TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 16, 2020
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
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Authority to pay final just compensation in the amount of $1,300,000.00 for the partial acquisition of, and temporary construction easement on, the real estate commonly known as Meadowcreek Mobile Home Park, 4503 W. Lake Street, Melrose Park, Illinois, to settle the eminent domain lawsuit entitled The Metropolitan Water Reclamation District of Greater Chicago v. Meadowcreek Mobile Park, Inc., et al., Case No. 19L050592 in the Circuit Court of Cook County, Illinois, and to pay relocation costs in an amount not to exceed $12,600.00 and occupancy fees in an amount not to exceed $10,000.00, Account 501-50000-656010, Stormwater Management Fund
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Dear Sir:
On August 6, 2015, the Board of Commissioners (“Board”) adopted Ordinance No. R15-006 establishing the right-of-way for the construction, operation and maintenance of the Addison Creek Channel Improvement Project located in the municipalities of Northlake, Stone Park, Melrose Park, Bellwood, Westchester, and Broadview (Contract 11-187-3F) (“Project”). Ordinance R15-006 was subsequently amended by Ordinances R15-007, R18-003, and R19-002 to include additional right-of-way needed for the Project. Said Ordinances authorized and directed the Executive Director to negotiate with the respective owners to acquire fee simple title or such lesser interests, as appropriate, in and to the real estate described in the Ordinances.
On September 6, 2018, the Board authorized the District to enter into intergovernmental agreements with the City of Northlake, Village of Stone Park, Village of Melrose Park, Village of Bellwood, Village of Westchester, and Village of Broadview for the Project. The proposed channel improvements are broken down into nine reaches along approximately 15,300 linear feet of Addison Creek beginning at Hirsch Street in the City of Northlake and continuing to Cermak Road in the Village of Broadview. The Addison Creek channel improvements, along with the proposed Addison Creek Reservoir, will provide flood reduction benefits to approximately 2,200 properties.
The Project requires the partial acquisition of the property commonly known as the Meadowcreek Mobile Home Park located at 4503 W. Lake Street in Melrose Park, Illinois. The District also requires a temporary easement for construction purposes at this location. The property is owned by Meadowcreek Mobile Park, Inc. and is improved with a manufactured housing community containing 282 mobile home pad sites and two commercial buildings. The entire property consists of approximately 16.8 acres; however, the District is acquiring approximately 1.0 acre (16 mobile home spots) in fee simple title and a temporary construction easement of approximately 0.76 acres.
After the parties could not agree on the amount of compensation for the property interests needed, the District filed an eminent domain lawsuit entitled The Metropolitan Water Reclamation District of Greater Chicago v. Meadowcreek Mobile Park, Inc., et al., Case No. 19L050592 in the Circuit Court of Cook County, Illinois. Since filing the lawsuit on September 25, 2019, the District and the owner have agreed to settle the matter in the amount of $1,300,000.00.
It is the opinion of the General Counsel and Special Counsel, Neal & Leroy, LLC that this amount is within the range of value for the property interests needed based on the fair market value appraisals obtained by the District and the property owner. The District’s appraisal, prepared by Woodland Valuation Services, LLC, was $1,101,535.00. The owner’s appraisal, prepared by Jones Lang LaSalle (“JLL”), was $1,628,000.00. Settlement of this matter will save the District substantial costs that would otherwise be required to proceed to a quick-take hearing and trial, including attorney’s fees and expert witness fees. In addition, through this negotiated settlement, the District engineers have been able to address the property owner’s concerns with the Project design plans, such as ensuring the utility lines that serve the remaining mobile homes will not be impacted by the fee simple acquisition.
This partial fee acquisition impacts 16 mobile homes, one of which is owned by Meadowcreek Mobile Park, Inc. (4617 Meadow Terrace). That mobile home must be moved to another vacant site in the mobile home park. The District’s relocation consultant, Urban Relocation Services, Inc., has determined that the property owner is entitled to moving expenses in an amount not to exceed $12,600.00. This amount was verified after consulting with three moving companies. This includes the cost to breakdown the mobile home (disconnecting utilities, removing the awnings, skirting, porch deck, etc.), transportation to the new location, and reassembly in accordance with applicable building codes. These relocation costs are required to be paid by the District under the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act.
In addition, the property owner is entitled to an occupancy fee in connection with the mobile homes that the District has already purchased. The owner has allowed these vacant mobile homes to remain on the Meadowcreek property, provided that the District pays an occupancy fee equal to the monthly rent from the date that the former residents moved out ($520.00 per month per mobile home). This is also recommended as part of this settlement because it would save the District the much larger expense of moving each of those mobile homes to another location, which, as noted above, could cost upwards of $12,000.00 per mobile home. Instead, this occupancy fee is expected not to exceed $10,000.00 in total for the mobile homes that the District has already purchased.
Accordingly, it is requested that the Executive Director recommend to the Board of Commissioners that it adopt the following orders:
1. That the Board authorize payment of final just compensation in the amount of $1,300,000.00 for the partial acquisition of, and temporary construction easement on, the real estate commonly known as Meadowcreek Mobile Home Park, 4503 W. Lake Street, Melrose Park, Illinois, to settle the eminent domain lawsuit entitled Metropolitan Water Reclamation District of Greater Chicago v. Meadowcreek Mobile Park, Inc., et al., Case No. 19L050592 in the Circuit Court of Cook County, Illinois;
2. That the Executive Director be authorized to make intermittent payments to the property owner, Meadowcreek Mobile Park, Inc., in an amount not to exceed $12,600.00, for eligible costs in connection with relocation, as provided for in the Uniform Relocation Assistance and Real Property Acquisition Policies Act.
3. That the Executive Director be authorized to make intermittent payments to the property owner, Meadowcreek Mobile Park, Inc. in an amount not to exceed $10,000.00 for occupancy fees for the mobile homes already purchased by the District.
4. That the General Counsel be authorized and directed to execute and deliver all other documents and take such other actions as may be necessary to effectuate said settlement and to attain said property interests for the Project.
Requested, Susan T. Morakalis, General Counsel and Catherine A. O’Connor, Director of Engineering; STM:CAO:EMA:BJD:CN:nm
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 16, 2020
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