TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 10, 2023
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to advertise Contract 23-365-11 for public tender of bids for a 39-year lease on 25.86± acres of District real estate located at 6800 Canal Bank Road in Forest View, Illinois, known as Main Channel Parcel 37.05. The minimum initial annual rental bid shall be established at $660,000.00
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Dear Sir:
The Board of Commissioners authorized the commencement of statutory procedures to lease District real estate located at 6800 Canal Bank Road in Forest View, Illinois, known as Main Channel Parcel 37.05, on June 20, 2019. The parcel is a vacant industrial site located between the Chicago Sanitary and Ship Canal and I-55, starting approximately 60 feet from the waterway on the southeast side of Canal Bank Road.
The lead applicant, 7EZ Consulting, Inc., intends to use the site for truck parking and storage. Pursuant to the statute, the lead applicant submitted two appraisals and the Law Department obtained a third appraisal, as follows:
Appraiser Value
Appraisal Associates $6,600,000.00
William Enright, MAI
(District’s Appraiser)
The Gorman Group, Ltd. $5,500,000.00
Robert C. Gorman, MAI
Standard Valuation Services $4,780,000.00
Adam Francis Smith, MAI
It is recommended that the subject real estate’s fair market value be based upon the highest of the three appraisals and established at $6,600,000.00 and that the minimum initial annual rental bid be established at 10% of the property’s fair market value, which is $660,000.00.
It is further requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the following orders:
1. The real estate, which comprises 25.86± acres located at 6800 Canal Bank Road in Forest View, Illinois, known as Main Channel Parcel 37.05, is not currently needed for the District’s corporate purposes and is available for lease.
2. The fair market value of the subject real estate is established at $6,600,000.00, and the minimum initial annual rent be established at 10% thereof, which is $660,000.00.
3. The Director of Procurement and Materials Management is authorized to advertise the subject real estate as available for lease for a 39-year term at the minimum initial annual rental bid of $660,000.00 and report the results of the bidding to the Board of Commissioners for further action.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the Director of Procurement and Materials Management to advertise Contract 23-365-11 for public tender of bids for a 39-year lease on 25.86± acres of District real estate located at 6800 Canal Bank Road in Forest View, Illinois, known as Main Channel Parcel 37.05. The minimum initial annual rental bid shall be established at $660,000.00.
Requested, Susan T. Morakalis, General Counsel, STM: BJD
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 August 10, 2023
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