TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 16, 2022
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to issue a 3-year permit extension to Ford Motor Company for the continued use of District land c/k/a “Stony Island Drying Beds” for the temporary storage of new vehicles manufactured at the adjacent Ford Motor Company Assembly Plant. Consideration shall be a monthly permit fee of $105,600.00, subject to upward adjustments in accordance with the terms and conditions stated herein
Body
Dear Sir:
On November 4, 2010, the Board of Commissioners issued a permit to Ford Motor Company (“Ford”) for use of District land c/k/a “Stony Island Drying Beds” for the temporary storage of new vehicles manufactured at the adjacent Ford Assembly Plant. Historically, the site has been used by the District for activities related to processing biosolids, but it is not presently needed for such purposes. For operational and identification purposes, the site is divided into seven cells and comprises approximately 84.5 acres.
The current permit authorizes Ford to use cells 1 and 2 (north and south), cell 3 north, and cell 5 (north and south), comprising a total of 48 acres, for a monthly permit fee of $105,600.00. Ford may use additional cells for an additional monthly fee of $2,200 per acre if available. Ford has consistently requested and used additional cells. The permit, as extended, expires May 3, 2023.
Ford has requested to extend its permit for an additional 3-year term for the current monthly permit fee of $105,600.00. The District’s technical departments have reviewed this request and have no objections.
Ford anticipates extended need for temporary storage of newly manufactured vehicles because of the continued high demand for its vehicles. The site’s proximity to Ford’s Assembly Plant, its size, and flat surface continue to make this site desirable for Ford’s use. Ford previously requested a long-term lease of the property. However, a long-term lease is not feasible due to the possibility that the site may again be required for the District’s corporate use. The permit and its extensions are an alternative to a long-term lease. This allows the District the flexibility to terminate for any reason and coordinate Ford’s use of the site with District needs.
The fee will continue to be $2,200.00 per acre, per month. It is anticipated that the permit extension will result in minimum revenue of $105,600.00 per month based on Ford’s contemplated use of a minimum of 48 acres. The fee will be adjusted upward if Ford’s needs increase and the technical departments determine that the need can be accommodated without interference with the District’s activities at the site.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of a 3-year permit extension to Ford Motor Company for the continued use of District land c/k/a “Stony Island Drying Beds” for the temporary storage of new vehicles manufactured at the adjacent Ford Motor Company Assembly Plant. Consideration shall be a monthly permit fee of $105,600.00, subject to upward adjustments in accordance with the terms and conditions stated herein.
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 permit extension agreement on behalf of the District after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:MTC:NOC
Recommended, Brian A. Perkovich, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for June 16, 2022
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