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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.)