TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 20, 2019
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
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Authority to: (1) grant a 25-year, 14,430± sq. ft., non-exclusive easement to Wood River Pipe Lines LLC to construct, reconstruct, operate, maintain, repair and remove a 14’’ subterranean petroleum pipeline traversing Main Channel Parcels 31.02 and 31.03, the Main Channel and the Des Plaines River; (2) issue a 12-month, 21,375 sq. ft. permit to Wood River Pipe Lines LLC for construction staging on Main Channel Parcels 31.02 and 31.03; and (3) terminate an existing easement agreement dated June 23, 1996, between the District and Wood River Pipe Lines LLC traversing Main Channel Parcels 31.01, 31.02, 31.03, the Main Channel and the Des Plaines River in Willow Springs, Illinois. Consideration shall be an initial annual easement fee of $6,027.31 and a one-time permit fee of $5,000.00 (As Revised)
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Dear Sir:
Since 1971, Wood River Pipe Lines LLC (“Wood River”), a subsidiary of Buckeye Partners, L.P., and its predecessors have been granted a series of easements to operate and maintain a 14’’ subterranean petroleum pipeline on 31,875± sq. ft. of District land traversing Main Channel Parcels 31.01, 31.02, 31.03, the Main Channel and the Des Plaines River in Willow Springs, Illinois. The pipeline delivers jet fuel to O'Hare International Airport. The current easement commenced June 23, 1996, expires June 22, 2021, and has a current annual easement fee of $6,027.31.
The Illinois State Toll Highway Authority (“ISTHA”) is constructing system-wide repairs and improvements to I-294 from Balmoral Avenue in Rosemont to 95th Street in Oak Lawn, including the reconstruction and widening of the I-294 Mile Long Bridge (“Bridge”) which spans the Main Channel, the Des Plaines River, and Main Channel Parcels 31.01, 31.02, and 31.03 in Willow Springs. On April 18, 2019, the Board of Commissioners authorized the sale of a 17.033-acre portion of Main Channel Parcel 31.01 to ISTHA to expand the Bridge. This 17.033-acre section contains a portion of Wood River’s easement, which now requires rerouting due to ISTHA’s project.
ISTHA is requiring that the pipeline be relocated from the east side of the Bridge to the west side of the Bridge. In response, Wood River has made three requests: (1) a new and relocated 25-year, non-exclusive easement to construct and operate a 14’’ subterranean pipeline on 14,430± sq. ft. of District real estate west of I-294 on Main Channel Parcels 31.02, 31.03, the Main Channel and the Des Plaines River; (2) a 12-month permit for construction staging to remove certain portions and leave in place other portions of its existing pipeline; and (3) terminate its existing easement. Before its existing easement is terminated, Wood River shall complete a Phase II Environmental Site Assessment of the existing easement premises and if necessary remediate said premises to their original condition.
Parcels 31.02 and 31.03 are under lease to the Cook County Forest Preserve District under two separate leases until March 31, 2033, and April 30, 2043, respectively. Accordingly, the Forest Preserve’s consent is required for the new easement. Wood River is also working with ISTHA and the Forest Preserve to obtain additional land-use rights it needs from each agency to install the relocated pipeline and remove the existing pipeline.
The District’s technical departments have reviewed Wood River’s requests and have no objections thereto. An initial annual easement fee of $6,027.31 is recommended, which represents the fair market value of the land based upon recent appraisals of nearby comparable sites. A one-time permit fee of $5,000.00 is recommended.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the: (1) grant of a 25-year, 14,430± sq. ft., non-exclusive easement to Wood River Pipe Lines LLC to construct, reconstruct, operate, maintain, repair and remove a 14’’ subterranean petroleum pipeline traversing Main Channel Parcels 31.02 and 31.03, the Main Channel and the Des Plaines River; (2) issuance of a 12-month, 21,375 sq. ft. permit to Wood River Pipe Lines LLC for construction staging on Main Channel Parcels 31.02 and 31.03; and (3) termination of an existing easement agreement dated June 23, 1996, between the District and Wood River Pipe Lines LLC traversing Main Channel Parcels 31.01, 31.02, 31.03, the Main Channel and the Des Plaines River in Willow Springs, Illinois. Consideration shall be an initial annual easement fee of $6,027.31 and a one-time permit fee of $5,000.00.
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 said easement agreement, permit agreement and termination of easement agreement after each is respectively approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:JJZ:JAW:vp
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 20, 2019
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