Category: Real Estate Issues

MWRD Board Forwards Land Deal for Crestwood Casino Project

10/4/2019

Metropolitan Water Reclamation District (MWRD) Board Meeting
October 3, 2019

What did the Board decide?

Approved 99-year lease for 44.4 acre property for Crestwood development project (AgendaI Item #16, 19-0992)

The board unanimously accepted an initial annual rental bid of $820,626 from the City of Crestwood. It is not clear if the lease is contingent on Crestwood receiving a casino license from the State of Illinois. The lease is for 99 years, a departure from the MWRD’s typical lease length of 39 years. There was no discussion of the 35% reduction in annual rent from the minimum $1,262,500 Commissioners authorized for this property at their August 8, 2019 meeting.
During public comment Chelsey Grassfield, policy specialist for Friends of the Chicago River, addressed the board, seeking vigilance in maintaining 60-100 foot required setbacks from the river and advocated use of sustainable landscape design when the MWRD reviews site plans for the 44.4 acre parcel bordering the Cal-Sag canal that the City of Crestwood will lease from the MWRD. The community is seeking a casino license to anchor development on this property. Ms. Grassfield said leaseholder’s focus should be on the health of the river and maintaining established waterway standards.
Later in the meeting Commissioner Cameron Davis inquired when the public would again be able to comment on sustainability and design of the development of the property. Staff said the MWRD would review site plans when they are available, and Commissioners could participate in the process.

2020 Regular Board Meeting Calendar approved (Agenda Item #1 - 19-0998)

Study of Affirmative Action hiring record deferred (Agenda Item #23 - 19-0993)

The MWRD is required to conduct a study of disparity in its Affirmative Action hiring practices. This item would have authorized request for proposals seeking an outside contractor to perform the analysis at an estimated cost of $200,000.
Commissioner Marcelino Garcia asked for this item to be deferred until he had time to discuss his concerns with staff. He said that he wanted this to be a meaningful accounting of the District’s minority hiring practices, and not just the minimum required by law. After supporting comments from Commissioners Frank Avila, Barbara McGowan, and Board President Kari Steele, the Board directed staff to schedule a study session for them on progress in minority hiring practices
Commissioner Garcia then asked to remove this RFP authorization item the Board’s agenda until after the study session.

Allocation for expert witness testimony deleted from agenda (Agenda Item #29 - 19-0952)

This item would have budgeted $200,000 for expert witness testimony in an ongoing lawsuit.
It was removed from the agenda without comment by Executive Director Brian Perkovich

Bio solids bagging contract deferred (Agenda Item #18- 19-0937)

The MWRD gives away biosolids (compost) to the public at its Stickney plant. People can take it away in their own containers, but the District pays to bag some of the material for distribution. This item proposed to seek and pay a contractor $45,000 over a 3-year period to pick up composted biosolids from the Harlem Ave. composting facility, transport them to an off-site location, bag it, and return the filled bags to the Stickney Plant.
In response to Commissioners’ questions, staff said the plan would produce 5,000 bags of compost per year at a cost of $15,000 per year. Commissioner Debra Shore asked for cost-comparisons between buying the bagging equipment and having MWRD employees do the bagging and outsourcing. Commissioner Barbara McGowan questioned the process of transporting the compost back and forth.
Commissioner Marcelino Garcia questioned the value of the project, saying that while it is very nice that the District gives away composted biosolids, the MWRD lacks a plan to monetize and distribute it products at scale. “We need to industrialize and sell the products we create,” he said. “We need a staff person who is dedicated to this idea, and who can move us forward.” The Commissioners agreed to defer this item until it could be more fully explored.

Other discussions of interest:

Commissioner Mariyana T. Spyropoulos questioned why certain contracts were rejected and why the District received so few responses to some requests for proposals. She asked if specifications for services were being too narrowly written. She suggested a look at procedures for contracting.
Commissioner Marcelino Garcia questioned if minority guidelines were being observed when the District added scope or funding to existing contracts. There were several items on the agenda that did add funds to existing contracts, and he highlighted them. Staff said that they would be attentive to this issue.

