TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 12, 2018
COMMITTEE ON REAL ESTATE
Mr. John P. Murray, Acting Executive Director
Title
Authority to issue a 90-day permit to Peoples Gas Light & Coke Company to use an approximate 5,000 sq. ft. portion of North Shore Channel Parcel 8.01 located between Lincoln and Peterson Avenues in Chicago, Illinois as a construction staging area and for dewatering a Peoples Gas utility tunnel. Consideration shall be $5,000.00
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Dear Sir:
On June 20, 1946, the District granted a perpetual easement to Peoples Gas Light & Coke Company (“PGL”) to install, construct, operate, maintain, repair and replace a 48” natural gas pipeline on a 25’ x 258’ portion of North Shore Channel Parcel 8.01 (“Parcel 8.01”) located along the eastern bank of the North Shore Channel between Lincoln and Peterson Avenues in Chicago Illinois, and a utility tunnel located beneath the North Shore Channel north of Peterson Avenue. Subsequently, in 1971, PGL replaced the 48” gas pipeline with a 42” pipeline.
PGL will be inspecting and performing repairs to the portion of its 42” pipeline located within the utility tunnel. The tunnel is filled with water per PGL’s standard protocol and needs to be dewatered to allow for the inspection and repairs. Accordingly, PGL has requested a 90-day permit to use an approximate 5,000 sq. ft. portion of Parcel 8.01 as a construction staging area to store vehicles and equipment such as hoists, ventilation equipment, generator pumps and other miscellaneous equipment during the repair project, and for dewatering its tunnel by connecting a hose from the tunnel to a District manhole located within the requested permit area. In conjunction with this permit request, PGL has submitted its One-Time Discharge Permit Request to the District’s Monitoring and Research Department Industrial Waste Division’s Enforcement Section.
Parcel 8.01 is leased to the Chicago Park District (“Park District”) under a public recreational lease that commenced April 12, 1961, and expires April 11, 2061. As part of this permit request, PGL will have to obtain the written consent of the Park District.
The District’s technical departments have reviewed this request and have no objections thereto. A permit fee in the amount of $5,000.00 is recommended, as the pro-rata share of 10% of the fair market value of the land would yield a fee less than the District's minimum permit fee of $5,000.00.
It is requested that the Acting Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of a 90-day permit to Peoples Gas Light & Coke Company to use an approximate 5,000 sq. ft. portion of North Shore Channel Parcel 8.01 located between Lincoln and Peterson Avenues in Chicago, Illinois as a construction staging area and for dewatering a Peoples Gas utility tunnel.
It is also requested that the Acting Executive Director recommend to the Board of Commissioners that the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute said permit agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:CMM:npe
Recommended, John P. Murray, Acting Executive Director
Respectfully Submitted, David J. Walsh, 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 12, 2018
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