TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 19, 2008
COMMITTEE ON REAL ESTATE
Mr. Richard Lanyon, General Superintendent
Title
Authority to issue a 1-year permit to Midwest Generation, LLC on approximately 12 acres of District real estate located south of 9th Street in Will County, Illinois; Main Channel Parcel Number 15.03. Consideration shall be $43,470.00
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Dear Sir:
Midwest Generation, LLC leases approximately 12 acres of land in Will County under a lease that commenced in 1958 and expires June 30, 2008. Midwest Generation operates and maintains electrical lines and a railroad spur line (known as the Paul Ales Branch) that services Midwest Generation’s Will County power station on non-District owned land. The site is a long, narrow strip of land (approximately 4,800 feet x 110 feet) located south of 9th Street in Will County, Illinois, c/k/a Main Channel Parcel Number 15.03. The rail line bisects the site’s 4,800-foot length with the premises extending approximately 55 feet on either side of the tract. The leasehold is buttressed between two Will County Forest Preserve leasehold sites. The current annual rent is $42,000.00.
Midwest Generation has requested to either enter into a new lease on the subject property or purchase the site upon expiration of its lease in June 2008. Technical reviews were conducted on the request, and the technical departments have indicated that there is no corporate need for this site and therefore there would be no objections to either a new, long-term lease or a sale of the site.
The issuance of a 1-year permit is therefore being recommended to allow Midwest Generation to continue to occupy the site during the completion of an environmental review of the property. Upon completion of the environmental review, a recommendation will be made concerning the future use or disposition of the property. The permit fee of $43,470.00 is based upon Midwest Generation’s annual rent under its lease and, based upon available data, is comparable to 10% of the fair market value of the site.
It is requested that the General Superintendent recommend to the Board of Commissioners that it issue orders authorizing the issuance of a 1-year permit to Midwest Generation, LLC on approximately 12 acres of land located south of 9th Street in Will County, Illinois; Main Channel Parcel 15.03. Consideration shall be $43,470.00.
It is further requested that the General Superintendent recommend to the Board of Commissioners that it authorize the Chairman of the Committee on Finance and the Clerk to execute said permit agreement once approved by the Attorney as to form and legality.
Requested, Frederick M. Feldman, Attorney, FMF:CL:STM:nm
Recommended, Richard Lanyon, General Superintendent
Respectfully Submitted, Terrence J. O’Brien, Chairman Committee on Real Estate Development
ORDERED passed by affirmative roll call vote of a majority of the Commissioners present this June 19, 2008. Approved, President Terrence J. O’Brien
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