HomeMy WebLinkAboutResolution_98-R-25-_Authorizing_the_City_Manager_to_Enter_Into_a_Lease_With_the_Metropolitan_Water_Reclamation_District_for_Park_Properties_(1)_(1)_signed10/27/2025
98-R-25
A RESOLUTION
Authorizing the City Manager to Enter Into a Lease With the
Metropolitan Water Reclamation District for Park Properties
WHEREAS, the City of Evanston currently holds four leases for fifteen park
properties along the North Shore Channel of the Chicago River between Main Street and
Green Bay Road (the “Premises”) from the Metropolitan Water Reclamation District of
Greater Chicago (MWRD); and
WHEREAS, the four leases expire on May 31, 2032, May 6, 2045, July 31,
2053, and January 31, 2068, complicating lease management and eliminating the City’s
ability to apply for and secure grants to improve properties with less than 20 years of
lease control; and
WHEREAS, simplifying the current leasing arrangements to one lease with
a 50-year timeline will help reduce management efforts and allow the City to apply for and
receive grant funding for the Premises; and
WHEREAS, leasing for the MWRD owned Evans at Canal Shores Golf
Course properties north of Green Bay Road will be managed through a separate lease
agreement as MWRD will not allow the Evans at Canal Shores Golf Course to be named
as a sublessee and the City and Evans at Canal Shores Golf Course need time to
develop a management agreement acceptable to all parties; and
WHEREAS, the Premises provide natural and recreational benefits to the
residents of Evanston; and
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98-R-25
WHEREAS, the parties agree that it would be beneficial to continue the
leasing arrangement between the parties; and
WHEREAS, the City Council of the City of Evanston has determined that
the best interest of the City would be served by consolidating and renewing these
leases on the Premises,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1: The City Council hereby adopts the foregoing recitals as its
findings, as if fully set forth herein.
SECTION 2: The City Manager is hereby authorized to sign the “Lease
Agreement” attached hereto as Exhibit 1 and incorporated herein by reference.
SECTION 3: The City Manager is hereby authorized and directed to
negotiate any additional conditions of the Lease Agreement as he may determine to
be in the best interest of the City and in a form acceptable to Corporation Counsel.
SECTION 4: That this Resolution 98-R-25 shall be in full force and effect
from and after its passage and approval in the manner provided by law.
_______________________________
Daniel Biss, Mayor
Attest:
_______________________________
Stephanie Mendoza, City Clerk
Adopted: __________________, 2025
Approved as to form:
_______________________________
Alexandra Ruggie, Corporation Counsel
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October 27
Rev. 10-2-25
BJD:vp
LEASE AGREEMENT
(Governmental Form)
This Lease Agreement (“Lease”) is made and entered into as of October 2, 2025,by and
between the Metropolitan Water Reclamation District of Greater Chicago (“District” or
“Lessor”), a body corporate and politic organized and existing under the laws of the State of Illinois,
with principal offices located at 100 E. Erie Street, Chicago, Illinois 60611, and the City of Evanston,
a municipal corporation organized and existing under the laws of the State of Illinois (“Lessee”), with
principal offices located at 909 Davis Street, Evanston, IL 60201.
WITNESSETH:
WHEREAS, this Lease has been negotiated, created, and executed pursuant to and in
accordance with the Metropolitan Water Reclamation District Act (70 ILCS 2605/1 et seq.);
WHEREAS, this Lease has been entered into in accordance with the District’s Comprehensive
Land Use Policy, as adopted by the District’s Board of Commissioners on December 18, 2014, as
may be amended from time to time;
WHEREAS, the District’s Board of Commissioners authorized this Lease on October 2,
2025;
NOW, THEREFORE, for and in consideration of the covenants and obligations contained
herein and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Lessor and Lessee (the “Parties”) agree as follows:
ARTICLE 1: PREMISES LEASED
1.01. Premises. Lessor hereby demises and leases to Lessee the real property legally described
and depicted on the plat of survey attached hereto as Exhibit A (“Premises”), including any
improvements located thereon at the time of leasing or constructed by Lessee during the Lease
term. For convenience of the Parties, the general location of the Premises is shown on the aerial
photograph attached hereto as Exhibit B. The Premises is located along the North Shore Channel
more or less from Green Bay Road south to Main Street in Evanston, Illinois and consists of
approximately 68.11± acres, known as the District’s North Shore Channel Parcels 2.09, 2.10, 2.11,
2.12, 2.13, 3.01, 3.02, 3.03, 3.04, 4.01; and for brevity, the PINs are listed in Exhibit A.
