TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 15, 2025
COMMITTEE ON REAL ESTATE
Mr. John P. Murray, Acting Executive Director
Title
Authority to issue a temporary, non-exclusive license to Bally’s Chicago Operating Company, LLC to perform preliminary investigation activity and construction near the District’s sewer infrastructure located at 777 W. Chicago Avenue in Chicago, Illinois
Body
Dear Sir:
The District owns and maintains an intercepting sewer and appurtenances thereto, known as the West-Side-8 interceptor, a portion of which crosses the property at 777 W. Chicago Avenue in Chicago, Illinois. The interceptor at this location is located within an easement area that was first granted to the District in 1932. The owner of the underlying property, GLP Capital, L.P., has leased the parcel to Bally’s Chicago Operating Company, LLC (“Bally’s”) for the development of a new casino.
Bally’s is in the process of applying to the District’s Engineering Department for the necessary Facility Connection Authorizations (“FCA”) under the Watershed Management Ordinance (“WMO”). As part of the application process, the District has been coordinating pre-construction plans to locate and protect all District infrastructure in the area.
While the FCA applications are being reviewed, Bally’s will be proceeding with other preliminary development work at this site, a portion of which will be located near the District’s easement and sewer infrastructure. To ensure that the District’s infrastructure is protected, the District and the developer have negotiated a license agreement that sets forth certain requirements for performing work near the intercepting sewer. The license agreement sets forth the District’s right to review and approve all construction plans, pre- and post-construction televising of the sewers, setbacks for all subsurface facilities, indemnification for any claims related to the work, and insurance protection for any damage caused to District infrastructure. This license provides clearer protections that benefit both parties and will improve construction coordination as the project progresses.
It is requested that the Acting Executive Director recommend to the Board of Commissioners that it authorize the District to issue a temporary, non-exclusive license to Bally’s Chicago Operating Company, LLC to perform preliminary investigation activity and construction near the District’s sewer infrastructure located at 777 W. Chicago Avenue in Chicago, Illinois.
It is further requested that the Acting Executive Director recommend to the Board of Commissioners that it authorize and direct the Acting Executive Director and Director of Engineering to execute said license agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:NOC:vp
Recommended, John P. Murray, Acting Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for May 15, 2025
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