TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 7, 2016
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authorization to amend Board Order of December 17, 2015, regarding Authority to Advertise Contract 16-361-11 for public tender of bids a 36-year lease on 0.535 acres of District real estate located at 20 Harbor Drive in Wilmette, Illinois; North Shore Channel Parcel 1.14. The minimum initial annual rental bid was established at $138,500.00, Agenda Item No. 9, File No. 15-1385
Body
Dear Sir:
At its meeting of December 17, 2015, the Board of Commissioners duly ordered the above stated action, Agenda Item No. 9, File No. 15-1385. The minimum bid established at $138,500.00 represented 10% of the highest of the three appraised values. One bid was received for the subject proposal and was opened on January 26, 2016. The bid was received from Sheridan Shore for a minimum initial annual rental bid of $140,207.00. Thereafter, Sheridan Shore advised staff that the new rental payments would not be sustainable under a new lease and as a result withdrew its bid.
Thereafter, the Wilmette Harbor Association requested to lease the subject site. A variance of Board policy requiring that the minimum initial annual rental bid under lease be established at 10% of the appraised fair market value is recommended in this instance and instead that the minimum initial annual rental bid be established at 6% of the highest of the three appraised values for a minimum initial annual rental bid of $83,100.00. Such recommendation is being made in this instance since there was only one bidder at the 10% rate and such bidder withdrew its bid, thereby likely leaving the site vacant unless re-bid for a lesser amount.
It is recommended that a variance of the Board policy requiring that the minimum initial annual rent be established at 10% of the highest of the three appraised values instead be established at 6% of the highest of the three appraised values and that the Director of Procurement and Materials Management be authorized to advertise said 0.535 acres of real estate as available for lease for a term of thirty-six (36) years at the minimum initial annual rental bid of $83,100.00 and report the results of the bidding to the Board of Commissioners for further action.
All other information provided in the transmittal letter is correct. Therefore, it is requested that the aforesaid Board Order of December 17, 2015, be amended to effect the changes set forth above.
Requested, Ronald M. Hill, General Counsel, RMH:SM:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement and Materials Management
Disposition of this 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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