TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 16, 2020
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to issue a 12-month permit extension to Wood River Pipe Lines LLC for construction staging on a 21,375 sq. ft. portion of Main Channel Parcels 31.02 and 31.03 in Willow Springs, Illinois. Consideration shall be a permit fee of $5,000.00
Body
Dear Sir:
Since 1971, Wood River Pipe Lines LLC (“Wood River”) has operated and maintained a 14’’ subterranean petroleum pipeline on 31,875± sq. ft. of District land traversing Main Channel Parcels 31.01, 31.02, 31.03, the Main Channel and the Des Plaines River in Willow Springs, Illinois. The pipeline is located on the east side of the I-294 Mile-Long Bridge (“Bridge”). The pipeline delivers jet fuel to O’Hare International Airport. Wood River’s current easement for this pipeline commenced June 23, 1996 and expires June 22, 2021. The current annual easement fee is $6,135.80.
The Illinois State Toll Highway Authority (“ISTHA”) is constructing system-wide repairs and improvements to I-294 from Balmoral Avenue in Rosemont to 95th Street in Oak Lawn, including the reconstruction and widening of the Bridge which spans the Main Channel, the Des Plaines River, and Main Channel Parcels 31.01, 31.02, and 31.03 in Willow Springs. On April 18, 2019, the Board of Commissioners (“Board”) authorized the sale of a 17.033-acre portion of Main Channel Parcel 31.01 to ISTHA to expand the Bridge. This 17.033-acre section contained a portion of Wood River’s easement, which required rerouting due to ISTHA’s project.
As part of this expansion, Wood River must relocate its pipeline by constructing a new pipeline west of the Bridge and terminating the operation of its existing pipeline on the east side of the Bridge.
To assist in this relocation, on June 20, 2019, the Board authorized the issuance of a 12-month, 21,375 sq. ft. permit to Wood River on Main Channel Parcels 31.02 and 31.03 in Willow Springs, Illinois for construction staging to allow Wood River to, remove certain portions and leave in place other portions of its existing pipeline on the east side of the Bridge. Wood River paid a $5,000.00 fee for the permit, which expires June 19, 2020. The relocation was anticipated to be completed prior to this date.
Wood River has notified the District that unforeseen construction delays and personnel shortages created by Covid-19 will prevent the pipeline relocation from being completed before the current permit’s expiration date. Accordingly, Wood River is requesting a 12-month permit extension, with a new expiration date of June 19, 2021
Parcels 31.02 and 31.03 are under lease to the Cook County Forest Preserve District under two separate leases until March 31, 2033, and April 30, 2043, respectively. The Cook County Forest Preserve District has consented to this permit extension.
The District’s technical departments have reviewed Wood River’s permit extension request and have no objections thereto. A permit fee of $5,000.00 is recommended.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the issuance of a 12-month permit extension to Wood River Pipe Lines LLC for construction staging on a 21,375 sq. ft. portion of Main Channel Parcels 31.02 and 31.03 in Willow Springs, Illinois. Consideration shall be a permit fee of $5,000.00.
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 permit after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:EMA:JAW: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 April 16, 2020
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