TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 15, 2009
COMMITTEE ON STORMWATER MANAGEMENT
Mr. Richard Lanyon, Executive Director
Title
Authority for payment to Wheeling Park District for land rights for the construction of the Heritage Park Flood Control Facility in an amount not to exceed $3,600,000.00, Accounts 501-50000-656010 and 667340, Stormwater Management Fund
Body
Dear Sir:
On November 6, 2008, the Board of Commissioners authorized the District to enter into an intergovernmental agreement (IGA) with the Wheeling Park District (WPD) and the Village of Wheeling (Village) for the construction of a flood control facility and site improvements at Heritage Park. The proposed project, known as the Heritage Park Flood Control Facility, will provide compensatory storage required by the Illinois Department of Natural Resources for Levee 37, a United States Army Corps of Engineers project located on the Des Plaines River.
The preliminary cost estimate for the Heritage Park Flood Control Facility is estimated to be $30 million; this figure includes construction of the stormwater storage facilities, site improvements and land rights. The stormwater facility components include reservoir excavation and installation of necessary appurtenances for operation of the facility, such as spillways, piping, and a pump station. Heritage Park improvements include installation of passive and active recreational facilities. The monetary consideration of $3,600,000.00 requested hereunder represents just compensation to WPD for conveyance of property to the District, permanent and temporary easements, permanent loss of an office and storage building, and license to dispose of excavated material from Heritage Park at a nearby location to be owned by WPD. The payment to WPD has been justified by an independent fair market value appraisal of WPD property impacted by the Heritage Park Flood Control Facility and an estimate of cost savings associated with WPD providing a nearby site for disposal of excavated materials from Heritage Park.
The terms of the IGA have been negotiated between the District, WPD and the Village, and an agreement in principle has been reached, subject to approvals from all entities’ respective Boards. It is anticipated the IGA will be executed in 2009. The IGA includes a contingency clause stipulating that WPD shall designate a disposal site located within 5 miles of Heritage Park for the District’s use by February 28, 2010 or either party can terminate the IGA; the payment of $3,600,000.00 to WPD will not be disbursed until WPD has designated a suitable location per the terms of the IGA and all aspects of land rights acquisition have been satisfactorily resolved. The closing of the land rights aspects of this transaction, including payment of the monetary considerations to WPD, will be administered through the escrow services of a financial institution authorized to render escrow services in Illinois. The IGA is currently being reviewed by the District’s Law Department as to form and legality.
Funds for this expenditure are contingent on the Board of Commissioners' approval of the District's budget for 2010 and will be paid from Accounts 501-50000-656010 and 667340, Stormwater Management Fund.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize payment of $3,600,000.00 to WPD as monetary consideration for necessary land rights and easements for the Heritage Park Flood Control Facility provided all terms of the IGA are satisfied.
It is further requested that the 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 any necessary documents in connection with the land rights associated with the Heritage Park Flood Control Facility on behalf of the District after they are approved by the Director of Engineering as to technical matters and by the General Counsel as to form and legality.
Requested, Joseph P. Sobanski, Director of Engineering, WSS:JPM
Recommended, Richard Lanyon, Executive Director
Respectfully Submitted, Debra Shore, Chairman Committee on Stormwater Management
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for October 15, 2009