TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 2, 2013
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to advertise Contract 13-360-11 for public tender of bids a 39-year lease on approximately 2.66 acres of District real estate located at 12483 South Michigan Avenue in Chicago, Illinois. The minimum initial rental bid shall be established at $2,500.00.
Body
Dear Sir:
On April 4, 2013, the District's Board of Commissioners authorized the commencement of statutory procedures for a 39-year lease on 2.66 acres of District real estate located at 12483 South Michigan Avenue in Chicago.
The Roseland Little League Baseball Organization ("Roseland") has occupied the subject property to maintain and operate little league baseball fields under a series of permits from 1999 through September 18, 2012. Roseland is currently under 5-month permit to allow continued maintenance and operation of the little league baseball fields during the Spring 2013 baseball season.
In accordance with the leasing statute, two appraisals were obtained by Roseland and the District obtained a third appraisal as follows:
Appraiser Appraised Fair Market Value
Gorman Group Ltd. $ 16,800.00
Robert C. Gorman, MAI
D. L. DuBois & Associates $ 17,000.00
David L. DuBois, MAI
Appraisal Associates $ 17,000.00
William J. Enright, MAI
(District's Appraiser)
It is recommended that the subject real estate's fair market value be based upon the highest two appraisals and established at $17,000.00. It is also recommended that the minimum annual rental bid be established at 14.7% of the property's fair market value, or $2,500.00, rather than the customary 10% of the property's fair market value which would yield $1,700.00 annually and is less than the District's minimum annual fee of $2,500.00.
It is further recommended that the Executive Director recommend to the Board of Commissioners that it authorize the following orders:
1. The real estate consisting of approximately 2.66 acres located at 12483 South Michigan Avenue in Chicago, Illinois, depicted in the exhibit attached hereto be declared surplus and not currently needed for the District's corporate purposes and available for lease as set forth herein.
2. The fair market value of the 2.66 acres of real estate be established at $17,000.00 and that the minimum initial annual rental be established at 14.7% thereof or $2,500.00.
3. The Director of Procurement and Materials Management be authorized to advertise the said approximately 2.66 acres of real estate as available for lease for a term of thirty- nine (39) years at the minimum initial annual rental bid of $2,500.00 and 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 for public tender of bids a 39-year lease on approximately 2.66 acres of District real estate located at 12483 South Michigan Avenue in Chicago, Illinois. The minimum initial rental bid shall be established at $2,500.00.
Requested, Ronald M. Hill, General Counsel RMH:STM:BEB
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, 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 May 2, 2013
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