located at 5700 West 41st Street in Forest View, Illinois, and known as Main Channel Parcels 38.12 and 38.13 depicted in the exhibit attached hereto be declared surplus and not currently needed for the District's corporate purposes and available for lease as set forth herein.
 
2.      The fair market value of the 9.19 acres of real estate be established at $1,750,000.00 and that the minimum initial annual rental be established at 10% thereof or $175,000.00.
 
3.      The Director of Procurement and Materials Management be authorized to advertise said 9.19 acres of real estate as available for lease for a term of thirty-nine (39) years at the minimum initial annual rental bid of $175,000.00 and report the results of the bidding to the Board of Commissioners for further action.
 
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the Director of Procurement and Materials Management to advertise Contract 13-362-11 for public tender of bids a 39-year lease of 9.19 acres of District real estate located at 5700 West 41st Street in Forest View, Illinois; Main Channel Parcels 38.12 and 38.13. The minimum initial annual rental bid shall be established at $175,000.00.
 
Requested, Ronald M. Hill, General Counsel, RMH: SM: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 June 6, 2013
 
Attachment