Bill Text: IL SB2970 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Metropolitan Water Reclamation District Act. In provisions concerning the leasing of property by a sanitary district, exempts from the lease requirements any academic institution of learning which has been in existence for 5 years prior to the lease, provided that the lease limit the institution's use of the leased land to only those purposes relating to the operation of the institution's academic, "community service", or physical educational programs. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-06-27 - Senate Floor Amendment No. 1 Re-referred to Assignments; Pursuant to Senate Rule 3-9(b). [SB2970 Detail]

Download: Illinois-2009-SB2970-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 SB2970 Introduced 2/3/2010, by Sen. Emil Jones, III SYNOPSIS AS INTRODUCED:
70 ILCS 2605/8c from Ch. 42, par. 327c
Amends the Metropolitan Water Reclamation District Act. In provisions concerning the leasing of property by a sanitary district, exempts from the lease requirements any academic institution of learning which has been in existence for 5 years prior to the lease, provided that the lease limit the institution's use of the leased land to only those purposes relating to the operation of the institution's academic, "community service", or physical educational programs. Effective immediately.
LRB096 19793 RLJ 35234 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning local government.
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. Leases. 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 executive director may select
and engage an additional appraiser for such determination

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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) 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
parcel's fair market value determined under this Section,
provided however, if the sanitary district determines that
a parcel contains a special development impediment,
defined as any condition that constitutes a material
impediment to the development or lease of a parcel, and
includes, but is not limited to: environmental
contamination, obsolescence, or advanced disrepair of
improvements or structures, or accumulation of large
quantities of non-indigenous materials, the sanitary
district may establish a minimum acceptable initial annual
rental of less than 6% of the parcel's fair market value
for the initial 10 years of the lease. In no event will the
annual rental payment for each 10-year period after the
initial 10 years of the lease be less than the 6% of the
parcel's fair market value determined under this Section.
Every 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. In determining the

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responsibility of any bidder, the sanitary district may
consider, in addition to financial responsibility, any
past records of transactions with the bidder and any other
pertinent factors, including but not limited to, the
bidder's performance or past record with respect to any
lease, use, occupancy, or trespass of sanitary district or
other lands.
(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
executive director, 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 executive director 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 executive director's
tentative agreement with one or more amended bids, the bids
may be submitted to the board of commissioners with the
recommendation of the executive director for acceptance of

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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 executive director of an affidavit
certifying the absence of any collusion involving the
lessee, the members and the executive director 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 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)

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after the initial 10 years and every 10 years thereafter,
in the manner set forth in paragraph (2) of this Section,
which redetermination shall be referred to as the decennial
adjustment. Where the property rental is less than 6% of
fair market value due to the existence of a special
development impediment, the first decennial adjustment
shall not occur until the twentieth year of the lease. Such
redetermination shall 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 decennial
adjustment shall not exceed 100% of the rental in effect on
the last day of the preceding 10-year period, except when
the property rental is less than 6% of fair market value
due to the existence of a special development impediment,
in which case, the decennial adjustment shall not be so
limited until the twentieth year of the lease. 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

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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
executive director and the board of commissioners of the
sanitary district. The district may consider, for any
assignment or sublease, all pertinent factors including
the assignee's or sublessee's responsibility in accordance
with subparagraph (3) of this Section. The sanitary
district may also condition its consent upon the
redetermination of the annual rental required to be paid
under any lease initially executed on or before January 1,
1983, for which the annual rent being paid thereunder is
less than 6% of the current appraised fair market value of
the leased property. The redetermination of any annual
rental under this Section shall be consistent with the
requirements of subparagraphs (2) and (3) of this Section.
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

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trust is revealed, upon demand, to the executive director
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 executive director 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 executive director and the board of
commissioners conclude that it would be in the public
interest, said sanitary district may lease without
complying with the prior provisions of this Section, in
accordance with an Act concerning "Transfer of Real Estate
between Municipal Corporations", approved July 2, 1925, as
amended, to the following, upon such terms as may be
mutually agreeable: (a) the United States of America and
the State of Illinois, County of Cook, any municipal
corporation, with provisions that the property is to be
applied exclusively for public recreational purposes or
other public purposes; (b) any academic institution of
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,

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community service, or physical educational programs; or
(c) any lease involving land located in a county with a
population of 100,000 or less and which is leased solely
for agricultural or commercial recreational uses. Any
lease issued in accordance with this paragraph shall
contain the provisions 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
executive director that such property (or part thereof) has
become essential to the corporate purposes of the sanitary
district.
(Source: P.A. 95-604, eff. 9-11-07; 95-923, eff. 1-1-09.)
Section 99. Effective date. This Act takes effect upon
becoming law.