TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 18, 2008
COMMITTEE ON REAL ESTATE
Mr. Richard Lanyon, General Superintendent
Title
Authority to issue a six-month permit extension to IMTT-Lemont for the use of approximately 37.25 acres of District land lying at the confluence of the Cal-Sag and Main Channels in Lemont, Illinois, and c/k/a Main Channel Parcel Numbers 26.02 and 26.03. Consideration shall be a six-month permit fee of $101,277.00
Body
Dear Sir:
On October 16, 1952, and January 29, 1959, the Board of Commissioners authorized the issuance of leases to Alexander Chemical Corporation for Main Channel Parcel Numbers 26.02 and 26.03, respectively, and together totaling approximately 37.25 acres of District land lying at the confluence of the Cal-Sag and Main Channels in Lemont, Illinois. Alexander Chemical assigned its lease to North American Car Corporation which subsequently assigned the lease to Powell Duffryn Terminals which later assigned the lease to IMTT-Lemont. Upon expiration of the subject leases on October 31, 2002, the environmental condition of the parcels were investigated and determined to be environmentally impaired. In accordance with the District’s position that all environmental issues arising under an old lease be addressed prior to making the property available for a new lease, IMTT-Lemont has occupied the subject property under permit since the lease expiration in October 2002.
The current two-year permit authorized on November 11, 2006, and issued for IMTT-Lemont to continue to use the subject parcels for bulk chemical and petroleum product storage and distribution facility, and to continue the investigation and remediation of the soil and groundwater at the premises will expire on December 31, 2008. The current annual permit fee for the subject property is $202,554.00.
IMTT-Lemont has worked with District staff to address the environmental issues including performing remediation work and submitting remediation plans which have been approved by the District’s Site Remediation Section. IMTT-Lemont has expressed an interest in bidding for a new lease for the subject property, and the District expects to initiate the statutory bidding process by February 2009.
Additional time is required to finalize certain issues including initiating the process for a new lease. Therefore, it is recommended that IMTT-Lemont’s permit be extended for six months. The permit fee will be $101,277.00 which is the same as the previous permit fee prorated.
It is requested that the General Superintendent recommend to the Board of Commissioners that it authorize and approve the issuance of a six-month permit extension to IMTT-Lemont for the use of approximately 37.25 acres of District land lying at the confluence of the Cal-Sag and Main Channels in Lemont, Illinois, c/k/a Main Channel Parcel Numbers 26.02 and 26.03. Consideration shall be a six-month permit fee of $101,277.00.
It is further requested that the General Superintendent 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 same is approved by the Attorney as to form and legality.
Requested, Frederick M. Feldman, General Counsel, FMF:CL:DRJ:nm
Recommended, Richard Lanyon, General Superintendent
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 December 18, 2008
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