TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 16, 2016
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to advertise Contract 16-363-11 for public tender of bids a 35-year lease on 1.18 acres of District real estate located at 12900 South Throop Street in Calumet Park, Illinois; Cal-Sag Channel Parcel 16.04. The minimum initial annual rental bid shall be established at $10,000.00
Body
Dear Sir:
On May 19, 2016, the Board of Commissioners authorized the commencement of statutory procedures to lease the subject property located at 12900 South Throop Street in Calumet Park, Illinois and known as Cal-Sag Channel Parcel 16.04. The site is currently occupied by Ozinga Ready Mix Concrete, Inc. (“Ozinga”) under a lease that expires August 31, 2016. Ozinga has requested a new lease to continue its current operations. Ozinga uses the site in conjunction with its adjacent ready mix plant operations on Cal-Sag Channel Parcel 16.01. A 35-year lease is being recommended so that this lease can terminate contemporaneously with Ozinga’s lease on Parcel 16.01.
Pursuant to statute, the lead applicant, Ozinga, submitted two appraisals and the Law Department obtained a third appraisal as follows:
Appraiser Value
Appraisal Associates
William J. Enright, MAI $100,000.00
(District’s appraiser)
Renzi & Associates
Neal Renzi, MAI $ 77,000.00
C.A.S.E. Chicagoland, Inc.
Toby J. Sorensen, MAI $ 40,000.00
It is recommended that the subject real estate’s fair market value be based upon the highest of the three appraisals and established at $100,000.00, and that the minimum initial annual rental bid be established at 10% of the property’s fair market value or $10,000.00.
It is further recommended that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of the following orders:
1. The real estate consisting of 1.18 acres located at 12900 South Throop Street in Calumet Park, Illinois, and known as Cal-Sag Channel Parcel 16.04 depicted in the exhibit attached hereto be declared surplus and not needed for the District’s corporate purposes and available for lease as set forth herein.
2. The fair market value of the 1.18 acres of real estate be established at $100,000.00 and that the minimum initial annual rental be established at 10% thereof or $10,000.00.
3. The Director of Procurement and Materials Management be authorized to advertise said 1.18 acres of real estate as available for lease for a term of thirty-five (35) years at the minimum initial annual rental bid of $10,000.00 and report the results of the bidding to the Board of Commissioners for further action.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the Director of Procurement and Materials Management to advertise Contract 16-363-11 for public tender of bids a 35-year lease of 1.18 acres of District real estate located at 12900 South Throop Street in Calumet Park, Illinois and known as Cal-Sag Channel Parcel 16.04. The minimum initial annual rental bid shall be established at $10,000.00.
Requested, Ronald M. Hill, General Counsel, RMH:SM:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement and Materials Management
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for June 16, 2016
Attachment