TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 4, 2021
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authorization to accept initial annual rental bid for Contract 20-363-11 Proposal to Lease for 39 years, 14.048± acres of improved District real estate located at 6400 South Archer Avenue in Bedford Park, Illinois; Main Channel Parcel 33.01 from Ingredion, Inc. in the amount of $107,100.00
Body
Dear Sir:
On December 17, 2020, the Board of Commissioners (“Board”) authorized the advertisement of Contract 20-363-11 for the public tender of bids for a 39-year lease on 14.048± acres of improved District real estate located at 6400 South Archer Avenue in Bedford Park, Illinois; Main Channel Parcel 33.01 for a minimum initial annual rental bid of $107,100.00. The minimum bid represents 10% of the highest of the three appraised values.
One bid was received for the subject proposal and was opened on February 9, 2021. The bid was received from Ingredion, Inc. (“Ingredion”), which is the current tenant of the subject real estate, for an initial annual rental bid of $107,100.00 (10% of the appraised fair market value). Ingredion proposes to lease the site to continue its current use as a pumping station to draw and return non-contact cooling water used in the manufacture of corn products at Ingredion’s adjacent, privately-owned facility in Bedford Park.
Ingredion, previously known as Corn Products International, Inc., has occupied the subject District real estate under a series of leases and permits since January 1, 1908. Ingredion’s present ten-year lease commenced December 30, 2011 and expires December 31, 2021. Ingredion’s current annual rent is $60,975.03 ($4,349.15/acre).
The Finance Department has reviewed Ingredion’s 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 20-363-11 Proposal to Lease for 39 years, 14.048± acres of improved District real estate located at 6400 South Archer Avenue in Bedford Park, Illinois; Main Channel Parcel 33.01 from Ingredion, Inc. in the amount of $107,100.00.
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:EMA:JAW:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
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 for March 4, 2021
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