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TO: Mayor Irvin and the City Council
FROM: Ken Schroth, City Engineer
Rick Veenstra, Corporation Counsel
DATE: September 23, 2019
SUBJECT:
The proposed sale of City property located along Mettel Rd. south of the Ronald Reagan Memorial Tollway to the Illinois State Toll Highway Authority (Tollway).
PURPOSE:
To obtain the Council's approval of the attached ordinance and contract for the sale of real estate with the Illinois Tollway to sell approximately 25.135 acres of City-owned property to the Tollway for $6,020,000.00. The Tollway intends to relocate its maintenance facility near the Naperville Rd./Freedom Dr. exit in Naperville to the new site.
BACKGROUND:
In 1997, the City purchased property along Mettel Rd., South of I-88 and east of Aurora Ave. for eventual use as a public works facility. Over the years, the Public Works Department determined that the site's location on the City's north side was not as well suited for that purposes as more centrally-located site. Last year, the City acquired property between New York St. and Liberty St. near the Kane County/DuPage County Line with the intention of using the new site for its public works facility. This allowed the City to re-enter discussions with the Tollway which had previously approached the City to acquire the property.
DISCUSSION:
Following amicable negotiations with the Tollway, the parties agreed to a purchase price of $6,020,000.00, which was consistent with the staff's expectation as to the value of the property. The parties have agreed that the City will retain subsurface (below ground) property mineral rights on the property which will allow the City, or its contractor, to mine the property below the surface - preserving a potentially lucrative revenue stream for the City.
IMPACT STATEMENT:
Approval of this ordinance and the underlying contract will allow the parties to proceed with the contemplated sale.
RECOMMENDATIONS:
That the Council approve the ordinance.
cc: Finance Com...
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