TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 14, 2022
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to issue a one and a half (1.5) month permit extension to United Parcel Service, Inc. to continue to store and park trucks and trailers on 8 acres of District real estate located at the Cal-Sag Channel and Ridgeland Avenue in Alsip, Illinois and known as the Ridgeland Avenue Drying Facilities; Cal-Sag Channel Parcel 10.04 (portion). Consideration shall be $48,000.00
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Dear Sir:
On September 14, 2017, the Board of Commissioners (“Board”) authorized a permit to United Parcel Service, Inc. (“UPS”) for seasonal use of District Cal-Sag Channel Parcel 10.04 located at the Cal-Sag Channel and Ridgeland Avenue in Alsip, Illinois and known as the Ridgeland Avenue Drying Facilities (“Ridgeland Facilities”) for storing and parking trucks and trailers. The permit allows use of the site by UPS for 5 months each year. This 5-month period commences each year on September 1st and expires each year on January 31st. As extended and amended, UPS’s permit comprises 24.5 acres and expires January 31, 2023.
UPS has submitted a request to amend the permit by allowing it to enter the site one and a half (1.5) months prior to September 1, 2022, due to an increased need for parking. Accordingly, UPS is requesting to use 8 acres of 24.5-acre permit area prior to September 1, 2022; the current permit term’s start date. The District’s technical departments have no objections to allowing UPS to enter the site one and a half (1.5) months early.
While the site is not immediately needed for District use, a permit is recommended in this instance because the District may need the site for corporate use sometime over the next few years, such as truck driver testing, biosolids management, and related activities. A permit allows the District to terminate the agreement with UPS, if necessary, to accommodate the District’s use of the site. UPS is aware of this provision in the permit agreement.
The recommended permit fee is $48,000.00, which is the same per-acre fee as the existing permit, and represents the pro-rata share of over 10% of the fair market value of the land based upon recent appraisals of nearby comparable sites.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of a one and a half (1.5) month permit extension to United Parcel Service, Inc. to continue to store and park trucks and trailers on 8 acres of District real estate located at the Cal-Sag Channel and Ridgeland Avenue in Alsip, Illinois and known as the Ridgeland Avenue Drying Facilities; Cal-Sag Channel Parcel 10.04 (portion). Consideration shall be $48,000.00.
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 permit extension agreement on behalf of the District after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:MTC:BJD
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 July 14, 2022
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