TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 6, 2025
COMMITTEE ON REAL ESTATE
Mr. Brian A. Perkovich, Executive Director
Title
Authority to settle the eminent domain lawsuit entitled The Metropolitan Water Reclamation District of Greater Chicago v. Prime33 Development LLC, et al., Case No. 20L050009 in the Circuit Court of Cook County, Illinois, for final just compensation in the amount of $197,500.00, Account 501-50000-667330, Stormwater Management Fund
Body
Dear Sir:
On February 4, 2021, the Board of Commissioners (“Board”) authorized preliminary just compensation in the amount of $90,000.00 to acquire permanent and temporary easements on portions of the real estate commonly known as 3815 West Lake Street in Stone Park, Illinois, in the eminent domain lawsuit entitled The Metropolitan Water Reclamation District of Greater Chicago v. Prime33 Development LLC, et al., Case No. 20L050009 in the Circuit Court of Cook County, Illinois. The property is improved with a one-story gentlemen’s club. The easement areas are required for the construction of the Addison Creek Channel Improvements Project (“Project”). The preliminary just compensation award was deposited with the Cook County Treasurer and the court issued an order vesting title to the easements for the Project.
After the court entered the preliminary just compensation order, the District and the owner continued to negotiate regarding the final just compensation amount to settle the pending lawsuit. The parties also continued through the discovery process, including depositions of appraisal and engineering witnesses. When the parties were unable to reach an agreement at a preliminary settlement conference, the case was scheduled for trial before Judge Maura Slattery Boyle on January 29, 2025. As a result of further settlement discussions with the judge and between the parties, the parties reached a proposed agreement to settle this matter for final just compensation of $197,500.00, subject to the Board’s approval.
The District has already deposited $90,000.00 with the Cook County Treasurer, so the difference of $107,500.00 will be deposited upon Board approval. This settlement avoids the risk and uncertainty of a jury trial, where the final compensation award could be significantly higher than the District’s appraised value. The District and the owner will continue to coordinate regarding the ongoing construction work and monitoring plan.
It is the opinion of the General Counsel and Special Counsel, Neal & Leroy, LLC, that the amount of $197,500.00 is within the range of value for the easements based on the appraisals obtained by the District (Patricia McGarr, MAI) and by the property owner (Gary DeClark, MAI). In addition, final settlement of this matter will save the District substantial fees and costs that would otherwise be required to proceed to a jury trial, including attorney’s fees and expert witness fees.
Accordingly, it is requested that the Executive Director recommend to the Board of Commissioners that it adopt the following orders:
1. That the District settle the eminent domain lawsuit entitled The Metropolitan Water Reclamation District of Greater Chicago v. Prime33 Development LLC, et al., Case No. 20L050009 in the Circuit Court of Cook County, Illinois, in the amount of $197,500.00.
2. That the General Counsel be authorized and directed to execute and deliver the Settlement Agreement and Final Judgment Order, and take such other actions as may be necessary to effectuate said settlement.
Requested, Susan T. Morakalis, General Counsel and Catherine A. O’Connor, Director of Engineering; STM:CAO:BJD: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 February 6, 2025
Attachment