TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 5, 2026
COMMITTEE ON REAL ESTATE
Mr. John P. Murray, Executive Director
Title
Authority to issue a 4-year permit to Michels Constuction, Inc. to use approximately 4.5 acres of District real estate located at 3615 Oakton Street in Skokie, Illinois, known as North Shore Channel Parcels 5.02 and 5.03, for staging, equipment storage and other purposes related to District Contract 21-092-3P, Battery E Activated Sludge Facility, O’Brien Water Reclamation Plant. Consideration shall be an annual permit fee of $72,862.00.
Body
Dear Sir:
On June 18, 2026, the Board of Commissioners awarded Contract 21-092-3P, Battery E Activated Sludge Facility, O’Brien Water Reclamation Plant (“O’Brien Plant”), to Michels Construction, Inc. (“Michels”). The contract consists of constructing a new activated sludge facility, Battery E, capable of handling a peak flow of 125 MGD at the O’Brien Plant and is expected to take approximately four years to complete. Michels has requested to use North Shore Channel (“NSC”) Parcels 5.02 and 5.03 for staging due to its proximity to the project area.
NSC Parcels 5.02 and 5.03 comprise approximately 4.5 acres of District real estate located at 3615 Oakton Street, between Oakton Street and the CTA Yellow Line tracks, directly north of the O’Brien Plant in Skokie, Illinois. The parcels are currently vacant and were previously leased to Skokie Motor Sales, Inc., who used the site to park vehicles.
The District’s technical departments have reviewed Michels’ permit request and have no objections thereto. The recommended annual permit fee is $72,862.00. This amount is based on the fair market value of a similar staging area that was identified in the contract documents.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of a 4-year permit to Michels Constuction, Inc. to use approximately 4.5 acres of District real estate located at 3615 Oakton Street in Skokie, Illinois, known as North Shore Channel Parcels 5.02 and 5.03, for staging, equipment storage and other purposes related to District Contract 21-092-3P, Battery E Activated Sludge Facility, O’Brien Water Reclamation Plant. Consideration shall be an annual permit fee of $72,862.00.
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 Permit 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 November 5, 2026
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