TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 15, 2025
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Acting Executive Director
Title
Authority to advertise Contract 25-360-11 for public tender of bids a 25-year lease on 21.70± acres of District real estate located east of the Egan Water Reclamation Plant in Cook County, Illinois. The minimum initial annual rental bid shall be established at $19,000.00
Body
Dear Sir:
On September 19, 2024, the Board of Commissioners authorized the commencement of statutory procedures to lease District real estate located east of the Egan Water Reclamation Plant in Cook County, Illinois. The real estate is comprised of a pond and adjacent staging area. The technical departments have confirmed that the pond is not needed for corporate use, and is therefore suitable for long-term lease.
The lead applicant, Third Pillar Solar, intends to use the pond for a floating community solar project. Only the surface rights of the parcel will be leased; the District will retain all other property rights. The parcel is located in unincorporated Cook County, so the District and Third Pillar Solar have been coordinating with Cook County regarding the proposed lease. The County has provided no objections to the lease, but has indicated that the proposed use will require a special use permit. The successful bidder will be required to secure a special use permit as part of the project development. Pursuant to statute, the lead applicant submitted two appraisals, and the Law Department obtained a third review appraisal, as follows:
Appraiser Value
CohnReznick $190,000.00
Sonia Singh, MAI
(District’s Review Appraisal)
Associated Property Counselors, LTD. $190,000.00
Dale J. Kleszynski, MAI
Polach Appraisal Group, Inc. $110,000.00
Kenneth F. Polach, MAI
It is recommended that the subject real estate’s fair market value be based upon the highest of the appraisals and established at $190,000.00, and that the minimum initial annual rental bid be established at 10% of the property’s fair market value, which is $19,000.00.
It is further requested that the Acting Executive Director recommend to the Board of Commissioners that it authorize and approve the following orders:
1. The real estate, which comprises 21.70± acres located east of the Egan Water Reclamation Plant in Cook County, Illinois, is not currently needed for the District’s corporate purpose and is available for lease.
2. The fair market value of the subject real estate is established at $190,000.00, and the minimum initial annual rent be established at 10% thereof, which is $19,000.00.
3. The Director of Procurement and Materials Management is authorized to advertise the subject real estate as available for lease for a 25-year term at the minimum initial annual rental bid of $19,000.00, and report the results of the bidding to the Board of Commissioners for further action.
It is requested that the Acting Executive Director recommend to the Board of Commissioners that it authorize the Director of Procurement and Materials Management to advertise Contract 25-360-11 for public tender of bids a 25-year lease on 21.70± acres of District real estate located east of the Egan Water Reclamation Plant in Cook County, Illinois. The minimum initial annual rental bid shall be established at $19,000.00.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:KHY:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson, Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for May 15, 2025
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