TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 2, 2012
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to commence statutory procedures for a 39-year lease of approximately 4.6 acres of improved District real estate known as a portion of Main Channel 34.02 in Summit, Illinois.
Body
Dear Sir:
Owens Corning Roofing and Asphalt, LLC (“Owens Corning”) currently occupies Parcel 34.02 under an interim permit issued upon expiration of its lease on Main Channel Parcel 34.02 ("Parcel 34.02") located in Summit, Illinois. The prior lease commenced on November 15, 1991 and expired November 14, 2011. An interim permit was issued to allow it to continue to operate a barge dock and asphalt transfer facility in conjunction with operations of the nearby Owens Corning Asphalt Plant. The annual permit fee is $53,290.00.
The permit was issued to allow Owens Corning to continue to occupy the site for the same permitted use as was allowed under its lease, to allow time to complete the competitive bidding procedures for the sale of the 0.70 acre isolated portion of Parcel 34.02, to complete the statutory leasing process on the remaining 4.6 acre portion of Parcel 34.02 and to allow time to vacate if it is not the high bidder and awarded a lease.
Parcel 34.02 is divided into two parcels; a 4.6 acre section located along the Main Channel and an approximately 0.70 acre isolated parcel located east of and across the Illinois & Michigan Canal right-of-way and the Illinois Central railroad tracks. The 4.6 acre parcel contains a barge dock, a pipeline to transfer tar and asphalt, a 300 square foot building and an empty 80,000 gallon above ground storage tank that previously stored mineral spirits.
Owens Corning has requested to purchase the 0.70 acre isolated portion of Parcel 34.02. On May 5, 2011, the Board of Commissioners granted authority to commence procedures to sell this 0.70 acre isolated parcel.
Owens Corning has also requested a new 39-year lease on the remaining 4.6 acre portion of Parcel 34.02 to continue to operate and maintain the barge dock in conjunction with its nearby asphalt transfer facility. The District's technical departments have reviewed the request and have reported that the subject land is not currently required for the District's corporate purposes and can be made available for leasing.
A Phase II environmental site investigation was performed on the 4.6 acre portion of the premises, but not on the 0.70 acre portion because it will be sold "as is." A review of the Phase II results, and of the premises, by the Site Remediation Section did not identify any environmental impairments on the 4.6 acre portion of the premises attributable to Owens Corning's operations at the site.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the General Counsel to commence statutory procedures to lease approximately 4.6 acres of improved District real estate known as a portion of Main Channel 34.02 in Summit, Illinois, upon the terms and conditions set forth herein.
Requested, Ronald M. Hill, General Counsel, RMH:STM:NPE:rg
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Terrence J. O’Brien, Chairman Committee on Real Estate Development
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for February 2, 2012
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