State of Illinois
91st General Assembly
Legislation

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91_SB0099eng

 
SB99 Engrossed                                 LRB9101165MWgc

 1        AN  ACT  to  amend  the  Metropolitan  Water  Reclamation
 2    District Act by changing Section 8c.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.   The Metropolitan Water Reclamation District
 6    Act is amended by changing Section 8c as follows:

 7        (70 ILCS 2605/8c) (from Ch. 42, par. 327c)
 8        Sec. 8c.  Every  lease  of  property  no  longer  or  not
 9    immediately  required  for  corporate  purposes of a sanitary
10    district, from such district to others  for  a  term  not  to
11    exceed  99  years,  in accordance with Section 8 of this Act,
12    shall be negotiated, created and executed  in  the  following
13    manner:
14        (1)  Notice  of  such proposed leasing shall be published
15    for 3 consecutive weeks in a newspaper of general circulation
16    published in such sanitary district, if any, and otherwise in
17    the county containing such district;
18        (2)  Prior to receipt of bids for the  lease  under  this
19    Section,  the  fair  market  value  of  every  parcel of real
20    property to be leased must be determined  by  2  professional
21    appraisers  who are members of the American Institute of Real
22    Estate  Appraisers  or  a  similar,  equivalently  recognized
23    professional  organization.  The  sanitary  district   acting
24    through  the  general superintendent may select and engage an
25    additional appraiser for such determination  of  fair  market
26    value.  Every  appraisal  report  must  contain  an affidavit
27    certifying  the  absence  of  any  collusion  involving   the
28    appraiser and relating to the lease of such property;
29        (3)  Such   lease   must   be   awarded  to  the  highest
30    responsible  bidder  (including  established  commercial   or
31    industrial  concerns and financially responsible individuals)
 
SB99 Engrossed              -2-                LRB9101165MWgc
 1    upon free and open competitive bids, except that no lease may
 2    be awarded unless the bid of such highest responsible  bidder
 3    provides  for  an  annual  rental  payment  to  the  sanitary
 4    district  of  at least 6% of the fair market value determined
 5    under this Section;
 6        (4)  Prior to  acceptance  of  the  bid  of  the  highest
 7    responsible  bidder  and  before  execution  of the lease the
 8    bidder shall submit to the board of commissioners and general
 9    superintendent, for incorporation in the  lease,  a  detailed
10    plan  and  description of improvements to be constructed upon
11    the leased property, the time within which  the  improvements
12    will  be  completed,  and  the  intended  uses  of the leased
13    property.  If there is more than  one  responsible  bid,  the
14    board  of  commissioners may authorize and direct the general
15    superintendent to solicit  from  the  2  highest  responsible
16    bidders  written  amendments  to their prior bids, increasing
17    their rental bid proposal by at least 5% in excess  of  their
18    prior  written bid, or otherwise amending the financial terms
19    of their bid so as to maximize the financial  return  to  the
20    sanitary  district  during  the  term  of the proposed lease.
21    Upon the general superintendent's  tentative  agreement  with
22    one  or  more  amended bids, the bids may be submitted to the
23    board of commissioners with the recommendation of the general
24    superintendent for acceptance of one  or  rejection  of  all.
25    The amendments may not result in a diminution of the terms of
26    the transaction and must result in an agreement that is equal
27    to  or  greater  in  value  than  the highest responsible bid
28    initially received;
29        (5)  The execution of such lease must be  contemporaneous
30    to  the  execution by the lessee, each member of the board of
31    commissioners and the general superintendent of an  affidavit
32    certifying the absence of any collusion involving the lessee,
33    the  members  and  the general superintendent and relating to
34    such lease;
 
