TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 15, 2009
COMMITTEE ON REAL ESTATE
Mr. Richard Lanyon, Executive Director
Title
Authority to amend permit issued to Chevron Environmental Management Company for the use of approximately 60 acres of District real estate located east of the Main Channel in unincorporated Will County, Illinois, and known as Main Channel Atlas Parcels 16.01, 16.02, 16.05, and the southernmost portion of 16.03 to include Main Channel Parcel 15.07 comprising an additional 43.90 acres for a total of 103.9 acre permit area, consideration shall be an additional $8,840.00 a month
Body
Dear Sir:
Chevron Environmental Management Company, f/k/a Texaco Refining & Marketing, Inc. (Chevron) currently occupies, under a permit, 4 adjacent parcels comprising approximately 60 acres of District real estate located on the east bank of the Main Channel in unincorporated Will County, Illinois, and known as Main Channel Parcels 16.01, 16.02, 16.05, and the southernmost portion of 16.03. Parcels 16.01 and 16.02 were previously leased by Chevron under two 50-year leases that expired simultaneously on September 30, 2000. Parcels 16.05 and the southern section of 16.03 were added to the permit to allow Chevron to monitor and remediate offsite migration. Parcels 16.01 and 16.02 were used as part of Chevron’s former refinery operations on adjacent land owned by Chevron. On September 21, 2000, the District’s Board of Commissioners authorized the issuance of a permit to Chevron to allow it continued occupancy while environmental testing and remediation were taking place. As extended, the permit expires December 31, 2009.
Chevron has dismantled its refinery site including all operations on the District leasehold sites and is remediating the District’s property and its own fee simple property. Part of the remediation includes the dredging and sediment removal from Deep Run Creek. Deep Run Creek runs through Parcels 16.01, 16.02, 16.03, and 16.05 each already under permit to Chevron. Deep Run Creek also runs through the entire length of Parcel 15.07, which is vacant. Chevron has requested that its permit be amended to include Parcel 15.07 so that it can access and remediate the southern section of Deep Run Creek on District land. The technical departments have reviewed this request and have no objections thereto.
Chevron is currently paying a monthly permit fee of $12,545.00 for the 60-acre area. Chevron’s permit fee shall be increased by $8,840.00 per month for a total monthly fee of $21,385.00, which represents 10% of the pro-rata share of the current fair market value rental for the 103.9 site determined by recent appraisals compounded by the current inflation rate.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct an amendment to the permit issued to Chevron Environmental Management Company for the use of approximately 60 acres of District real estate located east of the Main Channel in unincorporated Will County, Illinois, and known as Main Channel Atlas Parcels 16.01, 16.02, 16.05, and the southernmost portion of 16.03 to include Parcel 15.07 comprising an additional 43.90 acres for a total of 103.9 acre permit area. Consideration shall be an additional $8,840.00 per month.
It is also requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the Chairman of the Committee on Finance and the Clerk to execute the permit extension agreement on behalf of the District after it has been approved by the General Counsel as to form and legality.
Requested, Frederick M. Feldman, General Counsel, FMF:CL:STM:rg
Recommended, Richard Lanyon, Executive Director
Respectfully Submitted, Terrence J. O’Brien, Chairman Committee on Real Estate Development
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for October 15, 2009
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