TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 5, 2008
COMMITTEE ON REAL ESTATE
Mr. Richard Lanyon, General Superintendent
Title
Authority to Consent to Assignment of Sublease between PDV Midwest Refining, LLC and Chicago Carbon Company to Oxbow Midwest Calcining LLC on a portion of PDV’s 3.63-acre leasehold at 135th Street and New Avenue, in Lemont, Will County, Illinois; Main Channel Parcel 19.08. Consideration shall be a $2,000.00 document preparation fee
Body
Dear Sir:
This letter serves as a companion to a letter on the June 5, 2008 agenda requesting authority to consent to District lessee, PDV Midwest Refining, LLC’s (PDV) sublease to Chicago Carbon Company (CCC) on a 20% portion of its 3.63-acre leasehold at 135th Street and New Avenue, in Lemont, Will County, Illinois; Main Channel Atlas Parcel 19.08. The sublease between PDV and CCC commenced January 1, 2006 and expires upon PDV’s lease expiration date of December 31, 2044. The property is used for barge loading and unloading of petroleum coke products and in conjunction with PDV’s adjacent refinery site.
The companion letter requesting authority to consent to the sublease between PDV & CCC rectifies an unauthorized sublease between the two parties and applies the District’s policy of collecting 100% of all sublease fees received by or due and owing PDV from CCC.
PDV and CCC have now advised that CCC is selling all of its assets to Oxbow Midwest Calcining LLC (Oxbow), including the sublease agreement between PDV and CCC. Consent to assign the sublease from CCC to Oxbow is therefore being requested. Oxbow will assume the same activities as CCC under the sublease, i.e., loading and unloading of barges with petroleum coke products. Under the sublease the District will be receiving 50% of the entire sublease rental, which is currently $7,375.00. Additionally, the District will assess a $2,000.00 document preparation fee.
It is requested that the General Superintendent recommend to the Board of Commissioners that it approve and authorize the subject assignment of sublease between PDV Midwest Refining, LLC and Chicago Carbon Company to Oxbow Midwest Calcining, LLC on a portion of PDV’s 3.63-acre leasehold at 135th Street and New Avenue, in Lemont, Will County, Illinois; Main Channel Parcel 19.08, subject to the terms and conditions stated herein, for a consideration of a $2,000.00 document preparation fee.
It is further requested that the General Superintendent recommend to the Board of Commissioners that it authorize and direct the Chairman of the Committee on Finance and its Clerk to execute the form of consent after it is approved by the Attorney as to form and legality.
Requested, Frederick M. Feldman, Attorney, FMF:CL:STM:sd
Recommended, Richard Lanyon, General Superintendent
Respectfully Submitted, Terrence J. O’Brien, Chairman Committee on Real Estate Development
ORDERED passed by affirmative roll call vote of a majority of the Commissioners present this June 5, 2008. Approved, President Terrence J. O’Brien
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