TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 6, 2020
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to advertise Contract 20-360-11 for public tender of bids a 39-year lease on 13.53+ acres of District real estate located south of the Main Channel between I-355 and Lemont Road/State Street in unincorporated Lemont, Illinois; Main Channel Parcels 22.04 and 22.05. The minimum initial annual rental bid shall be established at $308,000.00
Body
Dear Sir:
On May 7, 2020, the Board of Commissioners (“Board”) authorized the commencement of statutory procedures to lease the subject District real estate located south of the Main Channel between I-355 and Lemont Road/State Street in unincorporated Lemont, Illinois; Main Channel Parcels 22.04 and 22.05 for a 39-year term. The lead applicant, ACBL Transportation Services LLC (“ACBL”), has requested to lease the site for fleeting and mooring barges.
ACBL currently leases Main Channel Parcel 22.04 comprising 9.49+ acres for these same purposes under a lease that commenced January 1, 1976, and expires December 31, 2020. The lease includes a 20’ wide seawall located along the Main Channel adjacent to Main Channel Parcel 22.05. Parcel 22.05 comprises 4.04+ acres and is currently vacant. ACBL’s current annual rent is $48,000.00.
Pursuant to statute, the lead applicant, ACBL, submitted two appraisals and the Law Department obtained a third appraisal as follows:
Appraiser Value
CohnReznick L.L.P.
Patricia L. McGarr, MAI $3,080,000.00
(District’s Appraiser)
Allied Appraisal Company $1,700.000.00
Robert A. Napoli, MAI
Appraisal Associates $1,500,000.00
William J. Enright, 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 $3,080,000.00, and that the minimum initial annual rental bid be established at 10% of the property’s fair market value or $308,000.00.
It is further recommended that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of the following orders:
1. The real estate comprising 13.53+ acres of District real estate located south of the Main Channel between I-355 and Lemont Road/State Street in unincorporated Lemont, Illinois; Main Channel Parcels 22.04 and 22.05, as depicted in the exhibit attached hereto, be declared surplus and not needed for the District’s corporate purposes and available for lease as set forth herein.
2. The fair market value of the 13.53+ acres of real estate be established at $3,080,000.00, and that the minimum initial annual rental be established at 10% thereof or $308,000.00.
3. The Director of Procurement and Materials Management be authorized to advertise said 13.53+ acres of real estate as available for lease for a term of 39 years at the minimum initial annual rental bid of $308,000.00, 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 Contract 20-360-11 for public tender of bids a 39-year lease on 13.53+ acres of District real estate located south of the Main Channel between I-355 and Lemont Road/State Street in unincorporated Lemont, Illinois; Main Channel Parcels 22.04 and 22.05. The minimum initial annual rental bid shall be established at $308,000.00.
Requested, Susan T. Morakalis, General Counsel, STM:EMA:CMM
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 August 6, 2020
Attachment