Observer - Laurie Morse Meeting Length - 2.5 hours

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Lack Of Quorum Requires MWRD Board To Reconvene On August 9

8/27/2019

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Metropolitan Water Reclamation District (MWRD) Board Meeting
August 8, 2019

Board Actions:

Agenda Item 19-0785 #70

Lou Presta, Mayor Village of Crestwood and Terry O'Brien, the O'Brien Network, addressed the Board to consider the lease on 44.61 acres of District real estate in Crestwood, specifically to consider the lease terms at 6% for the Crestwood Casino Project.
Later in the meeting, a motion was made by Debra Shore, seconded by Marcelino Garcia, to Amend Agenda Item #70 to put parcel out for bid at 8%. The motion to amend failed.
MOTION was finally passed to amend File No. 19-0785 to grant Authority to advertise Contract 19-365-11 for public tender of bids for a 99-year lease on 44.61 acres of District real estate located south of the Cal-Sag Channel between Cicero Avenue and Kostner Avenue in Crestwood, Illinois; Cal-Sag Channel Parcels 12.05, 12.07 and 12.08. The minimum initial annual rental bid shall be established at $1,262,500.

Agenda Item 19-0720: #22

Authorization to amend Board Order of June 6, 2019, for Authority to advertise Contract 16-708-21, Repair and Rehabilitation of the Gloria Alitto Majewski Reservoir in Des Plaines, Illinois, estimated cost $1,200,000.

Agenda Item 19-0745 #35

Authority to advertise Contract 18-277-3M Digester Sludge Heating System Upgrades and Boiler Removal, Calumet Water Reclamation Plant, estimated cost between $27,075,000 and $32,775,000. The contract is expected to be awarded in December 2019.
The boilers for the Digester Complex are between 20 to over 30 years old. Due to their condition, the increased risk of failure necessitates their replacement to ensure an appropriate level of service for the digestion process and space heating. It is felt that it is economically justified to replace or rehabilitate them due to the increased level of maintenance cost.

Observer - Nancy Mitzen Meeting Length: 2½ hour

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Water District Board Deals with Lease Issues at Board Meeting

7/5/2019

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Metropolitan Water Reclamation District (MWRD) Board Meeting
June 20, 2019

Board Actions:

An amendment to the lease agreement dated June 11, 2013 between the District and the City of Blue Island on 137.64 acres of District real estate located north and south of the Cal-Sag Channel between Kedzie Avenue and Fay’s point in Blue Island, Illinois was approved. (Agenda Item 19-0537)

The main provisions of the amendment were to expand Blue Island’s leasehold to include the District’s SEPA Station 3 site and Cal-Sag Channel Parcel 15.09 and to allow Blue Island to host various community events and maintain community farms and a parking lot.
This amendment had been previously pulled from the June 6, 2019 agenda.
There was much discussion on this amendment because Blue Island had entered into an agreement with BIOS Farm, an organic farm serving the community and benefiting 100’s of residents. However, due to the fact that BIOS Farm is an commercial enterprise and sells its production to the public, the District's legal department held that this is an unauthorized agreement and use under the lease. The agreement between Blue Island and BIOS Farm did not go through the District bidding process as well. While BIOS Farm serves the community it is not considered a ‘community farm’, which is typically individually operated for the operators’ own personal consumption.
Public comment from BIOS Farm, Village of Blue Island and District discussion revealed that there was general support for the mission and activities of BIOS Farm and an agreement with Blue Island, but that a study session should be called for to address the legality of their agreement and that provisions should be made to allow for BIOS Farms operations to wind down to prevent waste, as the growing season is in full swing.

OTHER DISCUSSION:
Two agenda items relating to 91.9 acres of District real estate located in the City of Evanston were discussed.
DEFERRED:
Item 19-0600: Authority to amend lease agreement dated October 14, 1966, as amended, between the District and City of Evanston on approximately 91.9 acres of District real estate located in Evanston along the north Shore Channel to (1) allow Evanston to hold festivals and outdoor concerts and (2) allow the sale and consumption of alcohol. Consideration shall be a nominal fee of $10.00.
Commissioner McGowan would like more information and will submit questions in writing.
APPROVED:
Item 19-0610: Authority to resolve the Notices of Default issued to the City of Evanston arising out of violations of the lease agreement dated October 14, 1966, as amended between the District and the City of Evanston on Approximately 91.9 acres of District real estate located in Evanston along the North Shore Channel. Consideration shall be $77,450.25

Item 19-0614: Authority to issue a 1-year permit to Northwestern University to allow parking and tailgating activities during home football games on North Shore Channel Parcels 2.05, 2.06, 2.07, and 2.08, in Evanston Illinois. Consideration shall be an annual fee of $80,000.00.

