TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 16, 2023
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to advertise Contract 23-363-11 for public tender of bids for a 3-year lease on 2.5 acres of District real estate located at 15680 Canal Bank Road in Lemont, Illinois, and known as Main Channel Parcel 23.10. The minimum initial annual rental bid shall be established at $60,000.00
Body
Dear Sir:
On December 1, 2022, the Board of Commissioners authorized the commencement of statutory procedures to lease District real estate located at 15680 Canal Bank Road in Lemont, Illinois, and known as Main Channel Parcel 23.10, for a 3-year term. DCC Propane currently leases the site for the operation of a retail propane distribution business, including bulk storage. DCC Propane and its predecessors have been occupying the site since 1984, with the current lease expiring May 31, 2023. The current annual rent is $55,216.35. If DCC Propane is the successful bidder, it intends to continue the same use.
Pursuant to statute, the lead applicant, DCC Propane, submitted two appraisals and the Law Department obtained a third appraisal, as follows:
Appraiser Value
Appraisal Associates $600,000.00
William Enright, MAI
(District’s Appraiser)
SVS Appraisal $215,000.00
Salvatore A. Louise, MAI
LaSalle Appraisal Group, Inc. $165,000.00
Hugh T. Edfors, MAI
It is recommended that the subject real estate’s fair market value be based upon the highest of the three appraisals and established at $600,000.00, and that the minimum initial annual rental bid be established at 10% of the property’s fair market value or $60,000.00.
It is further recommended that the Executive Director recommend to the Board of Commissioners that it
authorize and approve the issuance of the following orders:
1. The real estate, which comprises 2.5 acres, located at 15680 Canal Bank Road in Lemont, Illinois, and known as Main Channel Parcel 23.10, is not currently needed for the District’s corporate purposes and is available for lease.
2. The fair market value of the 2.5 acres of real estate is established at $600,000.00, and that the minimum initial annual rental be established at 10% thereof or $60,000.00.
3. The Director of Procurement and Materials Management is authorized to advertise 2.5 acres of real estate as available for lease for a 3-year term at the minimum initial annual rental bid of $60,000.00 and report the results of the bidding to the Board of Commissioners for further action.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the Director of Procurement and Materials Management to advertise Contract 23-363-11 for public tender of bids for a 3-year lease on 2.5 acres of District real estate located at 15680 Canal Bank Road in Lemont, Illinois and known as Main Channel Parcel 23.10. The minimum initial annual rental bid shall be established at $60,000.00.
Requested, Susan T. Morakalis, General Counsel, STM:MTC:MSZ
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Marcelino Garcia, 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 March 16, 2023
Attachments