TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 31, 2017
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authorization to accept initial annual rental bid for Contract 17-362-11 Proposal to Lease for 39-years 5.65± acres of vacant District real estate located at 4101 South Cicero Avenue in Chicago, Illinois; Main Channel Parcel 40.01 from Reliable Materials Corporation of Illinois in the amount of $202,000.00
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Dear Sir:
At its meeting of January 5, 2017, the Board of Commissioners (“Board”) authorized the advertisement of Contract 17-362-11 for public tender of bids a 39-year lease on 5.65± acres of vacant District real estate located at 4101 South Cicero Avenue in Chicago, Illinois, and known as Main Channel Parcel 40.01 for a minimum initial annual rental bid of $177,500.00.
One bid was received for the subject proposal and was opened on March 14, 2017. The bid was received from Reliable Materials Corporation of Illinois (“Reliable”) for an initial annual rental bid of $202,000.00 (11.38% of the appraised fair market value). Reliable proposes to use the site to recycle construction and demolition debris, transfer uncontaminated dirt and soil, and store trucks, construction materials and equipment.
The Finance Department has reviewed Reliable’s financial and company background information and has reported that it demonstrates the ability to meet its financial obligations under the new lease.
It is requested that the Executive Director recommend to the Board of Commissioners that it accept the initial annual rental bid for Contract 17-362-11 Proposal to Lease for 39-years 5.65± acres of vacant District real estate located at 4101 South Cicero Avenue in Chicago, Illinois; Main Channel Parcel 40.01 from Reliable Materials Corporation of Illinois in the amount of $202,000.00.
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 lease agreement after it has been approved by the Acting General Counsel as to form and legality.
Requested, Susan T. Morakalis, Acting General Counsel, STM:CMM:npe
Recommended, Darlene LoCascio, Director of Procurement and Materials Management
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners August 31, 2017
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