TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 7, 2016
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to issue a 3-year permit extension to BP to continue to access District real estate to perform environmental remediation and monitoring activities at BP’s former leasehold located at 3266 W. Devon Avenue in Lincolnwood, Illinois; North Shore Channel Parcel 7.03. Consideration shall be an annual fee of $52,272.00
Body
Dear Sir:
At its meeting of April 1, 2010, the Board of Commissioners authorized the issuance of a 6-month permit to BP to remove underground storage tanks, conduct soil borings, and install temporary monitoring wells at BP’s former leasehold located at 3266 W. Devon Avenue in Lincolnwood, Illinois (c/k/a North Shore Channel Parcel 7.03). BP, successor in interest to Standard Oil Company, had leased the subject District land from 1955 to 1979 for the operation of a gasoline service station. Upon expiration of its lease, BP failed to remove its underground storage tanks and remediate contamination related thereto. After extensive negotiations between the parties, BP agreed to re-enter the site to perform the afore-referenced work. The District’s Engineer of Site Remediation reviewed and approved BP’s investigation and site remediation plans.
The current permit, as extended, expires April 15, 2016. To date, BP has conducted and analyzed soil borings, installed, sampled and analyzed monitoring wells, and removed 4 underground storage tanks, piping and contaminated soils. It is recommended that the permit be extended for 3-years so that BP can install additional monitoring wells, perform additional soil remediation activities to ensure that all contaminated soils have been removed and to obtain a No Further Remediation letter from the IEPA. The current permit fee is an annual fee of $10.00. However, since the remediation work is taking longer than originally anticipated, it is recommended that the permit extension be subject to an annual fee of $52,272.00 which represents 10% of the site’s fair market value.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of a 3-year permit extension to BP to continue to access District real estate to perform environmental remediation and monitoring activities at BP’s former leasehold located at 3266 W. Devon Avenue in Lincolnwood, Illinois; North Shore Channel Parcel 7.03. Consideration shall be an annual fee of $52,272.00.
It is further 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 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:vp
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Mariyana T. Spyropoulos, Chairman Committee on Real Estate Development
Disposition of the is agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for April 7, 2016
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