TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 29, 2013
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authorization to declare as surplus and not required for corporate purposes and to sell to the Forest Preserve District of Will County approximately 326.40 acres of District real estate located in Will County, Illinois, known as Main Channel Parcel Numbers 19.05, 19.06, 19.07, 20.05, 20.06, 20.07, 20.09, 21.04, 21.05 and 21.08 Consideration is $2,531,237.00
Body
Dear Sir:
At its meeting of June 18, 2009, the District's Board of Commissioners authorized the commencement of negotiations with the Forest Preserve District of Will County ("Forest Preserve") for the sale of certain District parcels located in Will County not required for the District's corporate purposes. During negotiations, the parcels to be sold were identified and a two-phase sale was proposed. Phase I comprised 315.256 acres and encompassed Main Channel Parcels 1.01 (the northern ⅔), 14.01, 15.01, 15.03, 15.06 and 15.07. These parcels are referred to as the Lockport Prairie, the I&M Loop Trail, and the Rock Rookery. The parcels contain wetlands, dedicated prairie lands, or critical habitats for endangered species. The Phase I parcels were sold to the Forest Preserve in 2011 for $2,217,438.60.
Phase II comprises those parcels located along the Main Channel, between 135th Street and the Will/Cook County line (near the I-355 extension). A two-phase sale was proposed because the U.S. Army Corp of Engineers ("Corps") identified much of that land for installation of the Asian Carp barrier ("the fish barrier"). The Forest Preserve proposed delaying the purchase of those parcels until the exact location and amount of land to be used by the Corps was delineated since a portion of it may ultimately be unusable or inaccessible for public use due to the installation of the fish barrier (criteria vital to the Forest Preserve's Board authorizing a purchase since its mission and purpose is to manage large tracts of land for public access and forest preserve use). The Corps has determined it will not require the land for the fish barrier; the Forest Preserve is now prepared to move forward. Phase II comprises approximately 326.40 acres. A drawing of the property is attached.
The Forest Preserve annually leases all Phase II Parcels for nominal consideration, which expire in 2033. In accordance with District policy, appraisals were obtained to establish the fair market value of the Phase II parcels. The appraisal results are as follows:
APPRAISER APPRAISED FAIR MARKET VALUE
Appraisal Associates, Inc.
William J. Enright, MAI
(District's appraiser)
.$3,033,980.00
Polach Appraisal Group, Inc.
Kenneth F. Polach, MAI
(Forest Preserve's appraiser)
.$2,028,494.00
James V. Smith and Associates
James V. Smith, MAI
(Forest Preserve's appraiser)
$1,732,620.00
It is recommended that the fair market value of the land be established at $2,531,237.00, which represents the middle between the two highest appraisals. This fee was arrived at after the Forest Preserve rejected the District's offer to sell for the District's full appraised value, and the District rejected an offer by the Forest Preserve at prices lower than its appraised value. The Forest Preserve has indicated its willingness to accept splitting the difference between the two highest appraisals to arrive at the purchase price.
The District's technical departments have reviewed this proposed sale and have no objections thereto. Because the land is located in Will County, Illinois, the sale will not conflict with District policy prohibiting the sale of waterway lands located in Cook County.
It is requested that the Executive Director recommend to the Board of Commissioners that it pass the following Orders:
1. That the 326.40 acres of District real estate located in Will County, Illinois, known as Marin Channel Parcels 19.05, 19.06, 19.07, 20.05, 20.06, 20.07, 20.09, 21.01, 21.04, 21.05 and 21.08 be declared surplus and not needed for corporate purposes; and
2. That the fair market value of said real estate be established at $2,531,237.00; and
3. That the sale of said real estate to the Forest Preserve District of Will County at a price of $2,531,237.00 pursuant to an Agreement for Purchase and Sale of Real Estate for these parcels embodying customary terms and conditions and the conditions set for the above be authorized and approved; and
4. That the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute said Agreement for Purchase and Sale of Real Estate, the deed and any other document necessary in effecting the aforesaid sale of these parcels after same have been approved by the General Counsel as to form and legality; and
5. That the General Counsel be authorized and directed to execute and deliver all other documents necessary to effectuate said sale.
Requested, Ronald M. Hill, General Counsel, RMH:STM:MLD:ldl
Recommended, Davis St. Pierre, Executive Director
Respectfully Submitted, Mariyana T. Spyropoulos, 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 August 29, 2013
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