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Public Act 91-0248
SB99 Enrolled LRB9101165MWgc
AN ACT to amend the Metropolitan Water Reclamation
District Act by changing Section 8c.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Metropolitan Water Reclamation District
Act is amended by changing Section 8c as follows:
(70 ILCS 2605/8c) (from Ch. 42, par. 327c)
Sec. 8c. Every lease of property no longer or not
immediately required for corporate purposes of a sanitary
district, from such district to others for a term not to
exceed 99 years, in accordance with Section 8 of this Act,
shall be negotiated, created and executed in the following
manner:
(1) Notice of such proposed leasing shall be published
for 3 consecutive weeks in a newspaper of general circulation
published in such sanitary district, if any, and otherwise in
the county containing such district;
(2) Prior to receipt of bids for the lease under this
Section, the fair market value of every parcel of real
property to be leased must be determined by 2 professional
appraisers who are members of the American Institute of Real
Estate Appraisers or a similar, equivalently recognized
professional organization. The sanitary district acting
through the general superintendent may select and engage an
additional appraiser for such determination of fair market
value. Every appraisal report must contain an affidavit
certifying the absence of any collusion involving the
appraiser and relating to the lease of such property;
(3) Such lease must be awarded to the highest
responsible bidder (including established commercial or
industrial concerns and financially responsible individuals)
upon free and open competitive bids, except that no lease may
be awarded unless the bid of such highest responsible bidder
provides for an annual rental payment to the sanitary
district of at least 6% of the fair market value determined
under this Section;
(4) Prior to acceptance of the bid of the highest
responsible bidder and before execution of the lease the
bidder shall submit to the board of commissioners and general
superintendent, for incorporation in the lease, a detailed
plan and description of improvements to be constructed upon
the leased property, the time within which the improvements
will be completed, and the intended uses of the leased
property. If there is more than one responsible bid, the
board of commissioners may authorize and direct the general
superintendent to solicit from the 2 highest responsible
bidders written amendments to their prior bids, 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.
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.
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;
(5) The execution of such lease must be contemporaneous
to the execution by the lessee, each member of the board of
commissioners and the general superintendent of an affidavit
certifying the absence of any collusion involving the lessee,
the members and the general superintendent and relating to
such lease;
(6) No later than 30 days after the effective date of
the lease, the lessee must deliver to the sanitary district a
certified statement of the County Assessor, Township Assessor
or the county clerk of the county wherein the property is
situated that such property is presently contained in the
official list of lands and lots to be assessed for taxes for
the several towns or taxing districts in his county;
(7) Such lease shall provide for a fixed annual rental
payment for the first year not less than 6% of the fair
market value as determined under this Section and may be
subject to annual adjustments based on changes in the
Consumer Price Index published by the United States
Department of Labor, Bureau of Labor Statistics, or some
other well known economic governmental activity index. Any
lease, the term of which will extend for 15 years or more,
shall provide for a redetermination of the fair market value
(independent of improvements to the property subsequent to
the effective date of the lease) after the initial 10 years
and every 10 years thereafter, in the manner set forth in
paragraph (2) of this Section, said redetermination to be as
of the first day of each succeeding 10 year period, and
annual rental payments shall be adjusted so that the ratio of
annual rental to fair market value shall be the same as that
ratio for the first year of the preceding 10 year period.
The rental payment for the first year of the new 10 year
period may be subject to Consumer Price Index or other
allowable index adjustments for each of the next 9 years, or
until the end of the lease term if there are less than 9
years remaining.
(8) A sanitary district may require compensation to be
paid in addition to rent, based on a reasonable percentage of
revenues derived from a lessee's business operations on the
leasehold premises or subleases, or may require additional
compensation from the lessee or any sublessee in the form of
services, including but not limited to solid waste disposal;
provided, however, that such additional compensation shall
not be considered in determining the highest responsible bid,
said highest responsible bid to be determined only on the
initial annual rental payment as set forth in paragraph (3)
of this Section.
(9) No assignment of such lease or sublease of such
property is effective unless approved in writing by the
general superintendent and the board of commissioners of the
sanitary district. No assignment or sublease is effective if
the assignee or sublessee is a trust constituted by real
property of which the trustee has title but no power of
management or control, unless the identity of the
beneficiaries of the trust is revealed, upon demand, to the
general superintendent and the board of commissioners of the
sanitary district;
(10) Failure by the lessee to comply with a provision in
the lease relating to improvements upon the leased property
or any other provision constitutes grounds for forfeiture of
the lease, and upon such failure the sanitary district acting
through the general superintendent shall serve the lessee
with a notice to terminate the lease and deliver possession
of the property to the sanitary district within a particular
period;
(11) If the general superintendent and the board of
commissioners conclude that it would be in the public
interest, said sanitary district may lease to the United
States of America and the State of Illinois, County of Cook,
any municipal corporation, or any institution of higher
learning which has been in existence for 5 years prior to
said lease, provided that such lease limit the institution's
use of the leased land to only those purposes relating to the
operation of such institution's academic or physical
educational programs without complying with the prior
provisions of this section, upon such terms as may be
mutually agreed upon, in accordance with an act concerning
"Transfer of Real Estate between Municipal Corporations",
approved July 2, 1925, as amended, with provisions that such
property is to be applied exclusively to public recreational
purposes or other public purposes and that such lease is
terminable in accordance with service of a one-year notice to
terminate after determination by the board of commissioners
and the general superintendent that such property (or part
thereof) has become essential to the corporate purposes of
the sanitary district.
(Source: P.A. 85-1342.)
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