TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 5, 2018
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to grant a 25-year, 6,682 + sq. ft. non-exclusive easement to Peoples Gas Light and Coke Company to continue to construct, reconstruct, operate, maintain, repair, replace, and remove a 30-inch natural gas pipeline on District North Shore Channel Parcel 9.10 located near the intersection of Francisco Avenue and Ainslie Street in Chicago, Illinois. Consideration shall be an initial annual easement fee of $14,000.00
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Dear Sir:
On September 2, 1993, the District granted a 25-year, 6,682 + sq. ft. non-exclusive easement to Peoples Gas Light and Coke Company (“Peoples Gas”) to construct, reconstruct, operate, maintain, repair, and remove a 30-inch natural gas pipeline on District North Shore Channel Parcel 9.10 located near the intersection of Francisco Avenue and Ainslie Street in Chicago, Illinois. The easement consists of a 20’ x 315.32’ strip of land and a 15’ x 25’ strip of land which connect to an adjacent natural gas pipeline operated by Peoples Gas under a permanent easement. The subject easement expires September 1, 2018. Peoples Gas currently pays an annual easement fee of $6,547.73.
Peoples Gas has requested a new 25-year easement to continue to operate and maintain the 30-inch natural gas pipeline. Parcel 9.01 is leased to the Chicago Park District under a 99-year public recreational lease that commenced in 1961. The easement is subject to the Chicago Park District’s consent.
The District’s technical departments have reviewed Peoples Gas’ request for an easement and have no objections thereto. An initial annual easement fee of $14,000.00 is recommended, which represents 10% of the appraised fair market value.
It is requested that the Executive Director recommend to the Board of Commissioners that it grant a 25-year, 6,682 + sq. ft. non-exclusive easement to Peoples Gas Light and Coke Company to continue to construct, reconstruct, operate, maintain, repair, and remove a 30-inch natural gas pipeline on District North Shore Channel Parcel 9.10 located near the intersection of Francisco Avenue and Ainslie Street in Chicago, Illinois. Consideration shall be an initial annual easement fee of $14,000.00.
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 said easement agreement on behalf of the District after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:CMM:JW:vp
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, David J. Walsh, 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 April 5, 2018
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