TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 4, 2015
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to grant a 25-year, non-exclusive easement to Commonwealth Edison Company on approximately 10.39 acres of District real estate located west of Pulaski Road and north of the Main Channel in Chicago, Illinois, and known as parts of Main Channel Parcels 40.02, 40.04 and 40.07, to continue to operate, maintain and remove electrical transmission lines. Consideration shall be an initial annual fee of $307,500.00
Body
Dear Sir:
Commonwealth Edison Company ("ComEd") occupied the subject area under an easement that commenced in 1949, and, as amended and extended, expired January 31, 2015. On January 22, 2015, the Board of Commissioners granted a 6-month permit to ComEd that commenced February 1, 2015, and expires July 31, 2015, to allow continued use while ComEd obtained a survey and appraisals on the easement premises. ComEd operates and maintains overhead and underground electrical transmission lines at this location. ComEd is currently paying an annual rent of $6,539.82.
ComEd has requested a new 25-year easement to continue to operate and maintain its electrical transmission lines at this location.
The District's technical departments have reviewed ComEd's request for a new easement and have no objections thereto.
A fair market value appraisal on the easement premises valued it at $3,075,000.00 Accordingly, it is recommended that the annual rent under the easement be established at $307,500.00, which represents 10% of the appraised fair market value.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the grant of a 25-year, non-exclusive easement to Commonwealth Edison Company on approximately 10.39 acres of District real estate located west of Pulaski Road and north of the Main Channel in Chicago, Illinois, and known as parts of Main Channel Parcels 40.02, 40.04 and 40.07 to continue to operate, maintain and remove electrical transmission lines. Consideration shall be an initial annual fee of $307,500.00.
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 on behalf of the District after it is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM:MM:vp
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Mariyana T. Spyropoulos, Chairman Committee on Real Estate Development
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for June 4, 2015
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