TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 16, 2020
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to negotiate an Intergovernmental Agreement with the City of Chicago to reroute a section of the West Side 9 Interceptor in Chicago, Illinois (Deferred from the June 18, 2020 Board Meeting)
Body
Dear Sir:
The District owns and operates an intercepting sewer, known as the West Side 9 Interceptor, that serves approximately 770 acres of Chicago (“Interceptor”). A portion of the Interceptor is located within a planned redevelopment in the City of Chicago known as Lincoln Yards. The proposed redevelopment is of a vacant 53-acre site into office, residential, and retail space along the North Branch of the Chicago River bounded by the Kennedy Expressway to the west, Webster Avenue to the north, Clybourn Avenue to the east, and North Avenue to the south. Sterling Bay is the primary developer (“Developer”).
As part of the proposed redevelopment, the City of Chicago and the Developer have requested to reroute a certain section of the District’s Interceptor at the site. The reroute includes the construction of a new section of an intercepting sewer, the abandonment of the old sewer, and the construction of a new City sewer to serve the redevelopment area.
An Intergovernmental Agreement (“IGA”) with the City of Chicago is necessary to ensure coordination between the District and the City specifically relating to the sewer reroute. In particular, the purpose of this IGA is to ensure that ownership, operation, and maintenance responsibilities are clearly established, that District infrastructure is protected, and that public sewer services continue to be provided at all times. Under the IGA, the District will not be responsible for any costs or fees in the construction of the new interceptor, the abandonment of the existing interceptor, or the construction of the new City sewer. The District’s maintenance responsibilities for its Interceptor will resume once the reroute is completed to the District’s engineering standards.
In addition to the IGA, the Developer must apply for a Facility Connection Authorization (“FCA”) from the District under the Watershed Management Ordinance (“WMO”). The Developer has submitted an FCA application, which is currently under review by the technical departments.
It is hereby requested that the Board of Commissioners authorize the District to negotiate an IGA with the City of Chicago to reroute a section of West Side 9 Interceptor in Chicago, Illinois. Once the parties agree in principle, authority to enter into an IGA will be sought from the District’s Board of Commissioners.
Requested, Susan T. Morakalis, General Counsel, STM:EMA:BJD
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 July 16, 2020
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