TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 21, 2008
COMMITTEE ON REAL ESTATE
Mr. Richard Lanyon, General Superintendent
Title
Authority to advertise for public tender of bids a 39-year lease of approximately 25.50 acres of District real estate located at 10100 Archer Avenue in Willow Springs, Illinois, and known as Main Channel Atlas Parcel 28.01. The minimum initial rental bid shall be established at $327,500.00. Lease Number 08-360-11
Body
Dear Sir:
At its meeting of March 15, 2007, the Board of Commissioners authorized the commencement of statutory procedures for the leasing of approximately 25.50 acres of District real estate located at 10100 Archer Avenue in Willow Springs, Illinois, and known as Main Channel Atlas Parcel 28.01. The site is currently used by Rowell Chemical Corporation as a storing, shipping, and blending facility for dry and liquid materials such as bleach and acids. Rowell Chemical Corporation previously occupied the site under a lease that expired December 31, 2006, and remains onsite under an interim permit that expires December 31, 2008.
The site is improved with several aboveground storage tanks and other improvements which became the property of the District upon expiration of the lease. The appraised values, therefore, include the land and the improvements.
Pursuant to statute, the lead applicant, Rowell Chemical Corporation submitted two appraisal, and the Law Department obtained a third appraisal as follows:
Appraiser Value
McCormick & Wagner, LLC
Terrence P. McCormick $2,555,000.00
Prime Appraisal, LLC
Robert Boyle, MAI $2,815,000.00
Real Estate Analysis Corporation
Michael J. Kelly
(District’s appraiser) $3,275,000.00
It is therefore recommended that, in accordance with District policy, the subject property’s fair market value be based upon the highest of the three appraisals and established at $3,275,000.00 and that the minimum annual rental bid be established at 10% of the property’s fair market value (i.e. $327,500.00). It is also recommended that the land be available for a 39-year lease.
It is requested that the General Superintendent recommend to the Board of Commissioners that it authorize and approve the issuance of the following orders:
1. The improved real estate consisting of approximately 25.50 acres located at 10100 Archer Avenue in Willow Springs, Illinois, and known as Main Channel Atlas Parcel 28.01 depicted in the exhibit attached hereto is not immediately needed for the District’s corporate purposes and available for lease as set forth herein;
2. The fair market value of the approximately 25.50 acres of improved real estate be established at $3,275,000.00, and the minimum initial annual rental be established at 10% thereof or $327,500.00; and
3. The Purchasing Agent be authorized and directed to advertise said approximately 25.50 acres of improved real estate as available for lease for a term of 39 years at the minimum initial annual rental bid of $327,500.00 and report the results of the bidding to the Board of Commissioners for further action.
Requested, Frederick M. Feldman, Attorney, FMF:CL: STM:nm
Recommended, Richard Lanyon, General Superintendent
Respectfully Submitted, Terrence J. O’Brien, Chairman Committee on Real Estate Development
ORDERED passed by affirmative roll call vote of a majority of the Commissioners present this February 21, 2008. Approved, President Terrence J. O’Brien
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