HB1041 Enrolled

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1
    AN ACT concerning local government.

 
2
    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:


 
4
    Section 5. The Metropolitan Water Reclamation District Act 
5
is amended  by changing Sections 8 and 8c as follows:
 



6
    (70 ILCS 2605/8)  (from Ch. 42, par. 327)



7
    Sec. 8. Except as otherwise in this Act provided, the 
8
sanitary district
may acquire by lease, purchase or otherwise 
9
within or without its corporate
limits, or by condemnation 
10
within its corporate limits, any and all real
and personal 
11
property, right of way and privilege that may be required for

12
its corporate purposes. All moneys for the purchase and 
13
condemnation of
any property must be paid before possession is 
14
taken, or any work done on
the premises. In case of an appeal 
15
from the Court in which the condemnation
proceedings are 
16
pending, taken by either party, whereby the amount of damages

17
is not finally determined, the amount of the judgment in the 
18
court shall
be deposited with the county treasurer of the 
19
county in which the judgment
is rendered, subject to the 
20
payment of damages on orders signed by the judge
whenever the 
21
amount of damages is finally determined.

22
    Upon recommendation of the general superintendent and upon 
23
the
approval of the board of trustees when any real or personal 
 


 






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property,
right of way or privilege or any interest therein, or 
2
any part thereof
of such sanitary district is no longer 
3
required for the corporate
purposes of the sanitary district it 
4
may be sold, vacated or released.
Such sales, vacations, or 
5
releases may be made subject to such
conditions and the 
6
retention of such interest therein as may be deemed
for the 
7
best interest of such sanitary district as recommended by the

8
general superintendent and approved by the board of trustees.

9
    However, the sanitary district may enter into a lease of a 
10
building
or a part thereof, or acquire title to a building 
11
already constructed or
to be constructed, for the purpose of 
12
securing office space for its
administrative corporate 
13
functions, the period of such lease not to
exceed 15 years 
14
except as authorized by the provisions of Section 8b of
this 
15
Act.  In the event of the purchase of such property for

16
administrative corporate functions, the sanitary district may 
17
execute a
mortgage or other documents of indebtedness as may be 
18
required for the
unpaid balance, to be paid in not more than 15 
19
annual installments.
Annual installments on the mortgage or 
20
annual payment on the lease shall
be considered a current 
21
corporate expense of the year in which they are
to be paid, and 
22
the amount of such annual installment or payment shall
be 
23
included in the Annual Appropriation and Corporate Tax Levy

24
Ordinances. Such expense may be incurred, notwithstanding the

25
provisions, if any applicable, contained in any other Sections 
26
of this
Act.

 


 






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    The sanitary district may dedicate to the public for 
2
highway purposes
any of its real property and the dedications 
3
may be made subject to such
conditions and the retention of 
4
such interests therein as considered in
the best interests of 
5
the sanitary district by the board of trustees
upon 
6
recommendation of the general superintendent.

7
    The sanitary district may lease to others for any period of 
8
time, not
to exceed 99 years, upon the terms as its board of 
9
trustees upon
recommendation of the general superintendent may 
10
determine, any such
real property, right-of-way or privilege, 
11
or any interest therein or any
part thereof, which is in the 
12
opinion of the board of trustees and
general superintendent of 
13
the sanitary district no longer required for
its corporate 
14
purposes or which may not be immediately needed for such

15
purposes. The leases may contain such terms and conditions, 
16
including restrictions as to permissible use of the real 
17
property, and retain such
interests therein as considered in 
18
the best interests of the sanitary
district by the board of 
19
trustees upon recommendation of the general
superintendent. 
20
Negotiations and execution of such leases and
preparatory 
21
activities in connection therewith must comply with Section
8c 
22
of this Act. The sanitary district may grant easements and 
23
permits
for the use of any such real property, right-of-way, or 
24
privilege, which
will not in the opinion of the board of 
25
trustees and general
superintendent of the sanitary district 
26
interfere with the use thereof
by the sanitary district for its 
 


 






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corporate purposes. Such easements and
permits may contain such 
2
conditions and retain such interests therein as
considered in 
3
the best interests of the sanitary district by the board
of 
4
trustees upon recommendation of the general superintendent.