SB99 Engrossed              -3-                LRB9101165MWgc
 1        (6)  No later than 30 days after the  effective  date  of
 2    the lease, the lessee must deliver to the sanitary district a
 3    certified statement of the County Assessor, Township Assessor
 4    or  the  county  clerk  of the county wherein the property is
 5    situated that such property is  presently  contained  in  the
 6    official  list of lands and lots to be assessed for taxes for
 7    the several towns or taxing districts in his county;
 8        (7)  Such lease shall provide for a fixed  annual  rental
 9    payment  for  the  first  year  not  less than 6% of the fair
10    market value as determined under  this  Section  and  may  be
11    subject  to  annual  adjustments  based  on  changes  in  the
12    Consumer   Price   Index   published  by  the  United  States
13    Department of Labor, Bureau  of  Labor  Statistics,  or  some
14    other  well  known economic governmental activity index.  Any
15    lease, the term of which will extend for 15  years  or  more,
16    shall  provide for a redetermination of the fair market value
17    (independent of improvements to the  property  subsequent  to
18    the  effective  date of the lease) after the initial 10 years
19    and every 10 years thereafter, in the  manner  set  forth  in
20    paragraph  (2) of this Section, said redetermination to be as
21    of the first day of  each  succeeding  10  year  period,  and
22    annual rental payments shall be adjusted so that the ratio of
23    annual  rental to fair market value shall be the same as that
24    ratio for the first year of the  preceding  10  year  period.
25    The  rental  payment  for  the  first year of the new 10 year
26    period may be  subject  to  Consumer  Price  Index  or  other
27    allowable  index adjustments for each of the next 9 years, or
28    until the end of the lease term if  there  are  less  than  9
29    years remaining.
30        (8)  A  sanitary  district may require compensation to be
31    paid in addition to rent, based on a reasonable percentage of
32    revenues derived from a lessee's business operations  on  the
33    leasehold  premises  or  subleases, or may require additional
34    compensation from the lessee or any sublessee in the form  of
 
SB99 Engrossed              -4-                LRB9101165MWgc
 1    services,  including but not limited to solid waste disposal;
 2    provided, however, that such  additional  compensation  shall
 3    not be considered in determining the highest responsible bid,
 4    said  highest  responsible  bid  to be determined only on the
 5    initial annual rental payment as set forth in  paragraph  (3)
 6    of this Section.
 7        (9)  No  assignment  of  such  lease  or sublease of such
 8    property is effective  unless  approved  in  writing  by  the
 9    general  superintendent and the board of commissioners of the
10    sanitary district. No assignment or sublease is effective  if
11    the  assignee  or  sublessee  is  a trust constituted by real
12    property of which the trustee  has  title  but  no  power  of
13    management   or   control,   unless   the   identity  of  the
14    beneficiaries of the trust is revealed, upon demand,  to  the
15    general  superintendent and the board of commissioners of the
16    sanitary district;
17        (10)  Failure by the lessee to comply with a provision in
18    the lease relating to improvements upon the  leased  property
19    or  any other provision constitutes grounds for forfeiture of
20    the lease, and upon such failure the sanitary district acting
21    through the general superintendent  shall  serve  the  lessee
22    with  a  notice to terminate the lease and deliver possession
23    of the property to the sanitary district within a  particular
24    period;
25        (11)  If  the  general  superintendent  and  the board of
26    commissioners  conclude  that  it  would  be  in  the  public
27    interest, said sanitary district  may  lease  to  the  United
28    States  of America and the State of Illinois, County of Cook,
29    any municipal  corporation,  or  any  institution  of  higher
30    learning  which  has  been  in existence for 5 years prior to
31    said lease, provided that such lease limit the  institution's
32    use of the leased land to only those purposes relating to the
33    operation   of   such   institution's  academic  or  physical
34    educational  programs  without  complying  with   the   prior
 
SB99 Engrossed              -5-                LRB9101165MWgc
 1    provisions  of  this  section,  upon  such  terms  as  may be
 2    mutually agreed upon, in accordance with  an  act  concerning
 3    "Transfer  of  Real  Estate  between Municipal Corporations",
 4    approved July 2, 1925, as amended, with provisions that  such
 5    property  is to be applied exclusively to public recreational
 6    purposes or other public purposes  and  that  such  lease  is
 7    terminable in accordance with service of a one-year notice to
 8    terminate  after  determination by the board of commissioners
 9    and the general superintendent that such  property  (or  part
10    thereof)  has  become  essential to the corporate purposes of
11    the sanitary district.
12    (Source: P.A. 85-1342.)

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