1.02. Term. The term of this lease is 50 years, commencing on November 1, 2025
(“Commencement Date”), and ending on October 31, 2075, unless sooner terminated under the
provisions of this Lease.
1.03. Use. The Premises may only be used by Lessee for public recreational use, including public
parks, and for no other purpose whatsoever.
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1.04. One-Year Notice to Terminate for Corporate Use of Lessor. In addition to, but not
limited by, any other termination provision in this Lease, this Lease is terminable by Lessor in
accordance with service upon Lessee of a one-year notice to terminate after determination by
Lessor’s Board of Commissioners and Executive Director that the Premises (or part thereof) has
become essential to the corporate purposes of Lessor. In such event, any rent due shall be abated
in direct proportion to the area recovered hereunder as compared to the area of the original
leasehold.
ARTICLE 2: RENT AND SECURITY DEPOSIT
2.01. Rent and Security Deposit. Lessee covenants and agrees to pay Lessor rent for the
Premises and a security deposit, calculated and paid in the following manner:
a.One-Time Rental Fee. Lessee covenants and agrees, in consideration for this Lease, to
pay to Lessor, as rent for the Premises, a one-time fee in the amount of Ten and No/100
Dollars ($10.00), payable upon the execution of this Lease Agreement.
b.Additional Compensation. In addition to the rent, Lessee shall pay to Lessor 25% of the
net revenue generated by Lessee’s public recreational use of or activities on the Premises.
“Net revenue” is defined as the total revenue generated from the leasehold minus Lessee’s
direct costs and expenses to operate and maintain the Premises.
c.Audited Financial Statements. On each anniversary of the effective date of this Lease,
Lessee shall furnish to Lessor an audited and certified statement of all items of income
attributable to Lessee’s use of the Premises and simultaneously remit its check to Lessor in
an amount equal to the aforesaid percentage multiplied by the audited and certified
statement for that one-year period. All such audited and certified statements shall be subject
to confirmation by Lessor. Lessee shall furnish all original books and records or certified
copies thereof necessary to confirm such statements, upon reasonable demand by Lessor,
at no cost to Lessor.
d.Security Deposit. - Intentionally Omitted
2.02. Rent to Be Without Deduction, Setoff, or Counterclaim. This Lease shall be deemed
and construed to be a net Lease. Lessor shall receive all rent and other payments hereunder to be
made by Lessee free from any charges, assessments, expenses, or deductions of any nature
whatsoever. Lessor shall not be responsible for making any expenditure for the maintenance,
repair, or preservation of the real estate or improvements. In no event shall there be any deduction
of any nature whatsoever from rent due to Lessor, and no defense, setoff, or counterclaim shall be
made against rent in any proceeding for the collection of rent, or otherwise for the enforcement of
this Lease.
2.03. Lien for Rent. The whole amount of the rent, and each and every installment thereof,
and the amount of all taxes, assessments, water rates, insurance premiums, and other charges
imposed under the provisions of this Lease, and all costs, reasonable attorney fees and other
expenses which may be incurred by Lessor in enforcing the provisions of this Lease or on account
of any delinquency of Lessee in carrying out any of the provisions of this Lease, shall be and are
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hereby declared to constitute a valid and prior lien upon any Lessee improvements on the Premises,
including any machinery, fixtures and equipment of Lessee situated thereon, and upon Lessee’s
leasehold estate, and may be enforced by equitable remedies including the appointment of a
receiver.
2.04. Interest on Rent Not Paid When Due. Rents and all other sums payable to Lessor shall
be paid in accordance with the provisions of the Illinois Local Government Prompt Payment Act,
50 ILCS 505/1 et seq.
ARTICLE 3. INDEMNIFICATION AND INSURANCE
3.01. Indemnification. To the extent permitted by law, Lessee (including its executors,
administrators, successors, and assigns), agrees to indemnify, defend, and hold harmless the
District (including its Commissioners, officers, agents, and employees), from and against any and
all claims, losses, damages, suits or actions, judgments, fines, penalties, or costs (including
reasonable attorney’s fees) arising out of the use or occupancy of the Premises by Lessee or by
Lessee’s employees, agents, invitees, and customers, during or after the Lease term, including but
not limited to the following: any injury or death to any person; any damage to or loss of any
property; violation of any laws, ordinances, or regulations; any construction, maintenance, or
business activity performed on the Premises, including any mechanics liens; any other negligence,
willful misconduct, or other acts or omissions of Lessee in connection with this Lease. If any such
action or suit is brought against Lessor, Lessor may give written notice of same to Lessee, and
thereafter Lessee shall, at its own cost and expense, defend such actions or suits with due diligence
with counsel reasonably satisfactory to Lessor. The indemnities contained herein shall survive the
termination or expiration of this Lease. No Commissioner, officer, agent, or employee of the
District shall have any direct or personal liability arising out of this Lease.