5
    No sales, vacations, dedications for highway purposes, or 
6
leases for periods
in excess of 5 years, of the following 
7
described real estate, may be made
or granted by the sanitary 
8
district without the approval in writing of the
Director of 
9
Natural Resources of the State
of Illinois:

10
    All the right-of-way of the Calumet-Sag Channel of the 
11
sanitary
district extending from the Little Calumet River near 
12
Blue Island,
Illinois, to the right-of-way of the main channel 
13
of the sanitary
district near Sag, Illinois.

14
    Lots 1, 3, 5, 21, 30, 31, 32, 33, 46, 48, 50, 52, 88, 89, 
15
89a, 90,
91, 130, 132, 133, those parts of Lots 134 and 139 
16
lying northeasterly
of a tract of land leased to the Corn 
17
Products Manufacturing Company
from January 1, 1908, to 
18
December 31, 2006; 1000 feet of Lot 141 lying
southwesterly of 
19
and adjoining the above mentioned leased tract measured

20
parallel with the main channel of the sanitary district; Lots 
21
166, 168,
207, 208, and part of Lot 211 lying northeasterly of 
22
a line 1500 feet
southwesterly of the center line of Stephen 
23
Street, Lemont, Illinois,
and parallel with said street 
24
measured parallel with said main channel;
and Lot 212 of the 
25
Sanitary District Trustees Subdivision of
right-of-way from 
26
the north and south center line of Section 30,
Township 39 
 


 






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North, Range 14 East of the Third Principal Meridian, to
Will 
2
County line.

3
    That part of the right-of-way of the main channel of the 
4
sanitary
district in Section 14, Township 37 North, Range 11 
5
East of the Third
Principal Meridian, lying southerly of said 
6
main channel, northerly of
the Northerly Reserve Line of the 
7
Illinois and Michigan Canal, and
westerly of the Center line of 
8
the old channel of the Des Plaines River.

9
    That part of said main channel right-of-way in Section 35, 
10
Township
37 North, Range 10 East of the Third Principal 
11
Meridian, lying east of
said main channel and south of a line 
12
1,319.1 feet north of and parallel
with the south line of said 
13
Section 35.

14
    That part of said main channel right-of-way in the 
15
northeast quarter
of the northwest quarter of Section 2, 
16
Township 36 North, Range 10 East
of the Third Principal 
17
Meridian, lying east of said main channel.

18
    That part of said main channel right-of-way lying south of 
19
Ninth
Street in Lockport, Illinois.

20
    Notwithstanding any other law, if any surplus real
estate 
21
is located in an unincorporated territory and if that real 
22
estate is
contiguous to only one municipality, 60 days before 
23
the sale of that real
estate, the sanitary district shall 
24
notify in writing the contiguous
municipality of the proposed 
25
sale.  Prior to the sale of the real estate, the
municipality 
26
shall notify in writing the sanitary district that the

 


 






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municipality will or will not annex the surplus real estate.  If 
2
the contiguous
municipality will annex such surplus real 
3
estate, then coincident with the
completion of the sale of that 
4
real estate by the sanitary district, that real
estate shall be 
5
automatically annexed to the contiguous municipality.

6
    All sales of real estate by the sanitary district must be 
7
for
cash, to the highest bidder upon open competitive bids, and 
8
the proceeds of
the sales may be
used only for the construction 
9
and equipment of sewage disposal plants, pumping
stations and 
10
intercepting sewers and appurtenances thereto, the
acquisition 
11
of sites and easements therefor, and the financing of the Local

12
Government Assistance Program established under Section 9.6c.

13
    However, the sanitary district may:

14
    (a) Remise, release, quit claim and convey, without the 
15
approval of the
Department of Natural Resources of the State
of 
16
Illinois acting by and through its Director, to the
United 
17
States of America without any consideration to be paid 
18
therefor,
in aid of the widening of the Calumet-Sag Channel of 
19
the sanitary district
by the United States of America, all 
20
those certain lands, tenements and
hereditaments of every kind 
21
and nature of that portion of the established
right-of-way of 
22
the Calumet-Sag Channel lying east of the east line of Ashland

23
Avenue, in Blue Island, Illinois, and south of the center line 
24
of the channel
except such portion thereof as is needed for the 
25
operation and maintenance
of and access to the controlling 
26
works lock of the sanitary district;

 


 






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    (b) Without the approval of the Department of Natural 
2
Resources of the State of Illinois acting by and through its

