TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 18, 2023
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authorization to accept initial annual rental bid for Contract 23-363-11 Proposal to Lease 2.5 acres of District real estate located at 15680 Canal Bank Road in Lemont, Illinois, and known as Main Channel Parcel 23.10, for a three (3) year term from DCC Propane, LLC, in the amount of $70,100.00
Body
Dear Sir:
At its meeting of March 16, 2023, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise Contract 23-363-11 Proposal to Lease 2.5 acres of District real estate located at 15680 Canal Bank Road in Lemont, Illinois, and known as Main Channel Parcel 23.10, for a 3-year term. The minimum acceptable annual rental bid was established at $60,000.00 (10% of the appraised fair market value).
At the April 18, 2023 bid opening, DCC Propane, LLC (“DCC Propane”) was the sole bidder with a minimum initial annual rental bid of $70,100.00 (11.6834% of the appraised fair market value). DCC Propane currently leases the site for the operation of a retail propane distribution business, including bulk storage. DCC Propane intends to continue the same use.
The Finance Department has reviewed DCC Propane’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 23-363-11 Proposal to Lease 2.5 acres of District real estate located at 15680 Canal Bank Road in Lemont, Illinois, and known as Main Channel Parcel 23.10 for a three (3) year term from DCC Propane, LLC, in the amount of $70,100.00.
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:MSZ:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Marcelino Garcia, 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 May 18, 2023
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