TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 13, 2023
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to issue a one-year permit extension to Peoples Gas Light and Coke Company to continue to use 0.939± total acres of Cal-Sag Channel Parcels 8.01, 8.04 and 8.09 in Palos Township, Illinois as construction staging areas and to dewater a utility tunnel. Consideration shall be a permit fee of $5,000.00
Body
Dear Sir:
Peoples Gas Light and Coke Company (“Peoples Gas”) operates and maintains a 30-inch natural gas pipeline and utility tunnel beneath and across the Cal-Sag Channel (“CSC”) and CSC Parcels 8.01, 8.04 and 8.09 in Palos Township, Illinois, under a non-exclusive easement that commenced March 2, 1967, and, as extended, expires February 28, 2048.
On March 3, 2022, the Board of Commissioners authorized the issuance of a permit (“Permit”) to Peoples Gas on 0.939± total acres of CSC Parcels 8.01, 8.04 and 8.09 for construction staging to perform maintenance work related to its easement, including repair of the 30-inch pipeline and dewatering the utility tunnel. Peoples Gas pays a $5,000.00 annual fee for the Permit, which expires March 13, 2024. Peoples Gas has requested a one-year permit extension until March 13, 2025 to complete its work.
The District’s technical departments have reviewed Peoples Gas’ request and have no objections thereto. A fee in the amount of $5,000.00 is recommended, as the pro-rata share of 10% of the fair market value of the land would yield a fee less than the District’s minimum fee of $5,000.00.
CSC Parcels 8.01 and 8.09 are leased to the City of Palos Hills under a lease that expires May 16, 2041. CSC Parcel 8.04 is leased to the City of Palos Heights under a lease that expires July 15, 2038. Both tenants have consented to the existing Permit, and their consent will also be required for the extension.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of a one-year permit extension to Peoples Gas Light and Coke Company to continue to use 0.939± total acres of Cal-Sag Channel Parcels 8.01, 8.04 and 8.09 in Palos Township, Illinois as construction staging areas and to dewater a utility tunnel. 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 the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute said permit extension agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:BJD: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 July 13, 2023
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