3
Director, give and grant to
the United States of America 
4
without any consideration to be paid therefor
the right, 
5
privilege and authority to widen the Calumet-Sag Channel and 
6
for
that purpose to enter upon and use in the work of such 
7
widening and for the
disposal of spoil therefrom all that part 
8
of the right-of-way of the
Calumet-Sag Channel owned by the 
9
sanitary district lying south of the
center line of the 
10
Calumet-Sag Channel from its connection with the main
channel 
11
of the sanitary district to the east line of Ashland Avenue in 
12
Blue
Island, Illinois;

13
    (c) Make alterations to any structure made necessary by 
14
such
widening and to construct, reconstruct or otherwise alter 
15
the existing
highway bridges of the sanitary district across 
16
the Calumet-Sag Channel;

17
    (d) Give and grant to the United States of America without 
18
any
consideration to be paid therefor the right to maintain the 
19
widened
Calumet-Sag Channel without the occupation or use of or 
20
jurisdiction
over any property of the sanitary district 
21
adjoining and adjacent to
such widened channel;

22
    (e) Acquire by lease, purchase, condemnation or otherwise, 
23
whatever
land, easements or rights of way, not presently owned 
24
by it, that may be
required by the United States of America in 
25
constructing the Calumet-Sag
Navigation Project, as approved 
26
in Public Law 525, 79th Congress, Second
Session as described 
 


 






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in House Document No. 677 for widening and dredging
the 
2
Calumet-Sag Channel, in improving the Little Calumet River 
3
between
the eastern end of the Sag Channel and Turning Basin 
4
No. 5, and in
improving the Calumet River between Calumet 
5
Harbor and Lake Calumet;

6
    (f) Furnish free of cost to the United States all lands, 
7
easements,
rights-of-way and soil disposal areas necessary for 
8
the new work and for
subsequent maintenance by the United 
9
States;

10
    (g) Provide for the necessary relocations of all utilities.

11
    Whatever land acquired by the sanitary district may 
12
thereafter be
determined by the Board of Trustees upon 
13
recommendation of the general
superintendent as not being 
14
needed by the United States for the purposes
of constructing 
15
and maintaining the Calumet-Sag Navigation Project as
above 
16
described, shall be retained by the sanitary district for its

17
corporate purposes, or be sold, with all convenient speed, 
18
vacated or
released (but not leased) as its Board of Trustees 
19
upon recommendation
of the general superintendent may 
20
determine: All sales of such real
estate must be for cash, to 
21
the highest bidder upon open, competitive
bids, and the 
22
proceeds of the sales may be used only for the purpose of

23
paying principal and interest upon the bonds authorized by this 
24
Act, and
if no bonds are then outstanding, for the purpose of 
25
paying principal
and interest upon any general obligation bonds 
26
of the sanitary district,
and for corporate purposes of the 
 


 






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sanitary district.  When the proceeds
are used to pay bonds and 
2
interest, proper abatement shall be made in
the taxes next 
3
extended for such bonds and interest.

4
(Source: P.A. 89-445, eff. 2-7-96; 89-502, eff. 6-28-96; 
5
90-568, eff.
1-1-99; 90-690, eff. 7-31-98.)

 



6
    (70 ILCS 2605/8c)  (from Ch. 42, par. 327c)


7
    Sec. 8c. Every lease of property no longer or not 
8
immediately
required for corporate purposes of a sanitary 
9
district, from such
district to others for a term not to exceed 
10
99 years, in accordance with
Section 8 of this Act, shall be 
11
negotiated, created and executed in the
following manner:

12
    (1) Notice of such proposed leasing shall be published for 
13
3
consecutive weeks in a newspaper of general circulation 
14
published in
such sanitary district, if any, and otherwise in 
15
the county containing
such district.

16
    (2) Prior to receipt of bids for the lease under this 
17
Section, the
fair market value of every parcel of real property 
18
to be leased must be
determined by 2 professional appraisers 
19
who are members of the American
Institute of Real Estate 
20
Appraisers or a similar, equivalently
recognized professional 
21
organization. The sanitary district acting
through the general 
22
superintendent may select and engage an additional
appraiser 
23
for such determination of fair market value. Every appraisal

24
report must contain an affidavit certifying the absence of any 
25
collusion
involving the appraiser and relating to the lease of 
 


 






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such property.

