TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 15, 2023
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authorization to accept initial annual rental bid for Contract 23-362-11 Proposal to Lease 22.9± acres of District real estate located at 15660 Canal Bank Road in Lemont, Illinois, known as Main Channel Parcel 23.03, for a fourteen (14) year term from A. Block Marketing, Inc. in the amount of $602,000.00
Body
Dear Sir:
At its meeting of February 16, 2023, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise Contract 23-362-11 Proposal to Lease 22.9± acres of District real estate located at 15660 Canal Bank Road in Lemont, Illinois, known as Main Channel Parcel 23.03, for a fourteen (14) year term. The minimum acceptable annual rental bid was established at $500,000.00 (10% of the appraised fair market value).
At the April 11, 2023 bid opening, the sole bid was received from A. Block Marketing, Inc. for a minimum initial annual rental bid of $602,000.00 (12.04% of the appraised fair market value). A. Block Marketing, Inc. has occupied this site since 2005 for barging, sale, storage and distribution of landscaping materials and mulching activities. The current lease commenced November 1, 2013, and expires October 31, 2023. A. Block Marketing, Inc. proposes to continue using the site for the same purposes. The Village of Lemont has no objections to the proposed lease of the property.
The Finance Department has reviewed A. Block Marketing, Inc.’s financial and company background information and has reported that it demonstrates the ability to meet its financial obligations under the 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 23-362-11 Proposal to Lease 22.9± acres of District real estate located at 15660 Canal Bank Road in Lemont, Illinois, known as Main Channel Parcel 23.03, for a fourteen (14) year term from A. Block Marketing, Inc. in the amount of $602,000.00.
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 lease agreement after it has been approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:JAW
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 June 15, 2023
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