3.02. Insurance. Lessee, at its own expense, shall procure and maintain, for the duration of
the Lease term, insurance against claims for injuries to persons or damage to property which may
arise from, or in connection with, Lessee’s operation and use of the Premises. The insurance
requirements, including form, coverage limits, etc., are as follows:
3.03. Coverage. Insurance coverage shall be at least as broad as the following:
a.Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering
CGL on an “occurrence” basis, including products and completed operations, property
damage, bodily injury and personal and advertising injury with limits no less than
$4,000,000 per occurrence. If a general aggregate limit applies, either the general
aggregate limit shall apply separately to the Premises (ISO CG 25 03 or 25 04) or the general
aggregate limit shall be twice the required occurrence limit.
b. Workers’ Compensation Insurance as required by the State of Illinois, with Statutory
Limits, and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident
for bodily injury or disease. (This applies to Lessees with employees).
c.Property Insurance against all risks of loss to any improvements or betterments on the
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Premises, at full replacement cost with no coinsurance penalty provision.
d. Premises Pollution Legal Liability Insurance with limits no less than $4,000,000 per
occurrence.
e. Marine General Liability Insurance covering products and completed operations, property
damage, bodily injury, and other marine risks as may be applicable, including but not limited
to charters liability and wharfingers liability, with limits no less than $4,000,000 per
occurrence.
If the Lessee maintains broader coverage and/or higher limits than the minimums shown
above, the District requires and shall be entitled to the broader coverage and/or the higher limits
maintained by Lessee. Any available insurance proceeds in excess of the specified minimum limits
of insurance and coverage shall be available to the District. The insurance provisions of this Lease
shall not affect the indemnification of Lessor by Lessee, as set forth in the Lease.
3.04. Other Insurance Provisions. The insurance policies are to contain, or be endorsed to contain,
the following provisions:
a. Additional Insured Status. The Metropolitan Water Reclamation District of Greater
Chicago, its Commissioners, officers, agents, and employees are to be covered as additional
insureds on the CGL policy,
b. Primary Coverage. For any claims related to this Lease and the Premises, the Lessee’s
insurance coverage shall be primary and non-contributory and at least as broad as ISO CG
20 01 04 13 as it respects the District, its Commissioners, officers, agents, and employees.
Any insurance or self-insurance maintained by the District shall be excess of Lessee’s
insurance and shall not contribute with it. This requirement shall also apply to any Excess
or Umbrella liability policies.
c.Umbrella or Excess Policy. The Lessee may use Umbrella or Excess Policies to provide
the liability limits as required in this Lease agreement, provided that such policies shall
provide all of the insurance coverages herein required, including, but not limited to, primary and
non- contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense
requirements. The Umbrella or Excess policies shall be provided on a true “following form” or
broader coverage basis, with coverage at least as broad as provided on the underlying Commercial
General Liability insurance.
d.Legal Liability Coverage. The property insurance is to be endorsed to include Legal
Liability Coverage (ISO Form CP 00 40 04 02 or equivalent) with a limit equal to the
replacement cost of the leased property.
e.Notice of Cancellation. Each insurance policy required above shall provide that coverage
shall not be canceled, except with notice to the District.
f.Waiver of Subrogation. Lessee hereby grants to the District a waiver of any right to
subrogation which any insurer of said Lessee may acquire against the District by virtue of
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the payment of any loss under such insurance. Lessee agrees to obtain any endorsement that
may be necessary to effect this waiver of subrogation, but this provision applies regardless
of whether or not the District has received a waiver of subrogation endorsement from the
insurer.
g.Self-Insured Retentions. Self-insured retentions (SIR) must be declared to, and approved
by, the District. As part of any approval, the District may require Lessee to purchase coverage
with a lower retention or provide proof of ability to pay losses and related investigations, claim
administration, and defense expenses within the retention. Policies shall not contain any SIR
provision that limits the satisfaction of the SIR to the Named Insured.
h.Acceptability of Insurers. Insurance is to be placed with insurers authorized to conduct
business in the State of Illinois, with a current A.M. Best’s rating of no less than A:VII.
