TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 16, 2024
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to: (1) amend Lease Agreement dated June 1, 1996, with the Village of Worth for public recreational use of approximately 214.1± acres of District real estate located north of the Cal-Sag Channel, east and west of Harlem Avenue in Worth, Illinois, known as Cal-Sag Channel Parcels 8.06 and 9.03, to surrender an approximately 20.3±-acre portion commonly known as Altman Park; and (2) enter into a 50-year lease with the Worth Park District for the continued use of Altman Park for public recreational purposes. Consideration for the Village of Worth’s lease amendment shall be a one-time fee of $10.00. Consideration for the Worth Park District’s lease shall be a one-time fee of $10.00
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Dear Sir:
The Village of Worth (“Village”) leases approximately 214.1± acres of District real estate located north of the Cal-Sag Channel (“CSC”), east and west of Harlem Avenue in Worth, Illinois, known as CSC Parcels 8.06 and 9.03. The Village’s leasehold is divided into two distinct public recreation areas: the west contains a 20.3±-acre public park known as Altman Park, and the east contains the Water’s Edge Golf Course, including a clubhouse, driving range, parking lot, boat launch, and other public recreational facilities. The lease commenced June 1, 1996, and, as extended, expires May 31, 2058. The Village pays an annual rent of $5,000.00, plus 25% of net profits. In 2023, the Village paid the District $7,010.61 under the profit-sharing arrangement.
The Village has requested to surrender the 20.3±-acre Altman Park portion of its leasehold so that the Worth Park District (“Park District”) may enter into a new 50-year lease for the park. After the Village surrenders Altman Park, it would continue to lease the remaining 193.8± acres for public recreational purposes under the existing lease terms.
Altman Park is a general-purpose public park with picnic areas and space for outdoor activities. The Park District would continue to use the park for these same public recreational purposes. Taking Altman Park out of the Village’s leasehold and leasing it to the Park District would allow the Village to focus on managing the golf course while the Park District would apply its expertise to manage the park and improve its public recreation facilities. A longer lease term will enable the Park District to qualify for grant funds to help pay for any improvements, as such grants typically require leases longer than 25 years. Under 70 ILCS 2605/8c(11), the requested new lease is terminable upon service of a one-year notice if the property becomes essential to the District’s corporate needs.
The District’s technical departments have reviewed the subject request and have no objections thereto.
A one-time nominal fee of $10.00 is recommended for the lease amendment and for the new lease. Such fees are customary for governmental entities using District real estate for public recreational purposes. The rent and profit-sharing terms provided in the Village’s current lease shall not change under the amendment. Also, the new Altman Park lease will contain a provision that if the Park District ever generates revenues or profits from the leasehold, rent will include an additional annual fee of 25% of the net profits derived from the site.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the District to: (1) amend Lease Agreement dated June 1, 1996, with the Village of Worth for public recreational use of approximately 214.1± acres of District real estate located north of the Cal-Sag Channel, east and west of Harlem Avenue in Worth, Illinois, known as Cal-Sag Channel Parcels 8.06 and 9.03, to surrender an approximately 20.3±-acre portion commonly known as Altman Park; and (2) enter into a 50-year lease with the Worth Park District for the continued use of Altman Park for public recreational purposes. Consideration for the Village of Worth’s lease amendment shall be a one-time fee of $10.00. Consideration for the Worth Park District’s lease shall be a one-time fee of $10.00.
It is further 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 lease amendment and said new lease agreement after they are approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:JAW:vp
Recommended, Brian A. Perkovich, Executive Director
Disposition of this agenda item will be documented in the official Regular board Meeting Minutes of the Board of Commissioners for May 16, 2024
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