TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 16, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to advertise Contract 24-362-11 for public tender of bids for a 10-year lease on 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 Parcels 6.06, 6.11, and 6.14 (portion). The minimum initial annual rental bid shall be established at $340,000.00
Body
Dear Sir:
The Board of Commissioners authorized the commencement of statutory procedures to lease 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 Parcels 6.06, 6.11, and 6.14 (portion), on September 21, 2023. The parcels make up an industrial site that is currently occupied by the lead applicant, Builder’s Asphalt, LLC (“Builder’s”), until February 28, 2025. Builder’s and its predecessors have used this site for operating an asphalt plant since 1960.
Builder’s intends to continue using the site for the operation of its asphalt plant. The Village of Skokie supports this proposed use of the site. Pursuant to statute, the lead applicant submitted two appraisals and the Law Department obtained a third appraisal, as follows:
Appraiser Value
Appraisal Associates $3,400,000.00
William I. Enright, MAI
(District’s Appraiser)
Kelly Appraisal Consultants, Inc. $3,230,000.00
Patrick M. Kelly, MAI
Marous & Company $2,300,000.00
Michael S. MaRous, MAI
It is recommended that the subject real estate’s fair market value be based upon the highest of the three appraisals and established at $3,400,000.00, and that the minimum initial annual rental bid be established at 10% of the property’s fair market value, which is $340,000.00.
It is further requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the following orders:
1. The real estate, which comprises 7.42± acres located along the North Shore Channel between Oakton Street and the CTA Yellow Line tracks in Skokie, Illinois, known as North Shore Channel Parcels 6.06, 6.11, and 6.14 (portion), is not currently needed for the District’s corporate purposes and is available for lease.
2. The fair market value of the subject real estate is established at $3,400,000.00, and the minimum initial annual rent be established at 10% thereof, which is $340,000.00.
3. The Director of Procurement and Materials Management is authorized to advertise the subject real estate as available for lease for a 10-year term at the minimum initial annual rental bid of $340,000.00, and report the results of the bidding to the Board of Commissioners for further action.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the Director of Procurement and Materials Management to advertise Contract 24-362-11 for public tender of bids for a 10-year lease on 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 Parcels 6.06, 6.11, and 6.14 (portion). The minimum initial annual rental bid shall be established at $340,000.00.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:NOC:nl
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Marcelino Garcia, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for May 16, 2024
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