TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 6, 2012
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to issue a 6-month permit extension agreement to Kovas Communications, Inc. for continued use of 50,000 square feet of District real estate located within the Terrence J. O'Brien Water Reclamation Plant at 3500 W. Howard Street in Skokie, Illinois, for the continued operation, maintenance and removal of four (4) freestanding radio transmission antenna towers, a transmitter building, an underground grid system and appurtenances related thereto. Consideration shall be a fee of $40,000.00
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Dear Sir:
Kovas Communications, Inc. ("Kovas") has occupied the referenced property under a series of permits over the past 31 years for the operation and maintenance of four (4) freestanding radio transmission antenna towers, a transmitter building, an underground grid system and appurtenances related thereto ("Facilities). The permit, as renewed and extended, expires December 31, 2012. The annual permit fee is $75,000.00. Due to the subject property's proximity to District plant operations, Kovas has occupied the subject property under a permit rather than a lease, as the District retains much greater authority to terminate the agreement if corporate needs require the same.
Prior to the last permit extension period, the technical departments indicated that the subject property would soon be required for the District's corporate use. In response thereto, Kovas was in discussions with District tenant, Vineyard Christian Church of Evanston, which occupies North Shore Channel Parcel 6.02, to sublease a portion of its leasehold to relocate and continue to operate its Facilities. Kovas estimated that it would not take longer than December 31, 2012 to finalize its sublease agreement and remove its Facilities from the District's plant property.
After the permit extension was granted, the District's technical departments re-evaluated its corporate needs and determined that Kovas' use of the property would not interfere with proposed corporate projects at the Plant. Kovas decided to stay at its current location to save the work and expense of moving its Facilities across the North Shore Channel. At the present time, a survey and appraisals are being obtained so that a long-term easement agreement can be entered between the District and Kovas. Therefore, a 6-month permit extension is requested. A permit extension fee of $40,000.00 is recommended since this figure represents the pro-rata share of 10% of the latest appraised fair market value for the site.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the issuance of a 6-month permit extension agreement to Kovas Communications, Inc. for the continued use of 50,000 square feet of District real estate located within the Terrence J. O'Brien Water Reclamation Plant at 3500 W. Howard Street in Skokie, Illinois, for the continued operations, maintenance and removal of four (4) freestanding radio transmission antenna towers, a transmitter building, an underground grid system and appurtenances related thereto. Consideration shall be a fee of $40,000.00.
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 the permit extension agreement after it is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM:MLD:ldl
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Cynthia M. Santos, Vice-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 6, 2012
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