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90_HB2841
70 ILCS 2605/8c from Ch. 42, par. 327c
Amends the Metropolitan Water Reclamation District Act.
Provides that if there is more than one responsible bid for
the lease of property for corporate purposes of a sanitary
district, the board of commissioners may authorize and direct
the general superintendent to solicit from each responsible
bidder written amendments to their prior bid, increasing
their rental bid proposal by at least 5% in excess of their
prior written bid, or otherwise amending the financial terms
of their bid so as to maximize the financial return to the
sanitary district during the term of the proposed lease.
Provides that upon the general superintendent's tentative
agreement with one or more amended bids, the bids may be
submitted to the board of commissioners with the
recommendation of the general superintendent for acceptance
of one or rejection of all. Provides that the amendments may
not result in a diminution of the terms of the transaction
and must result in an agreement that is equal to or greater
in value than the highest responsible bid initially received.
LRB9009558KDks
LRB9009558KDks
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)
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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 each responsible bidder
16 written amendments to their prior bid, increasing their
17 rental bid proposal by at least 5% in excess of their prior
18 written bid, or otherwise amending the financial terms of
19 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;
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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
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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
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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.)