TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 16, 2024
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to enter into a 50-year lease with the Worth Park District for the continued use of approximately 10.7± acres of District real estate known as Cal-Sag Channel Parcel 9.02, located at 116th Street and Oak Park Avenue in Worth, Illinois, commonly known as Homerding Park. Consideration shall be a one-time fee of $10.00
Body
Dear Sir:
The Worth Park District (“Park District”) leases approximately 10.7± acres of District real estate located at 116th Street and Oak Park Avenue in Worth, Illinois, known as Cal-Sag Channel Parcel 9.02, and commonly known as Homerding Park, for public recreational use. The Park District uses the leased premises for a walking path, picnic areas, playground, and other recreational activities. The lease commenced February 12, 1982, and expires February 11, 2032. The rent under the lease was a one-time nominal fee of $1.00.
The Park District has requested to terminate its existing lease and enter into a new 50-year lease to continue using the subject parcel for the same public recreational purposes. By entering into a new 50-year lease, the Park District will have adequate time to plan, design, fund, and construct improvements for Homerding Park, including improved picnic shelters, park benches, playground equipment, and other recreational structures. Also, a longer lease term will enable the Park District to qualify for grant funds to help pay for improvements, as such grants typically require leases longer than 25 years. Under 70 ILCS 2605/8c(11), the requested lease is terminable upon service of a one-year notice if the property becomes essential to the District’s corporate needs.
The District’s technical departments have reviewed the subject request and have no objections thereto.
A one-time nominal fee of $10.00 is recommended, as is customary for a governmental entity using District real estate for a public recreational purpose. Also, the new lease will contain a provision that if the Park District ever generates revenues or profits from the leasehold, rent will include an additional annual fee of 25% of the net profits derived from the site.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the District to enter into a 50-year lease with the Worth Park District for the continued use of approximately 10.7± acres of District real estate known as Cal-Sag Channel Parcel 9.02, located at 116th Street and Oak Park Avenue in Worth, Illinois, commonly known as Homerding Park. Consideration shall be a one-time fee of $10.00.
It is further 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 said lease 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 May 16, 2024
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