TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 3, 2022
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to grant Peoples Gas Light and Coke Company a 25-year, approximately 2,505 sq. ft., non-exclusive easement to construct, install, operate, maintain, repair, replace and remove a cathodic protection system and appurtenances thereto upon and below a portion of North Shore Channel Parcel 9.04 near the intersection of West Ainslie Street and North Sacramento Avenue in Chicago, Illinois. Consideration shall be an initial annual easement fee of $5,000.00
Body
Dear Sir:
On August 18, 1960, the District granted Peoples Gas Light and Coke Company (“Peoples Gas”) a perpetual, nonexclusive easement for a 36’’ diameter subterranean natural gas pipeline (“Pipeline”) located beneath a portion of North Shore Channel Parcel 9.04 (“Parcel 9.04”) and the North Branch of the Chicago River.
Peoples Gas requests a new easement to install a cathodic protection system adjacent to the Pipeline, starting near the intersection of West Ainslie Street and North Sacramento Avenue. The cathodic protection system will help prevent corrosion of the Pipeline.
Chicago Park District (“CPD”) leases Parcel 9.04 under a lease that commenced April 1, 1962, and expires March 31, 2061, for use as a public park. The easement is therefore subject to CPD’s consent.
The District’s technical departments have reviewed Peoples Gas’ request and have no objections thereto. It is recommended that an initial annual easement fee of $5,000.00 be assessed for the 25-year easement as the pro-rata share of 10% of the fair market value of the easement premises would yield a fee less than the District's minimum fee of $5,000.00.
It is requested that the Executive Director recommend to the Board of Commissioners that it grant Peoples Gas Light and Coke Company a 25-year, approximately 2,505 sq. ft., non-exclusive easement to construct, install, operate, maintain, repair, replace and remove a cathodic protection system and appurtenances thereto upon and below a portion of North Shore Channel Parcel 9.04 near the intersection of West Ainslie Street and North Sacramento Avenue in Chicago, Illinois. Consideration shall be an initial annual easement fee of $5,000.00.
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 easement agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:MTC:JAW:vp
Recommended, Brian A. Perkovich, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for November 3, 2022
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