TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 4, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to advertise Contract 24-360-11 for public tender of bids a 5-year permit on 19.67± acres of District real estate located north of I-294 and south of LaGrange Road, between the Des Plaines River and the Chicago Sanitary & Ship Canal in Willow Springs, Illinois, known as Main Channel Parcel 31.01. The minimum initial annual rental bid shall be established at $493,000.00
Body
Dear Sir:
The Board of Commissioners authorized the commencement of statutory procedures to lease District real estate located north of I-294 and south of LaGrange Road, between the Des Plaines River and the Chicago Sanitary & Ship Canal in Willow Springs, Illinois, known as Main Channel (“MC”) Parcel 31.01, on October 19, 2017. The parcel has not yet been leased because the Illinois State Toll Highway Authority (“ISTHA”) has easements and permits on the site to construct the I-294 Mile Long Bridge Project.
ISTHA’s project is scheduled to be completed in April 2024, and several entities have expressed interest in using the site when it becomes available. MC Parcel 31.01 is no longer suitable for long-term lease because the Maintenance & Operations Department may need the parcel for future corporate use, including biosolids management and related activities. As a result, a 5-year permit is recommended. In addition, the permit will allow the District to terminate the agreement, if necessary, to accommodate the District’s use of the site.
The lead applicant, WS Truck Parking & Storage LLC, intends to use the site for truck parking and storage. The Village of Willow Springs supports this proposed use of the site. Pursuant to statute, the lead applicant submitted two appraisals and the Law Department obtained a third appraisal, as follows:
Appraiser Value
CohnReznick $4,930,000.00
Sonia Singh, MAI
(District’s Appraiser
Borysow Appraisal $4,115,000.00
Paul Borysow, MAI
Chicago Commercial Appraisal Group $2,090,000.00
Michael Hobbs, MAI
It is recommended that the subject real estate’s fair market value be based upon the highest of the three appraisals and established at $4,930,000.00, and that the minimum initial annual rental bid be established at 10% of the property’s fair market value, which is $493,000.00.
It is further requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the following orders:
1. The real estate, which comprises 19.67± acres located in Willow Springs, Illinois, known as Main Channel Parcel 31.01, is not immediately needed for corporate use and can be made available for a short-term permit.
2. The fair market value of the subject real estate is established at $4,930,000.00, and the minimum initial annual rent be established at 10% thereof, which is $493,000.00.
3. The Director of Procurement and Materials Management is authorized to advertise the subject real estate as available for a 5-year permit at the minimum initial annual rental bid of $493,000.00, and to 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 24-360-11 for public tender of bids a 5-year permit on 19.67± acres of District real estate located north of I-294 and south of LaGrange Road, between the Des Plaines River and the Chicago Sanitary & Ship Canal in Willow Springs, Illinois, known as Main Channel Parcel 31.01. The minimum initial annual rental bid shall be established at $493,000.00.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:KHY:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Marcelino Garcia, Chairman, Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for April 4, 2024
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