TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 5, 2025
COMMITTEE ON REAL ESTATE
Mr. John P. Murray, Acting Executive Director
Title
Ratify the action of the Acting Executive Director of May 16, 2025, issuing a 90-day permit to Petroleum Fuel and Terminal Company to stage and launch boats on 3.47± acres of District real estate located at 7800 Canal Bank Road in Summit, Illinois, known as Main Channel Parcel 34.03, and authority to amend the permit to allow vehicle parking and equipment storage on 4.57± acres of adjacent District real estate located in Summit, Illinois known as Main Channel Parcel 35.06. Consideration shall be a permit fee of $45,000.00
Body
Dear Sir:
On May 16, 2025, Petroleum Fuel and Terminal Company (“PF&T”), a subsidiary of Apex Oil Company, Inc. (“Apex”), made an emergency request for a 90-day permit to use 3.47± acres of District real estate located at 7800 Canal Bank Road in Summit, Illinois, known as Main Channel (“MC”) Parcel 34.03, to stage and carry out an emergency response, including evaluation and remediation, related to a spill of asphalt into the Chicago Sanitary and Ship Canal. MC Parcel 34.03 is vacant and contains a boat dock.
The Acting Executive Director issued the permit on May 16, 2025. Prior to issuing the permit, the Board of Commissioners had been polled and it was amenable to its issuance.
To provide background, PF&T leases approximately 23.95 acres of District real estate in Forest View, Illinois, known as Main Channel Parcel 37.04. PF&T has leased this site from the District since January 1, 1993, to operate and maintain an oil terminal and storage facility. PF&T’s current lease commenced January 1, 2018, and expires December 31, 2037. The current annual rent under the lease is $743,713.51.
On or about February 2, 2025, a pipe failure at PF&T’s Forest View facility on MC Parcel 37.04 caused liquid asphalt to spill into the Chicago Sanitary & Ship Canal (“CSSC”). The USEPA and the IEPA were notified of this incident and were onsite when the initial cleanup efforts commenced. On May 12, 2025, a tar-like substance was discovered in the CSSC. Assessments by USEPA traced the source of the product to the PF&T Forest View facility. The warmer temperatures contributed to the movement of this asphalt material that was thought to be remediated. PF&T is undertaking cleanup actions in coordination with the USEPA and IEPA. These actions include the deployment of containment booms and removing asphalt material from impacted areas.
Since the issuance of this permit, PF&T requested to expand the permit premises to include the 4.57±-acre adjacent site known as MC Parcel 35.06 for additional vehicle parking and equipment storage. MC Parcel 35.06 is currently vacant.
An initial permit fee of $15,000.00 was assessed for use of MC Parcel 34.03 in this instance because of the emergency nature of the request. It is recommended that an additional permit fee of $30,000.00 be assessed to account for the expansion of the permit premises to include the 4.57± acres of MC Parcel 35.06, which represents the pro-rata share of 10% of the fair market value of nearby comparable sites. The total permit fee to be assessed would be $45,000.00.
Accordingly, it is requested that the Board of Commissioners grant authority to: (1) ratify the action of the Acting Executive Director of May 16, 2025, issuing a 90-day permit to Petroleum Fuel and Terminal Company to stage and launch boats on 3.47± acres of District real estate located at 7800 Canal Bank Road in Summit, Illinois, known as Main Channel Parcel 34.03, and (2) amend the permit to allow vehicle parking and equipment storage on 4.57± acres of adjacent District real estate located in Summit, Illinois known as Main Channel Parcel 35.06. Consideration shall be a permit fee of $45,000.00.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:JAW: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 June 5, 2025
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