TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 23, 2020
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to grant a 25-year, 3.223± acre non-exclusive easement to West Shore Pipe Line Company to continue to construct, operate, maintain, repair and remove a 16-inch subterranean petroleum pipeline on Main Channel Parcels 26.02, 26.03 and 26.07 and suspended over the Main Channel in Lemont Township, Illinois. Consideration shall be an initial annual fee of $29,000.00
Body
Dear Sir:
Since 1968, Badger Pipe Line Company n/k/a West Shore Pipeline Company (“West Shore”) has operated and maintained a 16-inch subterranean pipeline on Main Channel Parcels 26.02, 26.03 and 26.07 and suspended over the Main Channel in Lemont Township, Illinois. The pipeline then traverses onto non-District owned land. The easement, as extended, expires February 8, 2020. The current annual easement fee is $14,398.83.
West Shore has requested a new 25-year easement to continue to operate and maintain the pipeline. Parcels 26.02 and 26.03 are leased by IMTT-Illinois under a lease that commenced July 1, 2011 and expires June 30, 2050 for bulk chemical and petroleum storage and distribution. Parcel 26.07 is leased by the Forest Preserve District of DuPage County under a lease that commenced April 1, 1993 and expires March 31, 2033 for the Centennial and I & M Heritage Corridor Trail. Both leases are subject to existing pipeline easements, including West Shore’s easement.
The District’s technical departments have reviewed West Shore’s request and have no objections thereto. An easement fee of $29,000.00 is recommended, which represents 10% of the appraised fair market value of the easement premises.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the grant of a 25-year, 3.223± acre non-exclusive easement to West Shore Pipe Line Company to continue to construct, operate, maintain, repair and remove a 16-inch subterranean petroleum pipeline on Main Channel Parcels 26.02, 26.03 and 26.07 and suspended over the Main Channel in Lemont Township, Illinois. Consideration shall be an initial annual fee of $29,000.00.
It is also requested that the Executive Director recommend to the Board of Commissioners that the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute said easement agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:EMA:npe
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 January 23, 2020
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