TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 5, 2026
COMMITTEE ON REAL ESTATE
Mr. John P. Murray, Executive Director
Title
Authority to 1) consolidate three existing public recreational leases with the Skokie Park District on approximately 58.4 acres located near the Terrence J. O’Brien Water Reclamation Plant in Skokie, Illinois, into one 50-year lease and 2) add to the consolidated lease approximately 9 acres of District real estate located along the east bank of the North Shore Channel between Howard Street and Oakton Street in Skokie, Illinois, commonly known as NSC Parcels 6.01, 6.06, 6.11, 6.14, and 6.20. Consideration shall be a one-time fee of $10.00 (As Revised)
Body
Dear Sir:
The Skokie Park District (“Skokie PD”) leases approximately 58.4 acres of District real estate located near the Terrence J. O’Brien Water Reclamation Plant in Skokie, Illinois, commonly known as North Shore Channel (“NSC”) Parcels 4.02, 4.05, 4.06, 6.12, 6.15 and 6.19. The six parcels are leased under three separate lease agreements that all commenced April 22, 1994, and expire April 20, 2032.
Skokie uses these parcels for public recreational purposes, including public parks, boating and rowing facilities, a golf driving range, batting cages, cricket fields, soccer fields, and walking paths. The lease on NSC Parcels 6.12 and 6.19 also authorizes the sale and consumption of alcohol, restricted to the clubhouse, patio, and adjacent tented area, and during private rental events. The annual rent under the leases is a nominal fee of $1.00, plus 25% of the annual net revenues derived from the leasehold. These revenue sharing provisions shall be continued in the new consolidated lease.
Skokie PD has requested to consolidate these three leases into one lease agreement for a new 50-year term. The consolidation will enable Skokie PD to more efficiently manage the premises under one agreement, and the extension will allow for planning and financing of long-term park facility improvements. The consolidation is also beneficial for the District because it will be more effective to manage the multiple public parks leased to Skokie PD under one lease agreement that contains the District’s modern lease provisions.
Skokie PD will use these parcels for the same purposes authorized under the existing lease agreements, including the continued sale and consumption of alcohol on NSC Parcels 6.12 and 6.19. The sale of alcohol is authorized by Illinois law (235 ILCS 5/6-15), which permits the sale and consumption of alcohol on District-owned real estate that is leased for a term of at least 20 years and approved by the Board of Commissioners.
Skokie PD also requests to add approximately 9 acres to the new consolidated lease. The new parcels are located along the east bank of the North Shore Channel between Howard Street and Oakton Street in Skokie, Illinois, commonly known as NSC Parcels 6.01, 6.06, 6.11, 6.14, and 6.20. Portions of these parcels are currently being used as staging areas for various District construction projects; however, Skokie PD is aware of the ongoing projects, and the lease will be subject to these District uses until the work is completed.
The District’s technical departments have reviewed these lease requests and have no objections thereto.
It is requested that the Executive Director recommend to the Board of Commissioners that it grant authority to: 1) consolidate three existing public recreational leases with the Skokie Park District on approximately 58.4 acres located near the Terrence J. O’Brien Water Reclamation Plant in Skokie, Illinois, into one 50-year lease and 2) add to the consolidated lease approximately 9 acres of District real estate located along the east bank of the North Shore Channel between Howard Street and Oakton Street in Skokie, Illinois, commonly known as NSC Parcels 6.01, 6.06, 6.11, 6.14, and 6.20.
It is further requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the Chairman of the Committee on Finance and the Clerk to execute said Lease Agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:NOC
Recommended, John P. Murray, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for February 5, 2026
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