TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 1, 2018
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Acting Executive Director
Title
Authority to advertise Contract 18-366-11 for public tender of bids a ten (10) year lease on approximately 1.90 acres of District real estate located north of the Cal-Sag Channel and west of Archer Avenue in Lemont, Illinois; Cal-Sag Channel Parcel 1.03. The minimum initial annual rental bid shall be established at $55,800.00
Body
Dear Sir:
On July 12, 2018, the Board of Commissioners authorized the commencement of statutory procedures to lease approximately 1.90 acres of District real estate located north of the Cal-Sag Channel and west of Archer Avenue in Lemont, Illinois; Cal-Sag Channel Parcel 1.03 for a ten (10) year term. The site is currently vacant. The lead applicant, Route 83 Properties, LLC (“Route 83”), has requested to lease the site for truck parking and storage of construction equipment in conjunction with its construction business on privately owned adjacent land.
Pursuant to statute, the lead applicant, Route 83, has submitted two appraisals and the Law Department obtained a third appraisal as follows:
Appraiser Value
CohnReznick
Patricia McGarr, MAI $558,000.00
(District’s Appraiser)
Real Valuation Group, LLC
Edward Kling, MAI $410,000.00
David W. Phillips and Company
Timothy Sullivan, MAI $393,000.00
It is recommended that the subject real estate’s fair market value be based upon the highest of the three appraisals and established at $558,000.00, and that the minimum initial annual rental bid be established at 10% of the property’s fair market value or $55,800.00.
It is further recommended that the Acting Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of the following orders:
1. The real estate comprising approximately 1.90 acres of District real estate located north of the Cal-Sag Channel and west of Archer Avenue in Lemont, Illinois; Cal-Sag Channel Parcel 1.03, as depicted in the exhibit attached hereto, be declared surplus and not needed for the District’s corporate purposes and available for lease as set forth herein.
2. The fair market value of the approximately 1.90 acres of real estate be established at $558,000.00, and that the minimum initial annual rental be established at 10% thereof or $55,800.00.
3. The Director of Procurement and Materials Management be authorized to advertise said approximately 1.90 acres of real estate as available for lease for a term of ten (10) years at the minimum initial annual rental bid of $55,800.00, and report the results of the bidding to the Board of Commissioners for further action.
It is requested that the Acting Executive Director recommend to the Board of Commissioners that it authorize the Director of Procurement and Materials Management to advertise Contract 18-366-11 for public tender of bids a ten (10) year lease on approximately 1.90 acres of District real estate located north of the Cal-Sag Channel and west of Archer Avenue in Lemont, Illinois; Cal-Sag Channel Parcel 1.03. The minimum initial annual rental bid shall be established at $55,800.00.
Requested, Susan T. Morakalis, General Counsel, STM:CMM:MLD:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for November 1, 2018
Attachment