TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 19, 2024
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to grant Arco Midcon LLC a 25-year, approximately 88,616± sq. ft. non-exclusive easement to continue to install, operate, maintain, repair, rehabilitate and remove a 12-inch petroleum products pipeline located across the Cal-Sag Channel and portions of Cal-Sag Channel Parcels 12.02, 12.06, 12.09, 13.03, and 13.04 in Alsip and Crestwood, Illinois. Consideration shall be an initial annual fee of $22,154.00
Body
Dear Sir:
Arco Midcon LLC (“Arco”) has owned and operated a subterranean 12-inch diameter petroleum pipeline on District land since 1954 under an easement agreement. The easement covers an approximately 88,616± sq. ft. area of District land across the Cal-Sag Channel and portions of Cal-Sag Channel ("CSC") Parcels 12.02, 12.06, 12.09, 13.03, and 13.04 in Alsip and Crestwood, Illinois. The current easement, as extended, expires December 16, 2024. The current annual easement fee is $6,419.33.
Arco has requested a new 25-year, non-exclusive easement to continue to install, operate, maintain, repair, rehabilitate and remove the pipeline on the same easement premises with no changes to the existing easement or infrastructure. The referenced CSC Parcels are vacant.
The District’s technical departments have reviewed Arco’s request and have no objections thereto. An initial annual easement fee of $22,154.00 is recommended. That amount represents 10% of the easement premises’ fair market value based on a recent appraisal.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the District to grant Arco Midcon LLC a 25-year, approximately 88,616± sq. ft. non-exclusive easement to continue to install, operate, maintain, repair, rehabilitate and remove a 12-inch petroleum products pipeline located across the Cal-Sag Channel and portions of Cal-Sag Channel Parcels 12.02, 12.06, 12.09, 13.03, and 13.04 in Alsip and Crestwood, Illinois. Consideration shall be an initial annual fee of $22,154.00.
It is further 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 after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:JAW: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 September 19, 2024
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