TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 16, 2016
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authorization to accept initial annual rental bid for Contract 16-361-12 (Re-Bid) Proposal to Lease for 36-years approximately 0.535 acres of District real estate located at 20 Harbor Drive in Wilmette, Illinois; North Shore Channel Parcel 1.14 from the Wilmette Harbor Association in the amount of $91,292.00
Body
Dear Sir:
At its meeting of December 17, 2015, the Board of Commissioners (“Board”) authorized the advertisement of Contract 16-361-11 for public tender of bids a 36-year lease on 0.535 acres of District real estate located at 20 Harbor Drive in Wilmette, Illinois and known as North Shore Channel Parcel 1.14. The minimum initial annual rental bid was established at $138,500.00 which represented 10% of the highest of the three appraised values. One bid was received for the subject proposal and was opened on January 26, 2016. The bid was received from the Sheridan Shore Yacht Club (“Sheridan Shore”) for a minimum initial annual rental bid of $140,207.00. Thereafter, Sheridan Shore advised staff that such rental payments would not be sustainable under a new lease and as a result, withdrew its bid. Thereafter the Wilmette Harbor Association (“WHA”) requested to lease the subject site. The WHA leases the adjacent Wilmette Harbor for the mooring of boats and harbor dredging operations under a lease that commenced in 2013 and expires in 2052. A 36-year lease is being recommended so that this lease can terminate contemporaneously with WHA’s lease on the Wilmette Harbor.
On April 7, 2016, the Board amended its Orders of December 17, 2016, by authorizing a variance of its policy requiring that the minimum initial annual rental bid under a lease be established at 10% of the appraised fair market value and instead established the minimum initial annual rental bid at the statutory minimum of 6% of the highest appraised value. The minimum bid was thereby established at $83,100.00.
One bid was received for the subject proposal and was opened on May 24, 2016. The bid was received from the WHA for a minimum initial annual rental bid of $91,292.00 (6.59148% of the appraised fair market value). The WHA’s proposed use of the site under a lease is for harbor operations, a social club, and providing food and beverage services. The WHA is therefore requesting approval to serve and sell alcohol. A District tenant may serve and sell alcohol if approved by the Board and if a lease is for a term of at least 20 years.
The Finance Department has reviewed the WHA’s financial and company background information and has reported that it demonstrates the ability to meet its financial obligations under the new proposed lease.
It is requested that the Executive Director recommended to the Board of Commissioners that it accept the initial annual rental bid for Contract 16-361-12 (Re-Bid) Proposal to Lease for 36-years approximately 0.535 acres of District real estate located at 20 Harbor Drive in Wilmette, Illinois and known as North Shore Channel Parcel 1.14 from the Wilmette Harbor Association in the amount of $91,292.00.
It is 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 has been approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:SM:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement and Materials Management
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for June 16, 2016
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