Observer - Nancy Mitzen Meeting Length: 2.5 hours

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Environment Loses But Veterans Gain at Water District Board Meeting

11/20/2018

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Metropolitan Water Reclamation District (MWRD) Board Meeting - November 15, 2018

What the Board Decided:

Many of the same November 1st board meeting speakers against the MWRD authorizing an easement to the Cook County Roads and Transportation Department for the environmentally vulnerable Canal Shores land in Wilmette and Evanston, spoke again at this meeting. However, the board voted 5-4 to grant the easement. Commissioners Voting Yes: Dunkin, Durkin, McGowan, Steele, and Walsh. Commissioners Voting No: Avila, Morita, Shore, and Spyropoulos. Messrs. Dunkin, Durkin, and Walsh are leaving the board as a result of the November election.

Several board members publicly recognized the overwhelming opposition to granting the easement, but decided to follow the recommendations of the MWRD legal department and do so. It is expected that the organizations, including the League of Women Voters of Evanston and Wilmette, and individuals who asked for a NO vote on the resolution [Agenda Item #18-1159] will now turn their attention and opposition to the Cook County Board of Commissioners where some members of the MWRD board believe it should be decided.
One concern raised was the proposed five foot elevation of the road increasing greater runoff for those wetlands connected and the houses now bordering the canal along with the loss of woodland and wildlife.

MWRD Commissioners also approved Resolution #18-1147 adopting a policy to provide contractor opportunities for Veteran owned and operated small businesses. The board would require the Veterans to be honorably discharged, released due to hardship or disability and be a member of the Armed Forces for at least six months to qualify. The goal is that at least 3% of MWRD contracts will be awarded to Veteran run businesses. Small business, women’s, and minority enterprises will still receive the current mandates and will not be impacted by the additional 3%.

Observer - Patricia Lind Meeting Length: 3 hours

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Easement Controversy Over Road Construction on North Shore Channel Property Dominates Water District Board Meeting

11/4/2018

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Metropolitan Water Reclamation District (MWRD) Board Meeting - November 1, 2018
Commissioners present: all except Josina Morita.

Public Comment time at this meeting concerned the following.
Summary of Issue:
The Cook County Dept. of Transportation made a request for an easement for a road to be built across the tenth hole of Canal Shores Golf Course in Wilmette. The Keefe Trust is the actual party benefiting from said easement. The Trust purchased the property several decades ago with the knowledge that there was no road to the parcel. Since the Wilmette Park District leases the land which contains the golf course, the Keefe Trust applied for permission to build a road across the tenth hole of the course, running alongside existing houses at Golf Terrace. Wilmette Park District denied application stating this was a use of public land for private profit.
It is unclear why Cook County and its transportation department became involved and made this request to the MWRD Board when the beneficiary of the easement grant would be the Keefe Trust.

Public comment:
Thirty-three citizens against the easement testified over a period of three hours, making the following points:

Ecological concerns-construction would destroy wetlands & wildlife habitats
Canal Shores, a public course, has been used by residents of Wilmette and Evanston for 100 years. It is a great recreational resource for the community.
Protection of green space is a public good now more than ever.
Course is used for bird watching, cross country skiing, walking, not just golf.
This is a good governance issue. This is public land preserved for the use of the public. Taking this land for the benefit of one private developer is not defensible.
Taxpayers will end up bearing the cost of the road and its maintenance.
Fear of litigation from Keefe Trust is no reason to grant the easement.
This will not increase tax revenues because the road will cause existing properties to lose value.
Wilmette Park District counsel stated that they will not stand for a decision that violates the terms of the lease.
Building a road will cause more flooding of basements in the area.
Golf Terrace homeowners will be harmed by this decision. They will have a road in front and behind their homes, resulting in safety issues for children and a loss of property values.
The connection between the Keefe Trust and the law firm of Senate President Cullerton was raised. Is political connection being used to exert pressure on commissioners?

