TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 15, 2024
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to issue an 8-month permit to Builder’s Asphalt, LLC for the continued use of North Shore Channel Parcels 6.06 and 6.11 located along the North Shore Channel between Oakton Street and the CTA Yellow Line tracks. Consideration shall be a permit fee of $144,187.00
Body
Dear Sir:
Builder’s Asphalt, LLC (“Builder’s”) currently leases approximately 7.42 acres of District real estate located along the North Shore Channel between Oakton Street and the CTA Yellow Line tracks in Skokie, Illinois, known as North Shore Channel (“NSC”) Parcels 6.06, 6.11, and 6.14 (portion), under two separate lease agreements. The first lease on NSC Parcels 6.06 and 6.11 commenced July 1, 2014, and expires June 30, 2024. The current annual rent is $216,280.18. The second lease on NSC Parcel 6.14 (portion) commenced March 1, 2018, and expires February 28, 2025. The current annual rent is $56,632.58. Builder’s and its predecessors have used this site for operating an asphalt plant since 1960.
On September 21, 2023, the Board of Commissioners authorized the commencement of statutory procedures for a new lease of all three parcels to start when the second lease expires on February 28, 2025. Builder’s has requested an 8-month permit to continue using 6.06 and 6.11 while the leasing procedure is ongoing. If Builder’s is not the successful bidder, it will be required to vacate the premises before commencement of any new lease awarded by the Board.
The District’s technical departments have reviewed this request and have indicated that the subject site is not currently needed for corporate use and that they have no technical objections thereto. The Village of Skokie supports Builder’s current use of the property, as Builder’s has been a good steward of the property and the proposed use complies with local code regulations.
A one-time permit fee of $144,187.00 is recommended, as this represents the prorated amount of the current annual rent of the subject parcels as adjusted for inflation.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of an 8-month permit to Builder’s Asphalt, LLC for the continued use of North Shore Channel Parcels 6.06 and 6.11 located along the North Shore Channel between Oakton Street and the CTA Yellow Line tracks. Consideration shall be a permit fee of $144,187.00.
It is further requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the Chairman of the Committee on Finance and the Clerk to execute said Permit Agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:NOC
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 February 15, 2024
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