TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 5, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to advertise for the public tender of bids a 39-year lease on approximately 0.82 acres of District real estate located at 536 Sheridan Road in Wilmette, Illinois; North Shore Channel Parcel 1.01. The minimum initial rental bid shall be established at $90,000.00.
Body
Dear Sir:
On January 19, 2012, the District's Board of Commissioners authorized the commencement of statutory procedures to lease approximately 0.82 acres of District real estate located at 536 Sheridan Road in Wilmette, Illinois. The site has been occupied by the National Spiritual Assembly of Baha'i''s ("Baha'i'") under a series of permits and leases since 1940. The site is currently used as an access roadway, a pedestrian walkway under the Sheridan Road Bridge and an automobile parking lot. The annual permit fee for the subject property is $2,000.00.
In accordance with statute, Baha'i', the lead applicant, submitted two appraisals and the District obtained a third appraisal. The appraisal results are as follows:
Appraiser Value
JCS Real Estate Services, Inc. $195,000.00
John C. Satter, MAI
Illinois Appraisal Services, Inc. $455,000.00
Lawrence J. Starkman, MAI
Appraisal Associates $900,000.00
William J. Enright, MAI
(District's Appraiser)
It is recommended that the subject property's fair market value be based upon the highest of the three appraisals and established at $900,000.00 and that the minimum annual rental bid be established at $90,000.00.
It is further recommended that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of the following orders:
1) The real estate consisting of approximately 0.82 acres located at 536 Sheridan Road in Wilmette, Illinois; and known as North Shore Channel Parcel 1.01, depicted in the exhibit attached hereto, be declared surplus and not currently needed for the District's corporate purposes and available for lease as set forth herein.
2) The fair market value of the approximate 0.82 acres of real estate be established at $900,000.00 and that the minimum initial rental bid be established at 10% thereof, or $90,000.00.
3) The Director of Procurement & Materials Management be authorized to advertise the subject 0.82 acres of real estate as available for lease for a term of 39-years at the minimum initial annual rental bid of $90,000.00 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 for public tender of bids a 39-year lease of approximately 0.82 acres of District real estate located at 536 Sheridan Road in Wilmette, Illinois; and known as North Shore Channel Parcel 1.01. The minimum initial annual rental bid shall be established at $90,000.00.
Requested, Ronald M. Hill, General Counsel, RMH:STM:BEB
Recommended, Darlene A. LoCascio, Director of Procurement & Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman, Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for April 5, 2012
Attachment