TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 1, 2012
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
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Authority to issue a six-month permit extension to LaBarge Propane, Inc. for the continued use of 1.5 acres of District real estate located at 15680 Canal Bank Road in Lemont, Illinois; part of Main Channel Parcel 23.01. Consideration shall be $6,534.00
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Dear Sir:
Reclamation Construction Corporation previously leased 52 acres of District real estate under a lease that commenced in 1954 and expired in 2004. The leasehold site was located on the north side of the Main Channel, east and west of Lemont Road in Lemont. The leasehold site contained several subleases. Reclamation's annual rent was $7,388.89 for the entire 52-acre site.
One sublease comprised a 1.5-acre portion of the site and was subleased to LaBarge Propane, Inc. ("LaBarge") to operate a propane business. The site contains one 30,000 gallon storage tank, pumps, and a raised dock with a building in which propane cylinders are filled.
Since the expiration of the sublease, LaBarge has occupied the site under a permit. LaBarge has continuously requested to lease the site. However, this site has not previously been made available for lease due to the Village of Lemont's previous request that the District not issue leases on this property and the surrounding property until its long-term plans and goals for the area were devised. In response to Lemont's request, the District placed the subject parcel and adjacent parcels on hold for several years and allowed LaBarge and other entities to occupy the sites under occupancy permits during the interim.
Lemont indicated that it has no objections to the District making these sites available for lease through the statutory leasing process. In March 2012, a 5.5 acre area, which included LaBarge's 1.5 acre permit area, was advertised as available for lease and no bids were received. LaBarge indicated that it did not bid for a new lease because the new leasehold site encompassed an area considerably larger than its current permit premises, which included excess land for which it has no use. LaBarge has requested that a smaller area of land comprising 2.5 acres be advertised as available for lease. Staff will be seeking authority to advertise this smaller area of land at an upcoming agenda.
A six-month permit extension is being recommended to allow LaBarge to continue to occupy the site during the statutory leasing process for a new lease on the site.
A Phase I was conducted on the permit premises which did not reveal any environmental concerns.
A permit extension fee of $6,534.00 is recommended which represents the pro-rata share of 10% of the site's appraised fair market value.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of a six-month permit extension to LaBarge Propane, Inc. on approximately 1.5 acres of real estate located at 15680 Canal Bank Road in Lemont, Illinois; part of Main Channel Parcel 23.01. Consideration shall be $6,534.00.
It is also 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 agreement after it is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:SM:rg
Recommended, David St. Pierre, 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 Commissioner for November 1, 2012
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