TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 5, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to accept sole initial annual rental bid of $28,500.00 from and enter into a lease with NuStar Terminal Services, Inc. for a 20-year term on approximately 6.05 acres of District real estate located near 131st Street and Kedzie Avenue in Blue Island, Illinois; Cal-Sag Channel Parcel 13.02 and part of Parcel 13.04.
Body
Dear Sir:
At its meeting of February 16, 2012, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for public tender of bids a lease of approximately 6.05 acres of District real estate located near the intersection of 131st Street and Kedzie Avenue in Blue Island, Illinois, and known as Cal-Sag Channel Parcel 13.02 and part of Parcel 13.04. The minimum acceptable annual rental bid was established at $28,500.00.
One bid was received for the subject proposal and was opened on March 13, 2012. The sole bid was received from the current tenant, NuStar Terminal Services, Inc. ("NuStar"), for a minimum initial annual rental bid of $28,500.00 (10% of the appraised fair market value).
NuStar currently occupies the site under a permit set to expire April 19, 2012. Under its permit, NuStar operates a barge dock and ancillary piping. NuStar's proposed use of the site under a new lease is for continued use for the same purposes under its permit. The site is improved with a barge dock, 2 access roadways and 4 pipelines.
The Finance Department has reviewed NuStar's financial information and has reported that it has demonstrated the ability to meet its financial obligations under the new proposed lease.
It is requested that the Executive Director recommend to the Board of Commissioners that it accept the sole bid of $28,500.00 submitted by NuStar Terminal Services, Inc. and award it a 20-year lease of approximately 6.05 acres of District real estate located near the intersection of 131st Street and Kedzie Avenue in Blue Island, Illinois, and known as Cal-Sag Channel Parcel 13.02 and part of Parcel 13.04.
It is also requested that the Executive Director recommend to the Board of Commissioners that it authorize 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:STM:rg
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, 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 April 5, 2012
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