TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 21, 2017
COMMITTEE ON PROCUREMENT
David St. Pierre, Executive Director
Title
Authorization to accept initial annual rental bid for Contract 17-365-11 Proposal to Lease for 20-years, 23.95 acres of District real estate located at 4801 South Harlem Avenue in Forest View, Illinois; Main Channel Parcel 37.04 from Petroleum Fuel & Terminal Company in the amount of $590,000.00
Body
Dear Sir:
At its meeting of September 14, 2017, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise Contract 17-365-11 Proposal to Lease for 20-years, 23.95 acres of District real estate located at 4801 South Harlem Avenue in Forest View, Illinois and known as Main Channel Parcel 37.04. The minimum acceptable annual rental bid was established at $590,000.00.
One bid was received for the subject proposal and was opened on October 24, 2017. The bid was received from Petroleum Fuel & Terminal Company (“PF&T”) for a minimum initial annual rental bid of $590,000.00 (10% of the appraised fair market value). PF&T currently occupies this site under a 25-year lease that commenced January 1, 1993 and expires December 31, 2017. PF&T’s current rent is $299,619.00. PF&T proposes to use the site under the new lease for the purpose of continuing to operate and maintain an oil terminal and storage facility.
The Finance Department has reviewed PF&T’s financial and company background information and has reported that it demonstrates the ability to meet its financial obligations under the new proposed lease.
It is requested that the Executive Director recommend to the Board of Commissioners that it accept the initial annual rental bid for Contract 17-365-11 Proposal to Lease for 20-years, 23.95 acres of District real estate located at 4801 South Harlem Avenue in Forest View, Illinois; Main Channel Parcel 37.04 from Petroleum Fuel & Terminal Company in the amount of $590,000.00.
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 the lease agreement after it has been approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:CMM:vp
Recommended, Darlene LoCascio, Director of Procurement and Materials Management
Recommended, David St. Pierre, Executive Director
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 December 21, 2017
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