TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 7, 2020
COMMITTEE ON STORMWATER MANAGEMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to amend Intergovernmental Agreement with the Village of Franklin Park and Cook County Land Bank Authority for the acquisition of flood prone properties in the Village of Franklin Park (16-IGA-13) (As Revised)
Body
Dear Sir:
Authorization is requested to amend the Intergovernmental Agreement (IGA) with the Village of Franklin Park (Village) and Cook County Land Bank Authority (Land Bank) for the acquisition of flood prone properties located along Silver Creek (16-IGA-13).
On March 15, 2018, the Board of Commissioners granted authority to enter into an IGA with the Village and Land Bank, with payment made to the Land Bank in an amount not to exceed $4,681,280.00. The IGA between the District, Village, and Land Bank was fully executed on October 29, 2018.
According to the IGA, the appraised value of the parcels constitutes the offered purchase price for the parcels (the “Initial Purchase Price”). The Village and the Land Bank are responsible for any funds paid to the parcel owners above the Initial Purchase Price. The IGA includes a formula that restricts the District’s reimbursement for any property acquired to $4,681,280.00 divided by the total appraised value of all the properties listed in the IGA, not to exceed 100%.
Since the IGA was executed, the Village and Land Bank have informed the District that they are unable to contribute funds towards the Initial Purchase Price of the parcels, noting that the Village’s previously submitted funding request had an error in that it was missing the cost of one home. Due to the above described circumstances the calculated reimbursement amount the District was to provide for each property is 84.91%. When this partnership was being developed the Village and the Land Bank did not anticipate or budget to provide the difference of 15.09% of the initial purchase price of each property. The District’s intent was to cover 100% of the Initial purchase price of properties acquired.
Accordingly, the Village and Land Bank have requested the IGA be amended to allow the District to provide 100% of the initial purchase price of each property acquired in an amount not to exceed $4,681,280.00. The Village and Land Bank will still be required to cover all other costs associated with the acquisition of flood-prone properties and perform all obligations set forth in the IGA, which include: paying for appraisals and the buyers’ closing costs, obtaining federal, state, local permits, paying for the cost of maintaining the escrow, paying for demolishing and relocating the structures, converting the parcels to open space, ensuring public ownership, providing maintenance, and transferring ownership from the Land Bank to the Village.
Based on the foregoing, the Engineering Department recommends that the District be authorized to amend the Intergovernmental Agreement with the Village of Franklin Park and Cook County Land Bank Authority such that the District contributes 100% of the initial purchase price for each property acquired in an amount not to exceed $4,681,280.00 for the acquisition of flood prone properties along Silver Creek.
It is requested that the Board of Commissioners authorize and direct the Chairman of the Committee on Finance and the Clerk to execute the amendment to the IGA after it is approved by the Director of Engineering as to technical matters and by the General Counsel as to form and legality.
Requested, Catherine A. O’Connor, Director of Engineering,
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 May 7, 2020