TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 4, 2024
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to extend Lease Agreement dated September 5, 2023, with the City of Chicago on 10.7± acres of District real estate located west of the North Shore Channel between Foster Avenue and Bryn Mawr Avenue in Chicago, Illinois, known as North Shore Channel Parcels 9.09, 9.14, 9.16, and 9.17, to extend the term by two (2) months. Consideration shall be a monthly rental fee of $12,500.00
Body
Dear Sir:
On August 10, 2023, the Board of Commissioners authorized the sale of 10.7± acres of District real estate located west of the North Shore Channel between Foster Avenue and Bryn Mawr Avenue in Chicago, Illinois, known as North Shore Channel (“NSC”) Parcels 9.09, 9.14, 9.16, and 9.17 (“Subject Property”) to the City of Chicago (“City”). As the City requested immediate access to the Subject Property, the Board further authorized a short-term lease pending the sale transaction. The lease commenced September 5, 2023, and expires January 4, 2024.
District staff is currently working with the City to finalize the sale of the Subject Property. While the transaction is progressing to closing, more time is needed to effectuate the sale, including survey and title work. Therefore, a 2-month extension of the lease is necessary to allow continued access during the sale process. The City will continue to pay a monthly rental fee of $12,500.00, representing 10% of the fair market value of the Subject Property.
The District’s technical departments have reviewed this lease extension request and have no objections thereto.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize an extension of the Lease Agreement dated September 5, 2023, with the City of Chicago on 10.7± acres of District real estate located west of the North Shore Channel between Foster Avenue and Bryn Mawr Avenue in Chicago, Illinois, known as North Shore Channel Parcels 9.09, 9.14, 9.16, and 9.17, to extend the term by two (2) months. Consideration shall be a monthly rental fee of $12,500.00.
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 Extension to the Lease 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 January 4, 2024
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