TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 1, 2012
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to enter into a 39-year lease with the Chicago Park District on 1.87 acres of District real estate located at Devon Avenue and McCormick Boulevard in Chicago; North Shore Channel Parcel 8.06 for parking and possible park expansion purposes. Consideration shall be an annual rental of $78,000.00
Body
Dear Sir:
The Chicago Park District ("CPD") has requested to lease 1.87 acres of District real estate located at Devon Avenue and McCormick Boulevard in Chicago for public parking and possible park expansion purposes of the adjacent bike path leasehold. Parcel 8.06 is currently developed as a parking lot. Attached is an aerial photograph submitted by CPD as its proposed site plan.
CPD has indicated that it has not yet obtained funding to design and develop the site in accordance with the attached site plan. The site plan portrays CPD using half of the site for public parking with the remainder as passive recreation. CPD has indicated that once it obtains funding, it anticipates that the attached site plan will take approximately one-year to design and develop.
The technical departments have previously indicated there are no objections to leasing this parcel of real estate. The term of the lease shall be 39-years.
As the CPD is a municipal corporation, the District's leasing statute allows it to enter into leases through negotiation, rather than by award pursuant to statutory leasing procedures. District policy provides that the rental consideration under a negotiated lease when not used for public recreational purposes be established at 6% of the site's appraised fair market value. The appraised fair market value of the site is $1,300,000.00. Because the site will be used for public parking, current policy requires that the annual rent for the site be established at 6% of $1,300,000.00 or $78,000.00.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve a 39-year lease agreement with the Chicago Park District on 1.87 acres of District real estate located at Devon Avenue and McCormick Boulevard in Chicago and known as North Shore Channel Parcel 8.06. Consideration shall be an annual rental of $78,000.00.
It is also 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 the lease agreement after it is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM:bh
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Terrence 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 November 1, 2012
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