TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 2, 2012
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to grant a 25-year, 290.4 feet x 150 feet easement to Prairie Power, Inc. to continue to operate, maintain, repair, reconstruct and remove an electrical substation on District real estate along County Route 5 in Fulton County, Illinois. Consideration shall be an annual fee of $2,500.00.
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Dear Sir:
Prairie Power, Inc. (“Prairie Power”) f/k/a Western Illinois Power Cooperative, Inc. (“WIPCO”) operates and maintains an electrical substation (c/k/a “Wee-Ma-Tuk”) on approximately one acre of District real estate in Fulton County, Illinois, under a 35-year easement. The Wee-Ma-Tuk substation provides electrical voltage to one of Prairie Power’s distribution cooperative members in Fulton County. Consideration under the current easement was a one-time lump sum of $553.83. Prairie Power is now requesting a new 25-year easement to continue to operate and maintain the substation. Attached is a map depicting the subject easement area.
The District’s technical departments have reviewed Prairie Power’s request for a new 25-year easement at the subject location and have no objections thereto. A minimum annual fee of $2,500.00 is being recommended because the annual fee obtained by the District for the closest pasture field leased to private parties in the period from 2009 through 2011 in Fulton County is $37.50 per year per acre. As the easement area comprises one acre, such would yield an annual fee of no more than $37.50. As such fee is less than the District’s standard minimum annual fee of $2,500.00, the District’s minimum annual fee is being recommended in this instance.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of a 25-year, 290.4 feet x 150 feet easement to Prairie Power, Inc. to continue to operate, maintain, repair, reconstruct and remove an electrical substation on District real estate located along County Route 5 in Fulton County, Illinois. Consideration shall be an annual fee of $2,500.00.
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 said easement agreement on behalf of the District after it is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM:MM: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 February 2, 2012
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