2
    (3) No
Such lease must be awarded to the highest 
3
responsible bidder
(including established commercial or 
4
industrial concerns and financially
responsible individuals) 
5
upon free and open competitive bids, except
that no lease may 
6
be awarded unless the bid of such highest responsible
bidder 
7
provides for an annual rental payment to the sanitary district 
8
of
at least 6% of the parcel's fair market value determined 
9
under this Section, provided however, if the sanitary district 
10
determines that a parcel contains a special development 
11
impediment, defined as any condition that constitutes a 
12
material impediment to the development or lease of a parcel, 
13
and includes, but is not limited to: environmental 
14
contamination, obsolescence, or advanced disrepair of 
15
improvements or structures, or accumulation of large 
16
quantities of non-indigenous materials, the sanitary district 
17
may establish a minimum acceptable initial annual rental of 
18
less than 6% of the parcel's fair market value for the initial 
19
10 years of the lease. In no event will the annual rental 
20
payment for each 10-year period after the initial 10 years of 
21
the lease be less than the 6% of the parcel's fair market value 
22
determined under this Section. Every lease must be awarded to 
23
the highest responsible bidder (including established 
24
commercial or industrial concerns and financially responsible 
25
individuals) upon free and open competitive bids. In 
26
determining the responsibility of any bidder, the Sanitary 
 


 






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District may consider, in addition to financial 
2
responsibility, any  past records of transactions with the 
3
bidder and any other pertinent factors, including but not 
4
limited to, the bidder's performance or past record  with 
5
respect to any lease, use, occupancy, or trespass of Sanitary 
6
District or other lands.

7
    (4) Prior to acceptance of the bid of the highest 
8
responsible bidder
and before execution of the lease the bidder 
9
shall submit to the board
of commissioners and general 
10
superintendent, for incorporation in the lease,
a detailed plan 
11
and description of improvements to be constructed upon
the 
12
leased property, the time within which the improvements will be

13
completed, and the intended uses of the leased property.  If 
14
there is more
than one responsible bid, the board of 
15
commissioners may authorize and direct
the general 
16
superintendent to solicit from the 2 highest responsible 
17
bidders
written amendments to their prior bids, increasing 
18
their rental bid proposal
by at least 5% in excess of their 
19
prior written bid, or otherwise amending the
financial terms of 
20
their bid so as to maximize the financial return to the

21
sanitary district during the term of the proposed lease.  Upon 
22
the general
superintendent's tentative agreement with one or 
23
more amended bids, the bids
may be submitted to the board of 
24
commissioners with the recommendation of the
general 
25
superintendent for acceptance of one or rejection of all.  The

26
amendments may not result in a diminution of the terms of the 
 


 






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transaction and
must result in an agreement that is equal to or 
2
greater in value than the
highest responsible bid initially 
3
received.

4
    (5) The execution of such lease must be contemporaneous to 
5
the
execution by the lessee, each member of the board of 
6
commissioners and the
general superintendent of an affidavit 
7
certifying the absence of any
collusion involving the lessee, 
8
the members and the general
superintendent and relating to such 
9
lease.

10
    (6) No later than 30 days after the effective date of the 
11
lease, the
lessee must deliver to the sanitary district a 
12
certified statement of
the County Assessor, Township Assessor 
13
or the county clerk of the county
wherein the property is 
14
situated that such property is presently
contained in the 
15
official list of lands and lots to be assessed for
taxes for 
16
the several towns or taxing districts in his county.

17
    (7) Such lease shall provide for a fixed annual rental 
18
payment for the
first year not less than 6% of the fair market 
19
value as determined under
this Section and may be subject to 
20
annual adjustments based on changes in
the Consumer Price Index 
21
published by the United States Department of
Labor, Bureau of 
22
Labor Statistics, or some other well known economic

23
governmental activity index.  Any lease, the term of which will 
24
extend for
15 years or more, shall provide for a 
25
redetermination of the fair market
value (independent of 
26
improvements to the property subsequent to the
effective date 
 


 






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of the lease) after the initial 10 years and every 10 years

2
thereafter, in the manner set forth in paragraph (2) of this 
3
Section, which redetermination shall be referred to as the 
4
decennial adjustment.  Where the property rental is less than 6% 
5
of fair market value due to the existence of a special 
6
development impediment, the first decennial adjustment shall 
7
not occur until the twentieth year of the lease. Such
said

8
redetermination shall
to be as of the first day of each 
9
succeeding 10 year period,
and annual rental payments shall be 
10
adjusted so that the ratio of annual
rental to fair market 
11
value shall be the same as that ratio for the first
year of the 
12
preceding 10 year period. The decennial adjustment shall not 
13
exceed 100%  of the rental in effect on the last day of the 
14
preceding 10-year period,  except when  the property rental is 
15
less than 6% of fair market value due to the existence of a 
16
special development impediment, in which case, the decennial 
17
adjustment shall not be so limited until the twentieth year of 
18
the lease.  The rental payment for the first
year of the new 10 
19
year period may be subject to Consumer Price Index or
other 
20
allowable index adjustments for each of the next 9 years, or 
21
until
the end of the lease term if there are less than 9 years 
22
remaining.

