TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 5, 2026
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
Title
Authority to advertise Contract 26-361-11 for public tender of bids a 10-year lease on approximately 860 sq. ft. of District real estate located at 100 E. Erie Street in Chicago, Illinois. The minimum initial annual rental bid shall be established at $8,600.00
Body
Dear Sir:
The MWRD Employees’ Credit Union (“MWRDECU”) has occupied office space at the District’s downtown location since its formation in the 1950s. The MWRDECU is a separate legal entity from the District that was established under the Illinois Credit Union Act and is regulated by the Illinois Department of Professional and Financial Regulation.
MWRDECU is in the final stages of a merger with Credit Union 1 (“CU1”), which is a credit union with a nationwide network. MWRDECU has indicated that the merger will enable CU1 to continue providing high quality financial services to District employees in the credit union. The merger is anticipated to be finalized in June 2026.
To continue serving District employees at the downtown location, CU1 has requested to lease the office space currently occupied by MWRDECU once the merger is finalized. The use of the premises will be limited specifically to financial services for District employees because the office space is part of the District’s Main Office Building, and the use must be compatible with District operations and site security. Pursuant to statute, the lead applicant submitted two appraisals, and the Law Department obtained a third review appraisal, as follows:
Appraiser Value
CBRE, Inc. $55,000.00
Chad Bosley, MAI
Newmark Valuation & Advisory $21,500.00
John Hereford, MAI
CohnReznick $55,000.00
Patricia L. McGarr, MAI
(District’s Appraiser)
It is recommended that the subject real estate’s fair market value be based upon the highest of the appraisals and established at $55,000.00. Due to the site’s unique location in downtown Chicago, the appraisers also analyzed the North Michigan Avenue rental market. The appraisal reports indicate that comparable retail rentals in the downtown office market support an annual rent amount of $8,600.00. As a result, it is recommended that the minimum annual rental bid be established at $8,600.00.
It is further requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the following orders:
1. The real estate, which comprises 860± sq. ft. of District land located at 100 E. Erie Street in Chicago, Illinois, is not currently needed for the District’s corporate purpose and is available for lease.
2. The fair market value of the subject real estate is established at $55,000.00.
3. The Director of Procurement and Materials Management is authorized to advertise the subject real estate as available for lease for a 10-year term at the minimum initial annual rental bid of $8,600.00 and report the results of the bidding to the Board of Commissioners for further action.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the Director of Procurement and Materials Management to advertise Contract 26-361-11 for public tender of bids for a 10-year lease on approximately 860 sq. ft. of District real estate located at 100 E. Erie Street in Chicago, Illinois. The minimum initial annual rental bid shall be established at $8,600.00.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:NOC:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson, Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for February 5, 2026
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