TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 18, 2026
COMMITTEE ON REAL ESTATE
Mr. John P. Murray, Executive Director
Title
Authorization to declare as surplus and not required for corporate purposes, and to sell to the United States of America, 106.63± acres of District land located east and west of the Main Channel near Romeo Road/135th Street in Will County, Illinois, known as Main Channel Parcels 18.03, 19.01, 19.02 and 19.04. Consideration shall be $6,250,000.00
Body
Dear Sir:
On February 7, 2002, the District’s Board of Commissioners (“Board”) granted an easement to the United States of America to construct and maintain an electronic barrier system in the Main Channel north of the Romeo Road/135th Street Bridge in Will County, Illinois, adjacent to Main Channel Parcel 19.04, in conjunction with the Fish Barrier Project. The easement authorized the United States of America, through the United States Army Corps of Engineers (“Corps”), to construct, operate and maintain aquatic nuisance species barriers designed to prevent the upstream migration of Asian Carp. Since 2002, the easement has been amended several times to allow additional uses necessary and incident to the Fish Barrier Project, including constructing and removing temporary structures on Parcel 19.04, and storing and removing equipment and supplies thereon, as well as on three additional District parcels known as Main Channel Parcels 18.03, 19.01, and 19.02. The easement on these four parcels, comprising 106.63± acres, as extended, expires November 30, 2026. Transmittal letters to the Board in 2022, 2023, 2024, and 2026 advised that the Corps intends to purchase the subject District parcels.
The Corps now wishes to proceed with its purchase request of these parcels for long-term operation and maintenance of the Fish Barrier Project. The District’s technical departments have reviewed the Corps’ request and have no objection to the proposed conveyance to the United States of America.
Marine Material Handling Corporation (“Marine”) previously leased Parcel 19.04 as part of its 39-year lease on Main Channel Parcels 19.03 and 19.04 comprising 15.2846 acres that commenced September 1, 2001, and expires August 31, 2040. In 2006, Marine surrendered Parcel 19.04, except for a 0.1466 acre-portion, reducing its leasehold acreage from 15.2846 acres to 12.656 acres, to allow use of the surrendered land by the Corps for purposes related to the Fish Barrier Project. As part of this transaction, Marine has agreed to surrender the remainder of Parcel 19.04, comprising 0.1466-acres, subject to a corresponding rent reduction. The purchase price for the sale of these parcels includes the rental revenue the District would have received for the surrendered portion of Marine’s leasehold up to the lease’s expiration.
Parcels 18.03, 19.01 and 19.04 are each encumbered by easements previously granted by the District to third parties. Commonwealth Edison Company (“ComEd”) has a non-exclusive easement on all of Parcel 18.03 for constructing, operating and maintaining an electrical substation and overhead and underground electrical transmission lines. The easement expires December 31, 2036, and the current annual fee is $94,741.11. Enbridge Energy, LP has a 1.226-acre non-exclusive easement, a portion of which traverses Parcel 19.01, for operating and maintaining a 34” subterranean petroleum pipeline and a pipeline bridge suspended over the Main Channel. The easement expires December 18, 2044, and the current annual fee is $6,709.46. Lastly, ComEd has a 21,090 sq. ft. non-exclusive easement on Parcel 19.04 for constructing, operating and maintaining an electrical substation and overhead and underground electrical transmission lines. The easement expires July 14, 2042. The easement fee was a one-time lump sum payment of $125,000.00. As part of the sale of these parcels, the District will retain the right to continue these easements to their expiration dates and to extend them if requested by these entities and approved by the Board. The District will also retain a perpetual easement to traverse these parcels for accessing adjacent District lands.
The District and the Corps have reached a negotiated total purchase price of $6,250,000.00. This amount is based on an appraisal from the Corps, comparable sales in the area, the rental revenue the District would have received for the surrendered portion of Marine’s leasehold up to that lease’s expiration, and the revenue the District will continue receiving from the existing third-party easements.
It is requested that the Executive Director recommend to the Board of Commissioners that it pass the following orders:
1. That the subject District land, comprising 106.63± acres located east and west of the Main Channel near Romeo Road/135th Street in Will County, Illinois, known as Main Channel Parcels 18.03, 19.01, 19.02 and 19.04, be declared as surplus and not required for corporate purposes, and may be sold to the United States of America.
2. That the fair market value of the subject District land be established at $6,250,000.00.
3. That the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute all documents necessary for the District to sell the subject District land to the United States of America, and amend the District’s lease with Marine reducing its leasehold’s acreage from 12.656 acres to 12.509 acres, after such documents are approved by the General Counsel as to form and legality.
4. That the General Counsel be authorized and directed to execute and deliver all other documents necessary for the District to sell the subject District land to the United States of America.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:CMM:MSZ
Recommended, John P. Murray, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for June 18, 2026
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