23
    (8) A sanitary district may require compensation to be paid 
24
in addition to
rent, based on a reasonable percentage of 
25
revenues derived from a lessee's
business operations on the 
26
leasehold premises or subleases, or may require
additional 
 


 






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compensation from the lessee or any sublessee in the form of

2
services, including but not limited to solid waste disposal; 
3
provided,
however, that such additional compensation shall not 
4
be considered in
determining the highest responsible bid, said 
5
highest responsible bid to be
determined only on the initial 
6
annual rental payment as set forth in
paragraph (3) of this 
7
Section.

8
    (9) No assignment of such lease or sublease of such 
9
property is
effective unless approved in writing by the general 
10
superintendent and
the board of commissioners of the sanitary 
11
district. The District may consider, for any assignment or 
12
sublease,    all pertinent factors including  the assignee's or 
13
sublessee's responsibility in accordance with  subparagraph (3) 
14
of this Section.  The sanitary district  may also condition its 
15
consent upon the redetermination of the annual rental required 
16
to be paid  under any lease initially executed on or before 
17
January 1, 1983, for which  the annual rent being paid 
18
thereunder is less than 6% of the current appraised fair market 
19
value of the leased property.  The redetermination of  any  annual 
20
rental under this Section  shall be consistent  with the 
21
requirements of subparagraphs (2) and (3) of this Section. No 
22
assignment or
sublease is effective if the assignee or 
23
sublessee is a trust
constituted by real property of which the 
24
trustee has title but no power
of management or control, unless 
25
the identity of the beneficiaries of
the trust is revealed, 
26
upon demand, to the general superintendent and
the board of 
 


 






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commissioners of the sanitary district.

2
    (10) Failure by the lessee to comply with a provision in 
3
the lease
relating to improvements upon the leased property or 
4
any other provision
constitutes grounds for forfeiture of the 
5
lease, and upon such failure
the sanitary district acting 
6
through the general superintendent shall
serve the lessee with 
7
a notice to terminate the lease and deliver
possession of the 
8
property to the sanitary district within a particular
period.

9
    (11) If the general superintendent and the board of 
10
commissioners
conclude that it would be in the public interest, 
11
said sanitary district
may lease without complying with the 
12
prior provisions of this Section, in accordance with an Act 
13
concerning "Transfer of Real Estate between Municipal 
14
Corporations", approved July 2, 1925, as amended, to the 
15
following, upon such terms as may be mutually agreeable: (a)

16
the United States of America and the State of Illinois,
County 
17
of Cook, any municipal corporation, with provisions that the 
18
property is to be applied exclusively for public recreational 
19
purposes or other public purposes; (b)
or any academic 
20
institution of
learning which has been in existence for 5 years 
21
prior to said lease,
provided that such lease limit the 
22
institution's use of the leased land
to only those purposes 
23
relating to the operation of such institution's
academic or 
24
physical educational programs; or (c) any lease involving  land 
25
located in a county with a population of 100,000 or less and 
26
which is leased solely for agricultural or commercial 
 


 






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recreational uses. Any lease issued in accordance with this 
2
paragraph shall contain the provisions
without complying with 
3
the
prior provisions of this section, upon such terms as may be 
4
mutually
agreed upon, in accordance with an act concerning 
5
"Transfer of Real
Estate between Municipal Corporations", 
6
approved July 2, 1925, as
amended, with provisions that such 
7
property is to be applied exclusively
to public recreational 
8
purposes or other public purposes and that such
lease is 
9
terminable in accordance with service of a one-year notice to

10
terminate after determination by the board of commissioners and 
11
the general
superintendent that such property (or part thereof) 
12
has become essential
to the corporate purposes of the sanitary 
13
district.

14
(Source: P.A. 92-16, eff. 6-28-01; 93-988, eff. 8-23-04.)

 

15
    Section 99. Effective date. This Act takes effect upon 
16
becoming law.