TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 6, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authorization to accept initial annual rental bid of $46,500.00 and enter into a 20-year lease with Owens Corning Roofing & Asphalt, LLC on approximately 4.6 acres of District real estate located near 7800 West 59th Street in Summit, Illinois; western part of Main Channel Parcel 34.02, Contract 12-371-11
Body
Dear Sir:
At its meeting of September 6, 2012, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for the public tenders of bids a 20-year lease on approximately 4.6 acres of District real estate located near 7800 West 59th Street in Summit, Illinois; western part of Main Channel Parcel 34.02. The minimum acceptable annual rental bid was established at $42,000.00.
One bid was received for the subject proposal and was opened on October 23, 2012. The sole bid was received from Owens Corning Roofing & Asphalt, LLC ("Owens Corning") for a minimum initial annual rental bid of $46,500.00 (11.07% of the appraised fair market value).
The subject property has been occupied by Owens Corning and its predecessors under leases and permits since 1946. The subject property is currently used for operating a barge dock in conjunction with the existing operations of the nearby Owens Corning Plant.
The Finance Department has reviewed Owens Corning's corporate and company background information and has reported that it has demonstrated the ability to meet its financial obligations under the proposed lease.
It is requested that the Executive Director recommend to the Board of Commissioners that it accept the initial annual rental bid of $46,500.00 submitted by Owens Corning Roofing & Asphalt, LLC, and award it a 20-year lease on 4.6 acres of District real estate located near 7800 West 59th Street in Summit, Illinois; western part of Main Channel Parcel 34.02, Contract 12-371-11.
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, Ronald M. Hill, General Counsel, RMH:STM:npe
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 December 6, 2012
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