TRANSMITTAL LETTER FOR THE BOARD MEETING OF APRIL 16, 2020
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to enter into a 25-year lease with the City of Evanston on 16.4± acres of District real estate located east of the North Shore Channel between Dempster Street and Main Street in Evanston, Illinois, known as North Shore Channel Parcel 4.01. Consideration shall be a nominal fee of $10.00
Body
Dear Sir:
The City of Evanston (“Evanston”) leases approximately 16.4 acres of District real estate located east of the North Shore Channel between Dempster Street and Main Street in Evanston, Illinois, known as North Shore Channel Parcel 4.01. The leased premises is used by Evanston for public recreational purposes, including park and playground facilities commonly known as Harbert Park. The lease commenced September 1, 1965 and expires May 31, 2032. The rent is $1,500.00 per year.
Evanston has requested to terminate its existing lease and instead enter into a new lease agreement for 25 years (from 2020 until 2045) to continue using the subject parcel for public recreational purposes. Evanston is requesting a new lease at this time because it was awarded a grant from the Illinois Department of Natural Resources (“IDNR”) to help fund park renovations; however, the IDNR grant requires Evanston to have a long-term lease for at least 25 years.
The planned improvements at Harbert Park include playground renovations, security lighting upgrades, basketball court reconstruction, a new picnic shelter, pathway improvements, and drainage improvements. Evanston has applied for and received a Watershed Management Ordinance (“WMO”) permit from the District for this development. In addition, Evanston has submitted the necessary documentation to show compliance with the District’s green infrastructure requirements by preserving existing open space and naturalized preserve areas, and also providing off site green infrastructure by installing new permeable pavers in a portion of an existing public parking lot near the Davis Street Metra Station.
The District’s technical departments have reviewed this lease request and have no objections thereto. Under 70 ILCS 2605/8c(11), the lease would be terminable upon service of a one-year notice if the property becomes essential to the District’s corporate needs. In addition, the lease will require Evanston to keep making its annual rental payments of $1,500.00 until the original lease term ends in 2032; thereafter, a nominal fee of $10.00 is recommended, as is customary for a governmental entity using District land for a public purpose. In the event revenues or profits are ever derived from the leasehold, the lease will contain a provision requiring rent to be an additional annual fee of 25% of the net profits derived from the site.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the District to enter into a 25-year lease with the City of Evanston on 16.4± acres of District real estate located east of the North Shore Channel between Dempster Street and Main Street in Evanston, Illinois, known as North Shore Channel Parcel 4.01. Consideration shall be a nominal fee of $10.00
It is also 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:EMA:BJD:vp
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 April 16, 2020
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