TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 8, 2024
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Consent to sublease between Skokie Motor Sales, Inc. and Amazon.com Service, LLC, for approximately 6.6± acres of District real estate located at 3615 Oakton Street in Skokie, Illinois, known as North Shore Channel Parcels 5.01, 5.02, and 5.03. Consideration shall be a document preparation fee of $5,000.00
Body
Dear Sir:
On October 20, 2016, the Board of Commissioners authorized a 10-year lease (“Lease”) to Skokie Motor Sales, Inc. (“Skokie Motor”), on approximately 6.6± acres of District real estate, located at 3615 Oakton Street in Skokie, Illinois, known as North Shore Channel Parcels 5.01, 5.02, and 5.03. The Lease commenced November 8, 2016, and expires November 7, 2026. Skokie Motor uses the site to park cars in conjunction with its nearby car dealership. Skokie Motor’s current annual rent is $423,633.29. The District’s consent is required before Skokie Motor may sublease any portion of the leasehold to another entity.
Skokie Motor has requested the District’s consent to sublease the premises to Amazon.com Services, LLC (“Amazon”). The sublease would be for the remainder of the current lease term. If approved, Amazon intends to use the subleased premises to park delivery vehicles. The technical departments have reviewed this request and have no objections thereto.
The proposed annual sublease rent from Amazon is $392,040.00 for the first year with a 3% increase each year thereafter. Under the Lease, the District is entitled to 50% of the increment or value received by Skokie Motor from any sublease in excess of what Skokie Motor is paying in rent for the site. Because Amazon’s annual sublease fee does not exceed Skokie Motor’s current annual rent for the site, the District’s standard document preparation fee of $5,000.00 will be assessed.
It is requested that the Executive Director recommend to the Board of Commissioners that it consent to a sublease between Skokie Motor Sales, Inc. and Amazon.com Services, LLC on approximately 6.6± acres of District real estate located at 3615 Oakton Street in Skokie, Illinois, known as North Shore Channel Parcels 5.01, 5.02, and 5.03. Consideration shall be a document preparation fee of $5,000.00.
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 Consent to Sublease on behalf of the District after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:NOC
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 August 8, 2024
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