TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 5, 2020
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to issue a six (6) month permit to Builders Asphalt LLC to use North Shore Channel Parcel 6.20 in Skokie, Illinois as a construction staging area. Consideration shall be a permit fee of $37,230.76
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Dear Sir:
Builders Asphalt LLC (“Builders”) has requested a six (6) month permit to use North Shore Channel Parcel 6.20 in Skokie, Illinois as a construction staging area for the temporary storage of asphalt and stone for a public works repaving project on McCormick Boulevard in Skokie, Illinois. Parcel 6.20 comprises approximately 2 acres and is currently unleased.
Builders leases 6.04+ acres of District real estate known as North Shore Channel Parcels 6.06 and 6.11 in Skokie, Illinois under a lease that commenced July 1, 2014, and expires June 30, 2024, for the purpose of operating an asphalt plant, asphalt and concrete recycling and storage of asphalt and concrete materials. The current annual rent is $184,395.91.
Builders also leases an adjacent 1.38+ acre portion of District real estate north and south of the CTA Yellow Line, known as North Shore Channel Parcel 6.14 in Skokie, Illinois, under a lease that commenced March 1, 2018, and expires February 28, 2025, for recycling and storage of road materials used in its asphalt business. The current annual rent is $48,283.74. This lease allows Builders to access its site from Howard Street through the existing District roadway on North Shore Channel Parcels 6.01, 6.02 and 6.20.
Consistent with the lease, the permit would also allow Builders to access the permit premises from Howard Street through the existing District roadway on North Shore Channel Parcels 6.01 and 6.02. Parcel 6.01 is unleased. Parcel 6.02 leased to the Vineyard Christian Church for use as a parking lot. The Vineyard lease provides for the District and its tenants to traverse the site through the existing District roadway.
The District’s technical departments have reviewed Builders’ request and have no objections thereto. The permit fee of $37,230.76 represents a pro-rata share of the site’s fair market value based on a recent appraisal of a nearby comparable site.
The subject property falls within the area subject to the North Shore Channel Resolution which requires that District land located along the North Shore Channel between Devon Avenue and the Wilmette Harbor be leased only for green-space and public recreational use. A waiver of the North Shore Channel Resolution is requested in this instance since the proposed use is under a permit of a short-term duration and is necessary for a public works contract.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of a six (6) month permit to Builders Asphalt LLC to use North Shore Channel Parcel 6.20 in Skokie, Illinois as a construction staging area. Consideration shall be a permit fee of $37,230.76.
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 permit 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 November 5, 2020
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