TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 19, 2008
COMMITTEE ON JUDICIARY
Mr. Richard Lanyon, General Superintendent
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Authority to Settle the lawsuit entitled of Metropolitan Water Reclamation District of Greater Chicago v. Trinity Christian College, Case No. 05 CH 10406, in the Circuit Court of Cook County, by acceptance of the payment of $223,344.05 and Issuance of a 50-Year Lease to Trinity Christian College. Consideration shall be an initial annual rental of $68,000.00.
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Dear Sir:
The District and Trinity Christian College are currently involved in a lawsuit seeking to recover $300,000.00 in tipping fees collected by the College. The District has alleged that Trinity violated the terms of its prior lease which allowed use of District land for development of athletic fields with the District by allowing fill to be brought to the site without permission and without benefit of analysis. The parties are currently attempting to resolve this lawsuit after several pretrial conferences with Judge William O. Maki to whom this matter is assigned. In its negotiations, Trinity seeks the issuance of a 50 year lease for the site for the purpose of building and utilizing athletic fields. The site contains approximately 78.33 acres located south of the Cal Sag Channel between Ridgeland Avenue and 127th Street partially in unincorporated Cook County and partially in Alsip, Illinois and known Cal Sag Channel Atlas Index Parcels 10.03 and 11.03.
On October 4, 2007, the Board authorized the Law Department to negotiate terms for a settlement of this matter. As part of the settlement, the District had suggested that the granular residue from the Crestwood spoil bank processing program could be used as fill for the Trinity site. However, analysis of the material by both parties concludes that the Crestwood material is not suitable for such use.
During the course of the initial lease, Trinity collected $308,000.00 in tipping fees. The college has agreed to tender the amount of $223,344.05 to the District to facilitate the settlement. This amount represents the total tipping fees collected minus costs incurred by Trinity in resolving an IEPA Notice of Violation at the site attributable to the fill that was imported to the site.
The District’s Site Remediation Section is currently developing a protocol for fill that could be brought to the site. The importation, spreading and compaction of acceptable fill will operate to level the site thereby increasing the value of the land. Trinity has proposed a revenue sharing formula in which the District would receive 10% of the handling fees received from those bringing acceptable fill to the site.
The previous lease to Trinity dated November 1, 2003, called for annual rent in the amount of $68,000.00 based upon appraisals conducted at that time. That amount was fixed for the first ten years of the lease.
Inasmuch as the site has remained undeveloped during this time, the Law Department believes the previous lease rental amount is appropriate for the initial ten year period from July 1, 2008 through June 30, 2018.
There is no foreseeable corporate need for the property in the next 50 years.
Accordingly, it is requested that the General Superintendent recommend to the Board of Commissioners that it authorize settlement of the subject litigation on the following terms:
1. That Trinity pay to MWRDGC the sum of $223,344.05.
2. That the District issue a 50-year lease to Trinity Christian College pursuant to the provisions of 70 ILCS 2605/8c(11), upon the foregoing terms as well as usual and customary terms and conditions for leases of this type.
It is further requested that the General Superintendent recommend to the Board of Commissioners that it authorize and direct the Attorney to execute all documents necessary to effectuate the settlement of the litigation on the foregoing terms and that the Chairman of the Committee on Finance and Clerk be authorized and directed to execute said lease after same is approved by the Attorney as to form and legality.
Requested, Frederick M. Feldman, Attorney, FMF:LJH:crb
Recommended, Richard Lanyon, General Superintendent
Respectfully Submitted, Terrence J. O’Brien, Chairman Committee on Judiciary
ORDERED passed by affirmative roll call vote of a majority of the Commissioners present this June 19, 2008. Approved, President Terrence J. O’Brien