TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 15, 2009
COMMITTEE ON REAL ESTATE
Mr. Richard Lanyon, Executive Director
Title
Authority to issue a 2-year permit extension to Illinois Mining Corporation to mine, remove, and purchase channel excavation rock from approximately 41.22 acres of District real estate located south of the Cal-Sag Channel between Cicero and Kostner Avenues in Crestwood, Illinois, and known as Cal-Sag Channel Atlas Parcel 12.05, consideration shall be $0.25 per ton of rock removed from the permit premises paid after Illinois Mining has used a credit of up to $360,000.00 for the removal of spoil from the site, including approximately 12,000 cubic yards of broken concrete previously dumped on the premises
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Dear Sir:
At its June 5, 2003 Board Meeting, the Board of Commissioners approved the issuance of a 5-year permit to Illinois Mining Corporation to mine, remove, and purchase channel excavation rock from approximately 41.22 acres of District real estate located south of the Cal-Sag Channel between Cicero and Kostner Avenues in Crestwood, Illinois, and known as Cal-Sag Channel Atlas Parcel 12.05. Consideration for the permit was a $2,000.00 document preparation fee and payment to the District of $0.25 per ton of rock removed from the premises. The permit was amended in September 2003 to provide that Illinois Mining would also remove broken concrete that had previously been fly-dumped at the site. The technical departments estimated that the site contained 12,000 cubic yards of broken concrete and it estimated the cost of removal at $360,000.00. The amended permit provided that the $0.25 per ton required to be paid to the District for removal of the channel excavation would instead first be applied as a credit to Illinois Mining until such time as it equaled $360,000.00, i.e., the estimated cost of removal of the broken concrete. Thereafter payment would be made to the District.
The subject permit was extended for an additional year and is scheduled to expire November 1, 2009. The mining and removal of excavation rock from the subject site is not yet complete and Illinois Mining has requested an additional 2-year extension of the subject permit. While the removal of the rock has taken longer than anticipated, it remains in the District’s interest to have the work continue until such time as the work is completed or a better option is presented. As of August 31, 2009, $189,016.26 credit remains.
Accordingly, it is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve a 2-year permit extension to Illinois Mining Corporation to mine, remove, and purchase channel excavation rock from approximately 41.22 acres of District real estate located south of the Cal-Sag Channel between Cicero and Kostner Avenues in Crestwood, Illinois, and known as Cal-Sag Channel Atlas Parcel 12.05. Consideration shall be $0.25 per ton of rock removed from the permit premises paid after Illinois Mining has used a credit of up to $360,000.00 for the removal of approximately 12,000 cubic yards of broken concrete previously dumped on the premises.
It is further requested that the Executive Director recommend to the Board of Commissioners that the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute said permit extension agreement after same is approved by General Counsel as to form and legality.
Requested, Frederick M. Feldman, General Counsel, FMF:CL:MIM:rg
Recommended, Richard Lanyon, Executive Director
Respectfully Submitted, Terrence J. O’Brien, 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 October 15, 2009
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