TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 2, 2026
COMMITTEE ON REAL ESTATE
Mr. John P. Murray, Executive Director
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Authorization to declare District real estate as surplus and not required for corporate purposes, and to enter into a 50-year lease with the Village of Lemont for municipal and public recreational use of two parcels owned by the District located at 11 and 13 Stephen Street in Lemont, IL. Consideration shall be a one-time fee of $10.00
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Dear Sir:
The District owns four residential properties along Stephen Street in Lemont, Illinois, just west of the Lemont Water Reclamation Plant (“Lemont WRP”). The common addresses of the properties are 11, 13, 19, and 21 Stephen Street. 13 and 21 Stephen Street are noncontiguous vacant lots that were purchased by the District in 1960 when the Lemont WRP was being constructed. 11 and 19 Stephen Street are noncontiguous abandoned homes that were acquired in 2013-2014, along with several other residential properties along Stephen Street, as part of construction of Lemont WRP’s Wet Weather Reservoir and Treatment Facility and a new Stephen Street plant entryway. 11 and 19 Stephen Street were later determined to be no longer needed for that project or any Lemont WRP operations. 13 and 21 Stephen Street are also not needed for Lemont WRP’s operations.
Accordingly, the Village of Lemont (“Village”) has requested to purchase 19 and 21 Stephen Street (the two southernmost properties) and to lease for public recreational purposes 11 and 13 Stephen Street (the two northernmost properties). The purchase request is the subject of a companion transmittal letter on today’s agenda. The District’s technical departments have determined that these properties are not required for corporate purposes and have no objections to the Village’s requests. As part of these transactions, the Village has agreed to demolish the abandoned homes on 11 and 19 Stephen Street.
The Village requests a 50-year lease for 11 and 13 Stephen Street for municipal and public recreational use. The Village intends to install a no-fee public parking lot on these parcels for the use of patrons of the Centennial Trail and I & M Passage Trail. Leasing these parcels is preferable because there is District infrastructure under one parcel where access must be maintained.
A one-time nominal fee of $10.00 is recommended, as is customary for a governmental entity using District real estate for a public recreational purpose. Also, the lease will contain a provision that if the Village ever generates revenues or profits from the leasehold, rent will include an additional annual fee of 25% of the net profits derived from the site.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the District to declare as surplus, and not required for corporate purposes, District real estate located at 11 and 13 Stephen Street in Lemont, Illinois, and to enter into a 50-year lease with the Village for said parcels for municipal and public recreational use. Consideration shall be a one-time fee of $10.00.
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 lease agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:MSZ:vp
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 April 2, 2026
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