TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 21, 2023
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
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Authority to enter into a 50-year lease with the City of Palos Heights for the continued use of 82± acres of District real estate located along the south bank of the Cal-Sag Channel in Palos Heights, Illinois, for public recreational purposes, including the operation and maintenance of the Lake Katherine Nature Center and Botanic Gardens, and the sale and consumption of alcohol. Consideration shall be a one-time fee of $10.00, plus 25% of annual net revenues derived from the premises
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Dear Sir:
The City of Palos Heights (“Palos Heights”) leases approximately 82 acres of District real estate located along the south bank of the Cal-Sag Channel in Palos Heights, Illinois, under two lease agreements. The first lease on Cal-Sag Channel (“CSC”) Parcels 8.08 and 9.04 commenced on January 1, 1988, and expires December 30, 2038. This leasehold contains the Lake Katherine Nature Center and Botanic Gardens, as well as a segment of the Cal-Sag Trail. This lease currently allows for the sale and consumption of alcohol. The second lease on CSC Parcel 8.04 commenced July 15, 2004, and expires July 14, 2038. This leasehold contains another segment of the Cal-Sag Trail. The annual rent for the two leases is a nominal fee, plus 25% of net annual revenues derived from the use of the sites.
Palos Heights has requested a new 50-year lease for the continued use of the subject properties for the same public recreational purposes and the continued sale and consumption of alcohol. The new lease will combine the two referenced leases into one lease agreement. Palos Heights is requesting a new 50-year lease because the longer term is necessary to obtain grant funding for its green infrastructure and other improvements. The sale of alcohol is authorized by Illinois law (235 ILCS 5/6-15), which permits the sale and consumption of alcohol on District-owned real estate that is leased for a term of at least 20 years. It is recommended that the annual rent be a one-time fee of $10.00, plus 25% of annual net revenues derived from the premises.
The District’s technical departments have reviewed the subject request and have no objections thereto. Under 70 ILCS 2605/8c(11), said lease is terminable upon the service of one-year’s notice if the property becomes essential to the District’s corporate needs. Additionally, the Engineering Department has approved Palos Heights’ green infrastructure plan for the new lease.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the District to enter into a 50-year lease with the City of Palos Heights for the continued use of 82± acres of District real estate located along the south bank of the Cal-Sag Channel in Palos Heights, Illinois, for public recreational purposes, including the operation and maintenance of the Lake Katherine Nature Center and Botanic Gardens, and the sale and consumption of alcohol. Consideration shall be a one-time fee of $10.00, plus 25% of annual net revenues derived from the premises.
It is further 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 said lease agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:MSZ
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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