Comments/questions from Commissioners:

There was confusion over who would actually pay for the road and its maintenance. John Yonan from the CC Highway Dept. was not able to give a definite answer. He suggested there might be a public/private partnership.
Commissioner Walsh warned of litigation if the easement was not granted. Also, he seemed to feel it was somehow wrong to deny a request from another governmental body, in this case Cook County Transportation Dept.
Commissioner Shore asked for an estimate of the cost of building the road. Yonan said there were too many variables and he could not answer at this time. Ms. Shore was confused as to why Keefe was involved if it is a Cook County request. She also suggested it was hard to see how building a road furthers the mission of the MWRD - that is, to protect water and to manage flooding.
Commissioner Dunkin was visibly upset about spending three hours of board time on testimony about a sliver of a golf course in a wealthy area of the county. He said areas like Englewood receive little attention, though there is great need, while elite areas of the North Shore get an inordinate amount of attention. He called for a vote up or down and then movement to matters of more importance.

Commissioner Avila moved to defer this issue, and this ended the morning session.

Observer - Georgia Gebhardt Meeting length: three hours (10:45 a.m.-1:45 p.m.)

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Water District Puts Bio-gas Development on Hold Pending Review of Energy Security Goals

10/19/2018

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Metropolitan Water Reclamation District (MWRD) Board Meeting - October 18, 2018

What did the Board decide?
Since 2015, the MWRD has worked with potential partners to increase bio-gas production and use at Stickney and Calumet plants. Today the Board, at staff’s request, paused the development process, voting not to accept responses to the District’s 2016 and 2017 requests for proposals.

Three public speakers, including James D. Harrington, legal counsel for Green SEED Energy, addressed disappointment that the District would summarily abandon plans for these projects, which promised environmental and job benefits to the Calumet Community. He said SEED had met for years with staff and was blindsided when no proposal was accepted.
Commissioner Dunkin asked staff for clarification after removing the items (#11 and 12) from the consent agenda.
Commissioner Shore questioned why the District was reversing a project compatible with its energy-neutrality goal.
Acting Executive Director John Murray said the District did not wish to pursue individual projects without an over-arching policy in place. He said staff would work with the Board to formulate policy in the areas of resource recovery, energy security, environment, while considering the District’s own needs for the gas. He’d like the Board to formulate a vision on these topics, starting with a study session in the first quarter of 2019 “and then we can start again,” he said.

What else did the Board discuss?

There was a resolution and speaker recognizing Breast Cancer Awareness month, introduced by Commissioner McGowen.

Items to watch for in the Future:

Item #47, a request from the Cook County Department of Transportation for an easement to construct a public road across lands leased by the Wilmette Park District, and used as the 10th hole of the Evanston-Wilmette Community Golf Course (Canal Shores), was pulled from the consent agenda by Executive Director Murray. The road is meant to access a land-locked real estate parcel owned by the Keefe Family Trust. There were numerous comments urging the board to oppose the easement (a vote is expected as soon as the November 1, 2018 meeting). Representatives of Go Green Wilmette; Friends of the Chicago River; Brian Abbott, commissioner of the Wilmette Park District; Natural Habitat Evanston; and from the Golf Course all spoke against the road.

Other Comments or Observations:

MWRD investments for various district operating funds totaled $850 million on September 30. Average annual yield on these investments in September was 1.165%.

Observer: Laurie Morse Meeting Length: started at 10:30 and went into Executive Session at noon.

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MWRD Board Forwards Land Deal for Crestwood Casino Project

Lack Of Quorum Requires MWRD Board To Reconvene On August 9

Water District Board Deals with Lease Issues at Board Meeting

Environment Loses But Veterans Gain at Water District Board Meeting

Easement Controversy Over Road Construction on North Shore Channel Property Dominates Water District Board Meeting

Water District Puts Bio-gas Development on Hold Pending Review of Energy Security Goals

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