TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 29, 2013
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to advertise Contract 13-365-11 for public tenders of bids a 39-year lease of 0.715± acres of improved District real estate located near 7800 West 59th Street in Summit, Illinois; Main Channel Parcel 34.09. The minimum initial annual rental bid shall be established at $8,600.00.
Body
Dear Sir:
On August 8, 2013, the District's Board of Commissioners authorized the commencement of statutory procedures to lease the subject real estate. The subject real estate is currently occupied by Owens Corning Roofing & Asphalt, LLC ("Owens Corning") under a permit that expires November 14, 2013. Owens Corning previously leased the site under successive leases and permits that commenced on May 1, 1946 and expired on November 14, 2011. The site is improved with four above ground storage tanks containing mineral spirits, a rail spur and fencing and is used in conjunction with the existing operations of the adjacent Owens Corning Asphalt Plant
Pursuant to statute, the lead applicant Owens Corning, submitted two appraisals and the Law Department obtained a third appraisal as follows:
Appraiser Value
Appraisal Associates
William J. Enright, MAI $85,000.00
(District's Appraisal)
Renzi & Associates, Inc.
Neil J. Renzi, MAI $80,000.00
MaRous & Company
Michael S. MaRous, MAI $86,000.00
It is recommended that the subject real estate's fair market value be based upon the highest of the three appraisals and established at $86,000.00 and that the minimum annual rental be established at 10% of the property's fair market value or $8,600.00.
It is further recommended that the Executive Director recommend to the Board of Commissioners that it authorize and approve the following orders:
1. The real estate consisting of 0.715± acres located near 7800 West 59th Street in Summit, Illinois, Main Channel Parcel 34.09 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 0.715± acres of real estate be established at $86,000.00 and that the minimum initial annual rental be established at 10% of the property's fair market value or $8,600.00; and
3. The Director of Procurement & Materials Management be authorized to advertise said 0.715± acres of improved District real estate as available for lease for a term of 39-years at the minimum initial annual rental bid of $8,600.00 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 13-365-11 for public tenders of bids a 39-year lease of 0.715± acres of improved District real estate located near 7800 West 59th Street in Summit, Illinois; Main Channel Parcel 34.09. The minimum initial annual rental bid shall be established at $8,600.00.
Requested, Ronald M. Hill, General Counsel, RMH:STM:NPE: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 August 29, 2013
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