TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 1, 2022
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to grant Peoples Gas Light and Coke Company a 25-year, 40,645± sq. ft. non-exclusive easement to construct, reconstruct, operate, maintain, repair, replace and remove a 30” high pressure natural gas transmission line, with appurtenances thereto, and a concrete tunnel underneath and across Cal-Sag Channel Parcels 8.01, 8.04, 8.09, and the Cal-Sag Channel, located in Palos Township, Illinois. Consideration shall be an initial annual fee of $12,850.00
Body
Dear Sir:
On March 13, 1967, the District granted a 25-year non-exclusive easement to Peoples Gas Light and Coke Company (“Peoples Gas”) to construct, reconstruct, operate, maintain, repair, replace and remove a 30” high pressure natural gas transmission line and a concrete tunnel underneath and across Cal-Sag Channel Parcels 8.01, 8.04, 8.09, and the Cal-Sag Channel, located in Palos Township, Illinois. The current easement, as extended, expires February 28, 2023.
Peoples Gas has requested to renew the easement for an additional 25-year term. The easement area is approximately 40,645 sq. ft.
Cal-Sag Channel Parcels 8.01 and 8.09 are leased to the City of Palos Hills under a lease that commenced May 17, 2002 and expires May 16, 2041. Cal-Sag Channel Parcel 8.04 is leased to the City of Palos Heights under a lease that commenced July 16, 2004 and expires July 15, 2038. Both leases are for recreational purposes. District staff is coordinating with the municipalities and has received no objections to the easement renewal.
The technical departments have reviewed this request and have no objections thereto. An initial annual fee of $12,850.00 is recommended as this amount represents 10% of the fair market value of the site.
It is requested that the Executive Director recommend to the Board of Commissioners that it grant Peoples Gas Light and Coke Company a 25-year, 40,645± sq. ft. non-exclusive easement to construct, reconstruct, operate, maintain, repair, replace and remove a 30” high pressure natural gas transmission line, with appurtenances thereto, and a concrete tunnel underneath and across Cal-Sag Channel Parcels 8.01, 8.04, 8.09, and the Cal-Sag Channel, located in Palos Township, Illinois. Consideration shall be an initial annual fee of $12,850.00.
It is also 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 easement agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:MTC:NOC: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 December 1, 2022
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