TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 21, 2023
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to issue a two-month permit extension to Michels Pipeline, Inc. to continue to use 3± acres of Main Channel Parcel 35.02 located west of Harlem Avenue and north of the Chicago Sanitary and Ship Canal in Forest View, Illinois for its project to upgrade an existing pipeline for Kinder Morgan. Consideration shall be a one-time permit fee of $14,090.00
Body
Dear Sir:
Michels Pipeline, Inc. (“Michels”), a construction contractor for Kinder Morgan, has a four-month construction staging permit to use 3± acres of Main Channel Parcel 35.02 (“MCP 35.02”) located east of Harlem Avenue and north of the Chicago Sanitary and Ship Canal in Forest View, Illinois. Michels is upgrading an existing Kinder Morgan natural gas pipeline that runs roughly parallel to the Des Plaines River. Portions of this Kinder Morgan pipeline traverse District real estate at various locations, pursuant to previous easements granted by the District. The permit only allows Michels to store equipment, vehicles, and an office trailer on the subject parcel, which is otherwise vacant. Michels has now requested a two-month extension due to construction delays.
The District’s technical departments have no objections to the permit, provided that 24-hour unrestricted access to District structures and facilities is maintained. A one-time permit fee in the amount of $14,090.00 is recommended which represents the pro-rata share of 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 two-month permit extension to Michels Pipeline, Inc. to continue to use 3± acres of Main Channel Parcel 35.02 located west of Harlem Avenue and north of the Chicago Sanitary and Ship Canal in Forest View, Illinois for its project to upgrade an existing pipeline for Kinder Morgan. Consideration shall be a one-time permit fee of $14,090.00.
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 permit agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:MSZ:vp
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 September 21, 2023
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