. Verification of Coverage. Lessee shall furnish the District with original certificates and
amendatory endorsements or copies of the applicable policy language effecting coverage
required by this agreement and a copy of the Declarations and Endorsements Pages of the CGL
and any Excess policies listing all policy endorsements. All certificates and endorsements and
copies of the Declarations & Endorsements pages are to be received and approved by the
District before the Lease commences. However, failure to obtain the required documents prior
to the Lease commencement date shall not waive the Lessee’s obligation to provide them. The
District reserves the right to require complete, certified copies of all required insurance
policies, including endorsements required by these specifications, at any time.
j.Special Risks or Circumstances. The District reserves the right to modify these insurance
requirements, including limits, based on the nature of the risk, prior experience, insurer,
coverage, or other special circumstances.
k.Disposition of Insurance Proceeds. As set forth in this Lease, Lessee has the duty to repair
the Premises if the Premises (or any improvements thereon) are damaged or destroyed by any
of the hazards or casualties against which Lessee is to insure the Premises. The rebuilding or
restoration is to be accomplished within one year, or as otherwise approved by Lessor
i n w r i t i n g . Lessee shall receive all insurance proceeds payable for the hazard or casualty
loss to finance the reconstruction. However, if the Premises or improvements are not rebuilt
or restored in the timeframe approved by Lessor, then all insurance money received or
recoverable on the policies of insurance to be obtained by Lessee shall belong to, and be paid
to, Lessor as liquidated damages by reason of the failure of Lessee to rebuild or restore the
Premises. If this Lease agreement is forfeited for any reason, then all policies of insurance and
all insurance money due, or to become due, at the time of the forfeiture shall belong to Lessor,
free and clear of any claim or interest on or to such money on the part of Lessee or anyone
claiming through or under Lessee. Nothing in this paragraph shall be construed as in any
manner releasing Lessee from any obligation to restore or construct the Premises or
improvements as provided in this Lease agreement, nor as a waiver of the rights of Lessor to
insist on the full performance by Lessee of the terms and conditions in this Lease agreement,
even if the insurance proceeds are not sufficient to fully pay for the restoration or repair.
l.Failure of Lessee to Obtain Insurance. If Lessee at any time fails to insure or keep insured
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the Premises or its improvements as required herein, then Lessor may procure or renew such
insurance policies, and the costs must be repaid by Lessee with the next rent payments under
this Lease, with interest at the rate of 2% per annum in excess of the prime rate charged by a
principal bank in Chicago, Illinois, to its commercial borrowers, as determined on the first date
of a delinquency until the same is paid by Lessee.
m. Self-Insurance. If Lessee is a self-insurer, then Lessee, prior to entering upon the Premises,
shall prepare and transmit to Lessor an acknowledged statement that Lessee is a self-insurer,
and that it undertakes and promises to insure the District, its Commissioners, officers, agents,
servants and employees, as an additional insured as required by the Lease. The statement
must be signed by such officer or agent of Lessee having sufficient knowledge of the fiscal
structure and financial status of Lessee to verify that Lessee has the funds available to meet
the insurance requirements set forth herein. This statement is subject to Lessor’s review and
approval.
ARTICLE 4. LESSEE RIGHTS AND RESPONSIBILITIES
4.01. Lessee to Pay All Taxes, Assessments, and Fees. Lessee agrees to pay or cause to be
paid, on or before the penalty date, all real estate taxes, any other taxes on tangible property
assessments, water rates, utility charges, and any other governmental charges, general and special,
ordinary and extraordinary, unforeseen as well as foreseen, of any kind and nature whatsoever,
which are assessed, levied, confirmed, imposed or become a lien upon the Premises or the
improvements thereon. Lessee must provide proof of payment, where payment is required, to
Lessor upon request.
4.02. Repair or Rebuild after Damage/Destruction. If the Premises is damaged or destroyed
in whole or in part by fire or other casualty, or by Lessee’s want of ordinary care, Lessee shall be
responsible for promptly rebuilding or restoring the Premises in accordance with plans approved
by Lessor. Such rebuilding or restoration shall be at Lessee’s expense, and Lessee shall remain
liable for any rent under this Lease agreement during the rebuilding or restoration of the Premises.
4.03. Compliance with Laws. Lessee shall not use the Premises for any purpose in violation
of any federal, state, or local law, or any regulation, order, or directive of a governmental agency,
as such statutes, ordinances, regulations, orders, or directives that now exist or may in the future
provide, concerning the use and safety of the Premises. Lessee shall obtain and maintain during
the lease term all licenses and permits required to conduct or operate its business on the premises
which are required by any applicable governmental body or agency having jurisdiction over the
Premises and shall pay the fee or charge imposed for issuance of any such license or permit.
