TO: Mayor and City Council
FROM: Beth Beatty, City Manager
SUBJECT:
title
Resolution Authorizing Approval and Execution of a Real Estate Sales Agreement for the Purchase of Real Property (710-718 South Raynor Avenue) and Purchase of Related Insurance
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BACKGROUND:
The Department of Public Utilities Water and Sewer Field Operations Garage and Administration building at 921 W. Washington Street was built in the early 1980s. The facility is no longer adequate to provide current levels of service and needs to be replaced. The current site is not large enough to provide the acreage identified in the space needs assessment and will be repurposed for other water facilities needed for the City's switch to Lake Michigan water. Upon a thorough review of suitable, available properties, staff has identified 710-718 South Raynor Avenue as the best location for construction of the new Public Utilities Water and Sewer Field Operations Garage and Administration building.
The City conducted negotiations per the Uniform Relocation Assistance and Real Property Acquisition Act with the owner, Glosky Enterprises, Inc., and negotiated a purchase price, in the amount of $1,475,000.00, which will be paid for with funds from the Alternative Water Source Program Fund - Joliet Improvements (Org 54080000, Object 557100).
In addition, it is recommended that the City purchase environmental liability insurance at the time of closing on the purchase. Only a few insurance companies provide this type of insurance. The City, upon consultation with its special environmental legal counsel, obtained proposals for the scope of, and price for, coverage for this Property from two qualified companies. After evaluating the proposals based on both scope and price, it is recommended that the City purchase the environmental liability insurance policy in an amount not to exceed $155,000.00 from Beazley (Lloyd's Syndicates 623/2623), which will be paid for with funds from the Alternative Water ...
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