TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 7, 2026
COMMITTEE ON REAL ESTATE
Mr. John P. Murray, Executive Director
Title
Authorization to: (1) declare as surplus and not required for corporate purposes, and to sell to the Chicago Transit Authority, 14.29± acres of District real estate located at the Calumet Water Reclamation Plant in Chicago, Illinois; and (2) enter into permanent and temporary easement agreements with the Chicago Transit Authority in connection with Red Line Extension Project. Consideration shall be $4,490,000.00
Body
Dear Sir:
On May 15, 2025, the Board of Commissioners authorized the District to negotiate and enter into an Intergovernmental Agreement (IGA) with the Chicago Transit Authority (CTA) for the Red Line Extension Project (Project). CTA’s overall Project includes extending the CTA’s Red Line from 95th Street to 130th Street, construction of a new Red Line station south of 130th Street, and a rail yard near the District’s Calumet Water Reclamation Plant (Calumet WRP).
As part of the Project, CTA requires certain real estate interests to be acquired from the District. In particular, CTA must purchase fee simple title to 14.29± acres of the Calumet WRP west of Cottage Grove Avenue, obtain a permanent easement of 0.03± acres for an outfall and catch basins, and obtain a temporary construction easement of 8.83± acres located within the Calumet WRP. The IGA stipulates that if the Project does not move forward, the District will have the right to purchase the real estate back if needed for corporate purposes.
The District’s technical departments have reviewed these requests and have no objections thereto. As negotiated in the IGA, the District will reserve easements in the part sold as necessary to operate and maintain District infrastructure at the Calumet WRP. Additionally, the District will be granted a permanent easement by CTA for use of a newly constructed Cottage Grove Place roadway to access the west drying beds at the Calumet WRP after the completion of the Project.
The proposed transaction is consistent with past District property sales to public entities for fair market value. The District’s appraiser, Pat McGarr, MAI, determined the fair market value of the real estate interests to be acquired by CTA as follows:
Interest Acres Value
Fee Simple 14.29± acres $3,606,000.00
Permanent Easement 0.03± acres $2,700.00
Temporary Easement 8.83± aces $881,300.00
Total 23.15± aces $4,490,000.00
It is requested that the Executive Director recommend to the Board of Commissioners that it pass the following orders:
1. That the subject land,14.29± acres of District real estate located at the Calumet Water Reclamation Plant in Chicago, Illinois, be declared surplus and not needed for corporate purposes, and may be sold to the Chicago Transit Authority for the Red Line Expansion Project;
2. That it authorize the District to grant the Chicago Transit Authority a permanent easement of 0.03± acres for an outfall and catch basins on District property in Calumet, Illinois;
3. That it authorize the District to grant the Chicago Transit Authority a temporary easement of 8.83± acres of District property located within the Calumet Water Reclamation Plant in Calumet, Illinois;
4. That the total fair market value of said property interests be established at $4,490,000.00;
5. That the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute the contract, deed, the temporary and permanent easement agreements, the Cottage Grove Place roadway access easement agreement, and any other documents necessary in effecting the aforesaid real estate transactions after same have been approved by the General Counsel as to form and legality; and
6. That the General Counsel be authorized and directed to execute and deliver all other documents necessary to effectuate these transactions.
Requested, Susan T. Morakalis, General Counsel, STM:EMA:BJD:NOC:nl
Recommended, John P. Murray, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for May 7, 2026
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