TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 6, 2020
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to commence statutory procedures to lease 5,097+ sq. ft. of District real estate located on the southeastern bank of the Collateral Channel at 3152 South California Avenue in Chicago, Illinois; Main Channel Parcel 42.09 (Deferred from the July 16, 2020 Board Meeting)
Body
Dear Sir:
Lakeshore Recycling Systems, LLC (“Lakeshore”) leases 6.79 acres of District real estate located at 3152 South California Avenue in Chicago, Illinois; Main Channel Parcels 42.08 and 42.12 under a lease that commenced July 15, 2000, and expires June 14, 2039. Under its lease, Lakeshore operates a municipal solid waste transfer station and a reprocessable construction/demolition material facility servicing the Chicagoland area. Parcel 42.08’s western boundary line stops at the top of the southeastern bank of the Collateral Channel and does not extend to the water’s edge. Lakeshore’s current annual rent is $233,010.00 ($34,316.64/acre).
Lakeshore now requests to lease 5,097+ sq. ft. of District real estate located on the southeastern bank of the Collateral Channel between its leasehold’s western boundary line and the water’s edge. The proposed use of the 5,097+ sq. ft. area is constructing and maintaining a barge dock for loading and unloading materials. The materials loaded onto a barge will be tightly baled, compressed, secured and sealed in heavy-duty wrap. The requested lease term is 19 years to coincide with the expiration of its lease on the adjacent parcels. The addition of this dock is not expected to affect any use of the Collateral Channel by the City of Chicago’s Department of Transportation (CDOT), which has a barge dock along the northeastern bank of the Collateral Channel.
The District’s technical departments have reviewed this lease request and have indicated that the subject site is not currently needed for corporate use and that they have no technical objections thereto.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the General Counsel to commence statutory procedures to lease 5,097+ sq. ft. of District real estate located on the southeastern bank of the Collateral Channel at 3152 South California Avenue in Chicago, Illinois; Main Channel Parcel 42.09 upon the terms and conditions set forth herein.
Requested, Susan T. Morakalis, General Counsel, STM:EMA:CMM: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 August 6, 2020
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