TO: Mayor and City Council
FROM: Beth Beatty, City Manager
SUBJECT:
title
Resolution Authorizing Approval and Execution of a Real Estate Sales Agreement (Southeast Corner of County Line and Black Roads) and an Intergovernmental Agreement with the Village of Shorewood for the Purchase of Real Property
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BACKGROUND:
The Alternative Water Source Program to deliver Lake Michigan water to Joliet and the Grand Prairie Water Commission (GPWC) member communities will require significant waterworks system improvements. These improvements include the addition of regional and member community owned pumping stations and storage tanks at new sites which will require the acquisition of real estate as well as easements for regional transmission mains.
One of these sites is located at the southeast corner of County Line and Black Roads in unincorporated Will County. This location will provide sites for (1) construction of a regional water storage tank and provide space for a future regional pumping station and water storage tanks (20 acres); (2) construction of a City owned pumping station and related water storage tanks and provide space for a future City pumping station and water storage tanks in addition to space for a future City field operations garage (20 acres); and (3) Village of Shorewood facilities for water service by Shorewood (10 acres). The owner of this property also owns adjacent land along Black Road and County Line Road and has agreed to grant necessary permanent and temporary easements in that land for regional transmission mains along both roads.
In February 2022, the City entered into a Preliminary Agreement Regarding Formation of a Regional Water Commission. In this agreement, the City of Joliet is identified as the Program Manager and is responsible for contracting for development of the Program which includes land acquisition for water commission improvements.
The Village of Shorewood has agreed to pay its proportionate share of the purchase price in order to obtain a portion of the property for its future facilities and the City and the Village of Shorewood have agreed on the terms of an intergovernmental agreement to enable the joint acquisition of the property.
The City, in its role as Program Manager for the GPWC, conducted negotiations per the Uniform Relocation Assistance and Real Property Acquisition Act with the owner, Shorewood Farms, LLC, and negotiated a purchase price, in the amount of $2,500,000.00* ($50,000.00 per surveyed acre) which will be paid for with funds from the Alternative Water Source Program Fund - Regional Water Commission (Org 53180000, Object 557100, $1,000,000.00*) and Alternative Water Source Program Fund - Joliet Improvements (Org 54080000, Object 557100, $1,000,000.00*). Costs associated with the Regional Water Commission property will be credited back to Joliet’s contribution to the water commission. Per the Intergovernmental Agreement for Real Estate Acquisition, Shorewood will provide $500,000.00* directly to the owner at the time of closing.
Address Tax ID # Purchase Price
Black & County Line Roads 05-06-07-100-006-0000 $2,500,000.00*
(southeast corner)
*to be adjusted based on a sale price of $50,000 per surveyed acre to be determined at final survey
In addition, the City negotiated the acquisition of permanent and temporary easements for the regional transmission main for an amount not to exceed $40,000.00** ($15,000.00 per surveyed acre for permanent easements and $5,000.00 per surveyed acre for temporary easements). Funds are available in the Alternative Water Source Program Fund - Regional Water Commission (Org 53180000, Object 557100, $40,000.00**). Costs associated with the permanent and temporary easements will be credited back to Joliet’s contribution to the water commission.
Address Tax ID # Easement Price
Black & County Line Roads 05-06-07-100-006-0000 $40,000.00**
05-06-07-300-003-0010
05-06-07-300-003-0020
**to be adjusted based on a sale price of $15,000.00 per surveyed acre for permanent easements and $5,000.00 per surveyed acre for temporary easements to be determined at final survey.
The Public Service Committee will review this matter at the June 17, 2024 Public Service Meeting.
RECOMMENDATION:
recommendation
The Administration recommends the Mayor and City Council adopt the attached Resolution (a) approving and authorizing the Mayor and City Clerk to execute and seal the Real Estate Sales Agreement for the Purchase of Real Property at Black and County Line Roads in the amount of $2,500,000.00* and adjacent easements along Black and County Line Roads in the amount of $40,000.00** and the Intergovernmental Agreement for Real Estate Acquisition with the Village of Shorewood, which are substantially the same as the attached Exhibit A and B and (b) authorizing the City Manager or her designee to take such actions as may be necessary for the City to comply with the terms of the Real Estate Sales Agreement and the Intergovernmental Agreement for Real Estate Acquisition and complete the acquisition of the property and the easements, including without limitation execution of necessary easement agreements in a form acceptable to the City Manager.
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