TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 4, 2025
COMMITTEE ON REAL ESTATE
Mr. John P. Murray, Executive Director
Title
Consent to a partial assignment of lease from the Village of Crestwood, to the Village of Crestwood and 4Crestwood LLC as co-tenants, with respect to 1.01 acres of the Village’s 7.61-acre leasehold located south of the Cal-Sag Channel and west of Cicero Avenue in Crestwood, Illinois; Cal-Sag Channel Parcel 11.04 (eastern portion), and to allow for the sale and consumption of alcohol and video gaming on the 1.01 acres. Consideration shall be an initial annual fee of $4,572.00
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Dear Sir:
The Village of Crestwood (“Village”) leases 7.61 acres of District real estate located south of the Cal-Sag Channel and west of Cicero Avenue in Crestwood, Illinois, known as Cal-Sag Channel Parcel 11.04 (eastern portion) (“Lease”). The Lease commenced in 2017 and expires in 2077, and was procured through the statutory leasing process. The Village’s current annual rent is $202,350.59. The Lease allows for mixed use retail development. Any sublease or partial assignment of lease requires the District’s written consent.
Accordingly, the Board has previously consented to the assignment of a 2.60-acre portion to the Village and Aldi Inc. as co-tenants, and to the assignment of a 2.04-acre portion to the Village and Chick-fil-A as co-tenants. Aldi Inc. and Chick-fil-A continue to operate at these locations.
The Village is now requesting the District’s consent to assign a 1.01-acre portion of the remaining 2.97 undeveloped acres to the Village and 4Crestwood LLC as co-tenants. 4Crestwood LLC plans to construct and operate a liquor store and gaming café on this portion of the leasehold. Accordingly, the Village and 4Crestwood LLC have also requested that the Lease be amended to allow for the sale and consumption of alcohol and video gaming inside the store. 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, if approved by the Board. Video gaming terminals are authorized by Illinois law pursuant to 230 ILCS 40/1, which regulates the licensing and operation of such terminals. The Village and 4Crestwood LLC will be responsible for ensuring compliance with all applicable state and local laws.
The Village currently pays $26,855.99 in annual base rent for this 1.01-acre portion of the leasehold. Under the lease assignment, 4Crestwood LLC will pay the Village annual rent of $36,000.00. As a condition of the District’s consent, the Village has agreed to pay 50% of the rental income that it receives from 4Crestwood LLC above the base rent, which is an initial annual fee of $4,572.00.
The District’s technical departments have reviewed this request and have no objections thereto.
It is requested that the Executive Director recommend to the Board of Commissioners that it consent to a partial assignment of lease from the Village of Crestwood, to the Village of Crestwood and 4Crestwood LLC as co-tenants, with respect to 1.01 acres of the Village’s 7.61-acre leasehold located south of the Cal-Sag Channel and west of Cicero Avenue in Crestwood, Illinois; Cal-Sag Channel Parcel 11.04 (eastern portion), and to allow for the sale and consumption of alcohol and video gaming on the 1.01 acres. Consideration shall be an initial annual fee of $4,572.00.
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 said Consent to Partial Assignment of Lease Agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:MSZ:vp
Recommended, John P. Murray, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 4, 2025
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