TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 5, 2021
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
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Authorization to: (1) grant a 25-year, 0.033± acre non-exclusive easement to Peoples Gas Light & Coke Company to construct, operate, maintain, repair and replace a 10’ x’ 40’ subterranean vault on and beneath that portion of the District’s North Shore Channel Parcel 8.01 located north of Bryn Mawr Avenue and west of Virginia Avenue in Chicago, Illinois and (2) issue a one (1) year permit to Peoples Gas to use a 20,000 sq. ft. portion of Parcel 8.01 as a construction staging area. Consideration shall be an initial annual fee of $5,000.00 for the 25-year easement and a fee of $5,000.00 for the one (1) year permit
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Dear Sir:
Peoples Gas Light & Coke Company (“Peoples Gas”) has requested: (1) a 25-year, 0.033± acre non-exclusive easement to construct, operate, maintain, repair and replace a 10’ x’ 40’ subterranean vault on and beneath that portion of the District’s North Shore Channel Parcel 8.01 (“Parcel 8.01”) located north of Bryn Mawr Avenue and west of Virginia Avenue in Chicago, Illinois and (2) a one (1) year permit to use a 20,000 sq. ft. portion of Parcel 8.01 as a construction staging area. Peoples Gas currently operates a 36” natural gas pipeline within a 7,696’ x 20’ strip of District real estate located between Ainslie Street and Peterson Avenue in Chicago that traverses Parcel 8.01 under an existing perpetual easement that commenced in 1960. A portion of the vault will be constructed within Peoples Gas’ existing easement premises. Parcel 8.01 is leased to the Chicago Park District (“Park District”) under a lease that commenced April 12, 1961 and expires April 11, 2061. Accordingly, the easement and permit are subject to the consent of the Park District.
The District’s technical departments have reviewed Peoples Gas’ easement and permit requests and have no objections thereto. It is recommended that an initial annual easement fee of $5,000.00 be assessed for the 25-year easement and a fee of $5,000.00 be assessed for the one (1) year permit, as the pro-rata share of 10% of the fair market value of the easement and permit premises would each respectively yield a fee less than the District's minimum fee of $5,000.00.
It is requested that the Executive Director recommend to the Board of Commissioners that it: (1) grant a 25-year, 0.033± acre non-exclusive easement to Peoples Gas Light & Coke Company to construct, operate, maintain, repair and replace a 10’ x’ 40’ subterranean vault on and beneath that portion of the District’s North Shore Channel Parcel 8.01 located north of Bryn Mawr Avenue and west of Virginia Avenue in Chicago, Illinois and (2) issue a one (1) year permit to Peoples Gas to use a 20,000 sq. ft. portion of Parcel 8.01 as a construction staging area. Consideration shall be an initial annual fee of $5,000.00 for the 25-year easement and a fee of $5,000.00 for the one (1) year permit.
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 and permit agreements after they are approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:MTC: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 August 5, 2021
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