TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 29, 2013
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to advertise for the public tender of bids a 3-year lease on approximately 3 acres of District real estate located at 4100 West 41st Street in Forest View, Illinois; Main Channel Parcel 38.11. The minimum initial rental bid shall be established at $75,000.00.
Body
Dear Sir:
On May 16, 2013, the District's Board of Commissioners authorized the commencement of statutory procedures to lease approximately 3 acres of District real estate located at 4100 West 41st Street in Forest View, Illinois. The W.E. O'Neil Construction Company ("O'Neil") has occupied approximately 3 acres of District real estate located at 4100 West 41st Street in Forest View, Illinois, under a sublease beginning in 1978 and under successive permits since 2004. O'Neil currently occupies the site under an 8-month permit extension that expires December 31, 2013. The current permit extension fee for the site is $53,000.00.
In accordance with statute, O'Neil, the lead applicant, submitted two appraisals and the District obtained a third appraisal. The appraisal results are as follows:
Appraiser Value
Borysow Appraisal $245,000.00
Paul Borysow, MAI
The Metron Group $270,000.00
Certified Appraisers and Consultants
Peter Soulos, MAI
Appraisal Associates $750,000.00
William J. Enright, MAI
(District's Appraiser)
It is recommended that the subject property's fair market value be based upon the highest of the three appraisals and established at $750,000.00 and that the minimum annual rental bid be established at $75,000.00.
It is further 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 approximately 3 acres of District real estate located at 4100 West 41st Street in Forest View, Illinois, Main Channel Parcel 38.11 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 approximately 3 acres of real estate be established at $750,000.00 and that the minimum initial rental bid be established at 10% thereof, or $75,000.00 annually.
3.) The Director of Procurement & Materials Management be authorized to advertise the subject 3 acres of real estate as available for lease for a term of 3-years at the minimum initial annual rental bid of $75,000.00 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 for public tender of bids a 3-year lease of approximately 3 acres of District real estate located at 4100 West 41st Street in Forest View, Illinois; Main Channel Parcel 38.11. The minimum initial annual rental bid shall be established at $75,000.00.
Requested, Ronald M. Hill, General Counsel, RMH:STM:BEB: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
Attachment