TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 18, 2020
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authorization to: (1) enter into an Intergovernmental Agreement with the Illinois State Toll Highway Authority and City of Chicago relating to ISTHA’s Elgin O’Hare Western Access Project; (2) grant a permanent, 5.355 acre non-exclusive easement to ISTHA on the District’s Touhy Avenue Reservoir site in Des Plaines, Illinois for construction of a new I-490 overpass and for access thereto; and (3) grant a 5-year, 5.236 acre non-exclusive easement to ISTHA for construction access and staging and construction of a temporary culvert. Consideration shall be $352,000.00 for the permanent easement and $292,000.00 for the temporary easement for a total of $644,000.00
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Dear Sir:
The Illinois State Toll Highway Authority (“ISTHA”) is constructing a new toll road known as I-490 along the west side of O’Hare International Airport which will connect I-90 with I-294 as part of ISTHA’s Elgin O’Hare Western Access Project (“Project”). The Project includes constructing an I-490 overpass that will span the Touhy Avenue Reservoir (“Reservoir”) site in Des Plaines, Illinois. The District owns the northern portion of the Reservoir site. The remainder of the site is owned by the City of Chicago (“City”). The Reservoir was built in the late 1980’s to reduce flooding caused by the Willow-Higgins Creek (“Creek”) in Cook County. A portion of the Creek runs the entire length of the Reservoir site. Since 2001, the District and the City have operated the Reservoir site pursuant to a written agreement between them governing the design, construction, operation and maintenance of the Reservoir and the Creek (“Agreement”). Under the Agreement, the District is responsible for all maintenance costs related to the Reservoir, except those related to the Reservoir’s spillways, diversion structures, pump house and pump equipment, which are shared equally by the District and the City. Although not specified in the Agreement, maintenance of the Creek is shared equally by the District and the City.
ISTHA has requested to enter into an Intergovernmental Agreement (“IGA”) with the District and City for the Project. Under the IGA, the District will grant two easements to ISTHA. The IGA will also clarify that the District and the City shall share equally in all costs related to the future maintenance and reconstruction of the Creek’s banks located within the Reservoir site. Several portions of the banks are currently in need of maintenance or reconstruction. At the District and City’s request, ISTHA has agreed to repair such portions as part of the Project, provided the District and City pay for the work. ISTHA’s construction cost estimate for completing the work is $460,000.00. Under the IGA, the District and City will each be responsible for paying 50% of the actual cost of such work, in an amount not to exceed $230,000.00 each. ISTHA has indicated that the Project, including repairing the Creeks’ banks, contains MBE/WBE/VBE goals. The MBE/WBE utilization goals for the Project were set at 34%, and VBE participation goals for the Project were set at 0.5%. ISTHA has represented that the contract for the Project was awarded pursuant to its statutory competitive bidding process and that both goals were met upon award of the contract.
Additionally, ISTHA has requested a permanent non-exclusive easement and a temporary 5-year non-exclusive easement to construct an overpass on the Reservoir site. The permanent easement comprises 5.355 acres of District real estate located at the Reservoir site. The permanent easement will provide the necessary right-of-way for the I-490 overpass and allow ISTHA to reconstruct, maintain, and access the overpass. The 5-year easement comprises 5.236 acres of District real estate located at the Reservoir site. The temporary easement will provide for construction access and staging and construction of a temporary culvert. The culvert will drain into a temporary detention area to be located on the City’s portion of the Reservoir site, which will allow the Reservoir to maintain full capacity and function for the duration of the Project. Upon completion of the Project, ISTHA will remove the temporary detention area and culvert and restore the Reservoir to its original capacity and function.
The technical departments have reviewed these requests and have no objections thereto, provided that the Reservoir continues to maintain full capacity and function for the duration of the Project.
In accordance with District policy, each party obtained an appraisal to establish the fair market value of the easements to be acquired. The appraisals were as follows:
Appraiser Value
Chicago Metro Realty Valuation Corp.
Nicholas F. Solano, MAI $490,000.00
(ISTHA Appraiser)
CohnReznick, LLP
Patricia L. McGarr, MAI $644,000.00
(District Appraiser)
ISTHA has agreed to use the District’s valuation for acquiring these easements.
It is recommended that the total fair market value of the property interests to be acquired by ISTHA be established at $644,000.00, which includes $352,000.00 for the permanent easement and $292,000.00 for the 5-year easement.
It is requested that the Executive Director recommend to the Board of Commissioners that it pass the following Orders:
1. That a permanent, 5.355 acre non-exclusive easement on the eastern portion of the Reservoir Site be granted to ISTHA for the I-490 overpass and to allow ISTHA to reconstruct, maintain, and access the overpass;
2. That a 5-year, 5.236 acre non-exclusive easement on the western portion of the Reservoir Site be granted to ISTHA for construction access and staging and construction of a temporary culvert;
3. That the total fair market value of said property interests be established at $644,000.00, which includes $352,000.00 for the permanent easement and $292,000.00 for the 5-year easement;
4. That it authorize the District to enter into an IGA with ISTHA and the City and Easement Agreements with ISTHA to effectuate the grant of easements required for the Project, with all agreements embodying the customary terms and conditions set forth above;
5. That the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute said IGA and Easement Agreements and any other documents necessary in effecting the aforesaid grant of easements for said real estate after same have been approved by the General Counsel as to form and legality; and
6. That the General Counsel be authorized and directed to execute and deliver all other documents necessary to effectuate said IGA and Easement Agreements.
Requested, Susan T. Morakalis, General Counsel, STM:EMA:CMM: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 18, 2020
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