TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 12, 2010
COMMITTEE ON REAL ESTATE
Mr. Richard Lanyon, Executive Director
Title
Authority to issue a 1-year permit extension to A. Block Marketing, Inc. & Wholesale Mulch Products, Inc. on approximately 18 acres of District land located at 15660 Canal Bank Road in Lemont, Cook County, Illinois, and known as part of Main Channel Atlas Parcel 23.03, consideration shall be $112,480.00
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Dear Sir:
On February 3, 2005, the District’s Board of Commissioners authorized the issuance of a 23-month permit to A. Block Marketing, Inc. & Wholesale Mulch Products, Inc., co-permittees, on 18 acres of District land at 15660 Canal Bank Road in Lemont, Illinois, to operate a mulch business. The permit was subsequently extended through a series of permit extensions to October 31, 2010.
A. Block Marketing, Inc. & Wholesale Mulch Products, Inc. previously occupied the site under a sublease agreement with Tri-River Docks, Inc., the former tenant on the site, whose lease was terminated on November 18, 2004. An occupancy permit was therefore issued to A. Block Marketing, Inc. & Wholesale Mulch Products, Inc. to allow continued use of the site. A. Block Marketing, Inc. & Wholesale Mulch Products, Inc. are separate entities but are owned and operated by the same principals. Their businesses work together and share the same space at the site as A. Block performs the marketing services and Wholesale Mulch performs the mulching business operations. Wholesale Mulch loads, unloads, stores, and sells mulch. It also grinds wood and trees into chips. Because the area of land on which the permit premises is located is part of a larger tract of land, the future long-term use of which was uncertain at the time of issuance, a permit was issued on this site to allow A. Block to operate on a short-term basis.
A. Block has requested a final 1-year extension to its permit to wind down and close out its business. Because there is no current need for this site and because the permit provides revenue for the District, a 1-year permit extension is being recommended.
A fee of $112,480.00 is recommended and is based upon comparable appraisals on nearby sites compounded with a 3.5% inflation rate.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve a 1-year extension to the permit issued to A. Block Marketing, Inc. & Wholesale Mulch Products, Inc. on approximately 18 acres of District land located at 15660 Canal Bank Road in Lemont, Cook County, Illinois, and known as part of Main Channel Atlas Parcel 23.03. Consideration shall be $112,480.00.
It is further requested that the Executive Director recommend to the Board of Commissioners that the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute said permit extension after same is approved by the General Counsel as to form and legality.
Requested, Frederick M. Feldman, General Counsel, FMF:CL:STM:rg
Recommended, Richard Lanyon, Executive Director
Respectfully Submitted, Terrence J. O’Brien, 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 12, 2010
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