TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 9, 2009
COMMITTEE ON REAL ESTATE
Mr. Richard Lanyon, Executive Director
Title
Authority to enter into a simultaneous early surrender and termination of current lease and issuance of a new 39-year lease with the Village of Lincolnwood for the continued use of approximately 17.30 acres of District real estate commonly known as Channel Runne Park, located along the west side of the North Shore Channel between Devon and Touhy Avenues in Lincolnwood, Cook County, Illinois, North Shore Channel Parcel 7.06, consideration shall be a nominal fee of $10.00
Body
Dear Sir:
On July 6, 1989, the Board of Commissioners authorized the District to enter into a 25-year lease with the Village of Lincolnwood on 17.30 acres of District real estate commonly known as Channel Runne Park, located along the west side of the North Shore Channel between Devon and Touhy Avenues in Lincolnwood, Cook County, Illinois, North Shore Channel Parcel No. 7.06. The lease commenced on September 1, 1989 and is set to expire on August 31, 2014. The rental is a nominal fee of $1.00.
The Village of Lincolnwood has requested a simultaneous early surrender and termination of its current lease and issuance of a new long-term lease. The Village of Lincolnwood applied for and was recently awarded a state grant to make certain leasehold improvements such as building a frisbee golf course, small concert area and a parking lot for up to 40 cars. Lincolnwood has indicated that the parking lot would be built with permeable pavers and rain gardens. Any such improvements would require the prior written consent of the technical departments once the plans therefore are submitted. The amount of the grant was $363,300.00. The Village of Lincolnwood has advised that the grant will only be available if its current lease is extended or renewed for a minimum of an additional 31 years. Accordingly, it is proposed that the term of new lease be for 39 years, which is the customary term for District leases for public recreational purposes.
The technical departments have reviewed the new lease request and have reported that there is no foreseeable corporate use for this site, nor were there any technical objections concerning use of the site.
The adjacent property located at 3266 West Devon Avenue in Chicago, Illinois, comprising 1.20 acres of land, formerly had a gasoline service station. Current data indicates that said adjacent site contains underground storage tanks and certain environmental contamination resulting from the prior service station operations that occurred between 1954 and 1979. While the technical review of this site and potential contamination issues are still being reviewed, the new lease for the Village of Lincolnwood will be drafted so as to exempt the Village of Lincolnwood from any current or future environmental contamination on its leasehold that resulted from the gasoline station operations.
While the Village of Lincolnwood will be required to obtain the standard environmental insurance for non-revenue generating leases issued to governmental entities for parks and recreational purposes, the Village of Lincolnwood’s insurance coverage will not be required to cover contamination, if any, migrating from the former site of the gasoline service station.
A $10.00 nominal fee rent is recommended in accordance with the District’s practice for non-revenue generating leases issued to governmental entities for parks and recreational purposes.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the simultaneous early surrender and termination of the Village of Lincolnwood’s current lease and issuance of a new 39-year lease for the continued use of approximately 17.30 acres of District real estate commonly known as Channel Runne Park, located along the west side of the North Shore Channel between Devon and Touhy Avenues in Lincolnwood, Cook County, Illinois, North Shore Channel Parcel 7.06. Consideration shall be a nominal fee of $10.00.
It is also respectfully 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 said new lease on behalf of the District after it is approved by the General Counsel as to form and legality.
Requested, Frederick M. Feldman, General Counsel, FMF:CL:STM:BOC:rg
Recommended, Richard Lanyon, Executive Director
Respectfully Submitted, Terrence J. O’Brien, Chairman Committee on Real Estate Development
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for July 9, 2009