TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 5, 2018
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authorization to accept initial annual rental bid for Contract 18-360-11 Proposal to Lease for five (5) years, 2.5± acres of District real estate located at 15680 Canal Bank Road in Lemont, Illinois; Main Channel Parcel 23.10 (Western Portion) in the amount of $50,000.00
Body
Dear Sir:
At its meeting of February 1, 2018, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise Contract 18-360-11 Proposal to Lease for five (5) years, 2.5± acres of District real estate located at 15680 Canal Bank Road in Lemont, Illinois; known as Main Channel Parcel 23.10 (Western Portion). The minimum acceptable annual rental bid was established at $50,000.00.
One bid was received for the subject proposal and was opened on March 13, 2018. The bid was received from Hicksgas, LLC d/b/a Liberty Propane (“Hicks”) for a minimum initial annual rental bid of $50,000.00 (10% of the appraised fair market value). Hicks currently occupies the site pursuant to a lease that commenced June 1, 2013, and expires May 31, 2018. Hicks seeks to continue leasing the site for the purpose of operating a retail propane distribution business, including bulk storage.
The Finance Department has reviewed Hicks’ financial and company background information and has reported that it demonstrates the ability to meet its financial obligations under the new proposed lease.
It is requested that the Executive Director recommend to the Board of Commissioners that it accept the initial annual rental bid for Contract 18-360-11 Proposal to Lease for five (5) years, 2.5± acres of District real estate located at 15680 Canal Bank Road in Lemont, Illinois; Main Channel Parcel 23.10 (Western Portion) in the amount of $50,000.00.
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 General Counsel as to form and legality.
Requested, Susan T. Morakalis, 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 April 5, 2018
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