TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 21, 2026
COMMITTEE ON REAL ESTATE
Mr. John P. Murray, Executive Director
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Consent to a partial assignment of lease from the Village of Crestwood, to the Village of Crestwood and ABS Properties, LLC as co-tenants, with respect to 2.016 acres of the Village’s 7.61-acre leasehold located south of the Cal-Sag Channel and west of Cicero Avenue in Crestwood, Illinois; Cal-Sag Channel Parcel 11.04 (eastern portion). Consideration shall be an initial annual fee of $10.00
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Dear Sir:
The Village of Crestwood (“Village”) leases 7.61 acres of District real estate located south of the Cal-Sag Channel and west of Cicero Avenue in Crestwood, Illinois, known as Cal-Sag Channel Parcel 11.04 (eastern portion) (“Lease”). The Lease commenced in 2017 and expires in 2077 and was procured through the statutory leasing process. The Village’s current annual rent is $202,350.59. The Lease allows for mixed use retail development. Any sublease or partial assignment of lease requires the District’s written consent.
Accordingly, the Board has previously consented to the assignment of a 2.60-acre portion to the Village and Aldi Inc. as co-tenants, and to the assignment of a 2.04-acre portion to the Village and Chick-fil-A as co-tenants. Aldi Inc. and Chick-fil-A continue to operate at these locations.
The Village is now requesting the District’s consent to assign a 2.016-acre portion of the remaining 2.97 undeveloped acres to the Village and ABS Properties, LLC (“ABS”) as co-tenants. ABS plans to construct and operate a food service equipment and beverage distribution facility and associated improvements on this portion of the leasehold. The Village and ABS will be responsible for ensuring compliance with all applicable state and local laws for the construction and operation of such a facility.
Under the Lease, in addition to the base annual rent, the District will be entitled to 15% of the value that the Village receives from ABS in excess of the Village’s proportionate share of the annual rent for the 2.016 acres. The initial annual rent from ABS will be less than what the Village is currently paying for the 2.016 acres and therefore there is no additional compensation owed to the District for the 2.016 acres at this time.
The District’s technical departments have reviewed this request and have no objections thereto.
It is requested that the Executive Director recommend to the Board of Commissioners that it consent to a partial assignment of lease from the Village of Crestwood, to the Village of Crestwood and ABS Properties, LLC as co-tenants, with respect to 2.016 acres of the Village’s 7.61-acre leasehold located south of the Cal-Sag Channel and west of Cicero Avenue in Crestwood, Illinois; Cal-Sag Channel Parcel 11.04 (eastern portion). Consideration shall be an initial annual fee of $10.00.
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 Consent to Partial Assignment of Lease Agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:MSZ:vp
Recommended, John P. Murray, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for May 21, 2026
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