TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 5, 2012
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to grant a 25-year easement to Commonwealth Edison Company to operate, maintain, service, repair, and remove an electrical substation and overhead electrical transmission lines on approximately 20.50 acres of District land located south of 135th Street in Romeoville, Will County, Illinois; Main Channel Parcel 18.03. Consideration shall be an initial annual fee of $67,000.00.
Body
Dear Sir:
In July 2010, the Board of Commissioners (“Board”) granted a permit to the U. S. Army Corps of Engineers for the sole purpose of constructing an electrical substation on the northern portion of Main Channel Parcel 18.03 to provide additional electrical power to the Aquatic Species Nuisance Barriers lying north of the 135th Street Bridge. At the time the permit was issued to the Corps, it was contemplated that upon completion of the construction of the substation, Commonwealth Edison Company (“ComEd”) would thereafter be granted long-term occupancy rights for its operation and maintenance. Subsequently, the Board also granted ComEd a one-year easement on a 35 foot by 1,800 foot portion of Parcel 18.03 to construct overhead electrical transmission lines to provide power to the substation. A 25-year easement to ComEd is now being recommended for the maintenance and operation of the substation and the electrical lines.
Parcel 18.03 is a long, narrow area of land. Because ComEd’s proposed use is to operate electrical transmission lines and an ancillary substation, an easement grant is a more appropriate mechanism than a lease, as has been the practice in all recent ComEd transactions.
The District’s technical departments have reviewed this request and have no objections thereto. The fee of $67,000.00 represents 10% of the fair market value of the easement area.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of a 25-year easement to Commonwealth Edison Company to operate, maintain, service, repair, and remove an electrical substation and overhead electrical transmission lines on approximately 20.50 acres of District land located south of 135th Street in Romeoville, Will County, Illinois; Main Channel Parcel 18.03. Consideration shall be an initial annual fee of $67,000.00.
It is further requested that the Executive Director recommend to the Board of Commissioners that it authorize the Chairman of the Committee on Finance and the Clerk to execute said easement agreement after it is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM:JCC:rg
Recommended, David St. Pierre, 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 January 5, 2012
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