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
end
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 Source Program Fund - Joliet Improvements (Org 54080000, Object 557100).
Also, the northeast portion of the property is located within Joliet city limits and the southwest portion of the property is located in the Village of Rockdale. In order to develop the property as a unified site under Joliet requirements, it is recommended that staff be authorized to file applications for the portion of the property located in Rockdale to be disconnected from Rockdale and annexed to Joliet and take such other actions as necessary to complete the disconnection and annexation processes. This action was authorized by Rockdale and Joliet in an Interim Water Supply Agreement dated December 19, 2023.
The Public Service Committee will review this matter.
Address Price
710-718 S. Raynor $1,475,000.00
Tax ID #s: 30-07-16-328-003-0010; 30-07-16-328-003-0020; 30-07-16-328-003-0030; 30-07-20-210-018-0010; 30-07-20-210-018-0020; 30-07-20-210-018-0030
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 710-718 S. Raynor Avenue in the amount of $1,475,000.00, which is substantially the same as the attached Exhibit A 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 Agreement and complete the acquisition of the property and (c) authorizing the City Manager or her designee to take such actions as may be necessary to purchase the related environmental liability insurance and (d) authorizing the City Manager or her designee to take such actions as are necessary in connection with the disconnection of the property from Rockdale and annexation of the property to Joliet.
end