TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 17, 2021
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to pay final just compensation in the amount of $267,000.00 to acquire the partial fee interest, and permanent and temporary easements, on the real estate commonly known as 1521 North Mannheim Road and 1512 North 40th Avenue in Stone Park, Illinois, and to pay relocation costs in an amount not to exceed $270,000.00, to settle the eminent domain lawsuit entitled The Metropolitan Water Reclamation District of Greater Chicago v. Alfred Arman Sr., et al., Case No. 20L050494 in the Circuit Court of Cook County, Illinois, Account 501-50000-667330, Stormwater Management Fund
Body
Dear Sir:
On August 6, 2015, the Board of Commissioners (“Board”) adopted Ordinance No. R15-006 establishing the right-of-way for the construction, operation and maintenance of the Addison Creek Channel Improvement Project located in the municipalities of Northlake, Stone Park, Melrose Park, Bellwood, Westchester, and Broadview (Contract 11-187-3F) (“Project”). Ordinance R15-006 was subsequently amended by Ordinances R15-007, R18-003, R19-002, and R20-001 to include additional right-of-way needed for the Project. Said Ordinances authorized and directed the Executive Director to negotiate with the respective owners to acquire fee simple title or such lesser interests, as appropriate, in and to the real estate described in the Ordinances.
On September 6, 2018, the Board authorized the District to enter into intergovernmental agreements with the City of Northlake, Village of Stone Park, Village of Melrose Park, Village of Bellwood, Village of Westchester, and Village of Broadview for the Project. The proposed channel improvements are broken down into nine reaches along approximately 15,300 linear feet of Addison Creek beginning at Hirsch Street in the City of Northlake and continuing to Cermak Road in the Village of Broadview. The Addison Creek channel improvements, along with the proposed Addison Creek Reservoir, will provide flood reduction benefits to approximately 2,200 properties.
The Project requires the acquisition of a partial fee interest, and permanent and temporary easements, on the property commonly known as 1521 North Mannheim Road and 1512 North 40th Avenue in Stone Park, Illinois. The property is improved with a commercial building and a parking lot separated by a public alley. The partial fee interest is approximately 9,592 square feet, about half of which is located in the Addison Creek and has steep topography. The permanent and temporary easements are located immediately adjacent to the partial fee interest and comprise approximately 3,213 square feet and 7,443 square feet, respectively. These property interests are necessary to construct the channel improvements and to provide access for construction and staging.
On October 27, 2020, after the record owner did not respond to the District’s offer, the District filed an eminent domain lawsuit entitled The Metropolitan Water Reclamation District of Greater Chicago v. Alfred Arman Sr., et al., Case No. 20L050494 in the Circuit Court of Cook County, Illinois. Since filing the lawsuit, the District and the property owner have reached a negotiated settlement to acquire the necessary property interests for total compensation of $267,000.00. It is the opinion of the General Counsel and Special Counsel, Neal & Leroy, LLC that this amount is within the range of value for the subject property interests based on the fair market value appraisals obtained by the District and the property owner. The District’s appraisal, prepared by Patricia McGarr, MAI, of CohnReznick Valuation Advisory Services, determined that the total compensation due for these property interests is $215,400.00. The owner’s appraisal, prepared by John Mundie, MAI, of Mundie & Company, Inc., determined that the total compensation due for these property interests is $338,000.00.
The agreed settlement amount of $267,000.00 is less than an even split between the two appraised values, which is favorable for the District and avoids the risk of the judge or jury setting a higher compensation amount. In addition, final settlement of this matter will save the District substantial fees and costs that would otherwise be required to proceed to a quick-take hearing and trial, including attorney’s fees and expert witness fees. In addition, through this negotiated settlement, the District’s engineers have been able to address the property owner’s concerns with the design plans, such as minimizing the impacts to parking and to the furniture business that operates out of the commercial building.
In addition to the just compensation amount described above, a billboard is situated on a portion of the property that must be relocated due to the project. Pursuant to the agreement between the property owner and the owner of the billboard, the Lamar Advertising Company (“Lamar”), the billboard will be moved to the part of the property remaining after the District’s partial fee acquisition. The District’s relocation consultant, Urban Relocation Services, Inc. (“URS”), met with Lamar and evaluated its eligibility for moving costs under the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act (“URA”) (49 C.F.R. §24.301) and the Illinois Eminent Domain Act (735 ILCS 30/10-5-5). URS determined that the billboard owner qualifies for the actual and reasonable costs of moving the billboard, which are estimated not to exceed $250,000.00. This total amount was verified by URS and includes the removal and replacement of the existing sign along with the associated electrical and survey work required.
In addition to the billboard, the building is leased to a furniture retail business called Furniture A Outlet (“Tenant”). Although the Tenant is not displaced due to the project, the Tenant has four storage trailers located on the property that must be relocated. URS met with the Tenant and determined that under the URA the tenant qualifies for the actual and reasonable costs to move the trailers, which are estimated not to exceed $20,000.00.
Accordingly, it is requested that the Executive Director recommend to the Board of Commissioners that it adopt the following orders:
1. That the Board authorize payment of final just compensation in the amount of $267,000.00 to acquire the partial fee interest, and permanent and temporary easements, on the real estate commonly known as 1521 North Mannheim Road and 1512 North 40th Avenue in Stone Park, Illinois, to settle the eminent domain lawsuit entitled The Metropolitan Water Reclamation District of Greater Chicago v. Alfred Arman Sr., et al., Case No. 20L050494 in the Circuit Court of Cook County, Illinois;
2. That the Executive Director be authorized to make intermittent payments to the billboard owner and Tenant in a total amount not to exceed $270,000.00, for eligible costs in connection with relocation and moving, as provided for in the Uniform Relocation Assistance and Real Property Acquisition Policies Act and the Illinois Eminent Domain Act, of which $250,000.00 is estimated for the billboard relocation and $20,000.00 is estimated for moving the Tenant’s storage trailers; and
3. That the General Counsel be authorized and directed to execute and deliver all other documents and take such other actions as may be necessary to effectuate said settlement and to attain possession of said property interests.
Requested, Susan T. Morakalis, General Counsel and Catherine A. O’Connor, Director of Engineering; STM:CAO:MTC:BJD:CN
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 June 17, 2021
Attachment