TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 5, 2012
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to enter into a 39-year lease agreement with the Mount Prospect Park District for the continued use of approximately 22.441 acres of improved District real estate located east of Elmhurst Road and south of the James C. Kirie Water Reclamation Plant in Des Plaines, Illinois, and known as Majewski Metro Park for public recreational purposes. Consideration shall be a nominal fee of $10.00 plus 25% of net profits derived from the site.
Body
Dear Sir:
The Mount Prospect Park District ("MPPD") leases approximately 22.441 acres of District real estate under a lease agreement between the District and the MPPD that commenced July 1, 1980 and, as amended, expires June 30, 2012. The leasehold is known as Majewski Metro Park. The original permitted use under the lease was for public recreational purposes and other purposes incidental thereto. The initial lease term was for 20 years. Subsequent amendments to the lease extended the term for an additional period of 12-years from July 1, 2000 to June 30, 2012, allowed for the sale of alcoholic beverages on the leasehold premises and authorized the connection of MPPD's underground irrigation system to the James C. Kirie Water Reclamation Plant's existing effluent water system for MPPD's softball and soccer fields. The District provides the water and pressure to operate MPPD's underground irrigation system. The rent under the lease is a nominal fee of $1.00.
MPPD has improved the leasehold with 7 recreational athletic fields and a field house.
MPPD has requested a new 39-year lease upon expiration of its current lease to continue to use the leasehold for the same permitted use as is allowed under its current lease including the continued permitted use of selling alcoholic beverages five times a year. A proposed improvement is an inflatable dome for an indoor golf driving range and it is recommended that the new lease allow for such use. Green infrastructure will be required to be implemented on any new or re-development during the term of the new lease. Additionally, the lease will contain a provision allowing the District, at its discretion, to design and install permeable pavement in locations agreeable to MPPD. However, any maintenance and any re-installation of the pavers will be the responsibility of MPPD.
The District's technical departments have reviewed the subject request and have reported that there is no foreseeable corporate use for the property and there are no objections to the Kirie Water Reclamation Plant continuing to providing the water and pressure to operate the MPPD's underground irrigation system for its softball and soccer fields.
It is recommended that the rent be a nominal fee of $10.00 unless such recreational use or parts thereof derive revenue (i.e., fees generated by Lessee's use of or activities on the leasehold) then the rent would be 25% of the profits derived therefrom. The "annual revenue" will allow for deductions such as certain operating expenses, capital improvement expenditures, and bond repayment.
Under 70 Illinois Compiled Statutes 2605/8c(11), said lease is terminable upon the service of a 1-year notice if the property becomes essential to the District's corporate needs.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of a 39-year lease agreement with the Mount Prospect Park District for the continued use of approximately 22.441 acres of improved District real estate located east of Elmhurst Road and south of the James C. Kirie Water Reclamation Plant in Des Plaines, Illinois, and known as Majewski Metro Park for public recreational purposes. Consideration shall be a nominal fee of $10.00 plus 25% of net profits derived from the site.
It is further requested that the Executive Director recommend to the Board of Commissioners that the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute said lease agreement after it is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel and Kenneth A. Kits, Director of Engineering; RMH:KAK:STM:NPE:rg
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Terrence J. O'Brien, Chairman Committee on Real Estate Development
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for April 5, 2012
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