4.04. Prohibited Uses. Lessee agrees not to use the Premises for any unlawful business or
activity. Lessee also agrees that no alcoholic beverages of any kind shall be sold, given away, or
consumed on the Premises, unless the following requirements are met: the Lease term is more than
20 years; Lessor’s Board of Commissioners has provided its consent to such use (consent shall not
be unreasonably delayed); and Lessee has procured dram shop insurance (or other applicable
insurance protection) with policy limits, form, and carrier approved by Lessor. The manufacture,
sale, distribution, discharge, and unauthorized use of guns and firearms on the Premises is expressly
prohibited, including any hunting activities.
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4.05. Condition of Premises. Lessee shall not maintain, commit, or permit any nuisance on
the Premises. Lessee agrees to keep the Premises (and any improvements thereon) in a clean and
sanitary condition, in accordance with all applicable laws, ordinances, and regulations. Lessee will
maintain any improvements in good order and repair (including all necessary replacement), and
will not allow the improvements to become damaged or diminished in value, ordinary wear and
tear excepted.
4.06. Waterway Strategy Resolution. If the Premises embraces or abuts a waterway regulated
by Lessor, or in which Lessor asserts property rights, Lessee shall, to the extent applicable, comply
with the District’s Waterway Strategy Resolution (attached as Exhibit C), the River Edge
Renaissance Plan, and the Revised Leasing Criteria for the North Shore Channel Right-of-Way
Lands of Lessor’s Board of Commissioners. Lessee is responsible for the construction and
maintenance of any docking facility at its own cost and expense, and Lessee must maintain and
stabilize the bank in an aesthetically pleasing condition. Permanent storage of bulk commodities,
unsightly materials, and/or debris on the waterway side of the scenic berm or the docking area is
prohibited. Lessee must, where possible, maintain a “natural” appearance along the waterway by
retaining existing vegetative cover. However, Lessor recognizes that site development will
sometimes necessitate the removal of existing vegetative cover. In those cases, Lessee must re-
establish vegetative cover in the same quantity and quality as that removed. The re-established
plant materials are to be considered as an addition to the landscaping required within the scenic
easement. Lessee must comply with all applicable local zoning and setback requirements. Lessor
reserves the right to traverse the Premises to access any waterway which abuts the Premises.
Lessee’s method of compliance with this paragraph is subject to the written approval of Lessor’s
Executive Director.
4.07. Public Service Promotional Signage. During the Lease term, Lessee shall install
and maintain, at its sole cost and expense, high-quality permanent signs that acknowledge the
cooperation and support of Lessor at one or more prominent locations on the Premises. The style,
text, and size of the sign(s) shall be approved by Lessor in advance. At a minimum, the signs
should state that: “THIS FACILITY IS PROVIDED IN PART AS A COMMUNITY SERVICE
WITH THE COOPERATION AND SUPPORT OF THE METROPOLITAN WATER
RECLAMATION DISTRICT OF GREATER CHICAGO.”
ARTICLE 5. LESSOR RIGHTS AND RESPONSIBILITIES
5.01. No Representations or Warranties. Lessor executes and delivers this Lease without
making any representations or warranties concerning: Lessor’s title to the Premises; the suitability
of the Premises for Lessee’s use; the size of the Premises or useable areas; or the building and
zoning laws that may affect the Premises or Lessee’s use thereof. Lessee acknowledges and agrees
that it has had the opportunity to examine title to the Premises and encumbrances (if any), Lessor’s
authority to execute this Lease, and all other matters relating to the size, useable areas, existing
improvements, and any zoning or building laws that may pertain to Lessee’s proposed use of the
Premises (including any proposed construction or improvements) and finds such matters to be
satisfactory. Lessee accepts the Premises and any improvements thereon “as-is” and “with all
faults.”
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5.02. Lessor Option to Terminate Based on Zoning/Building Laws. If at the commencement
of this Lease, or at any other time during the Lease term, the local zoning or building laws do not
permit Lessee’s use or improvements under this Lease, Lessee agrees, at its own expense, to make
diligent and good faith efforts to obtain any zoning changes, building permits, etc. that may be
needed within one year. If Lessee is unable to secure any such zoning changes or building permits
that may be necessary within that one-year period, despite Lessee’s diligent and good faith efforts,
then Lessor has the option to terminate this Lease, at its reasonable discretion. In the event of such
termination by Lessor, the rent owed by Lessee shall abate as of the date of termination by Lessor.
5.03. Lessor’s Remedies of Reentry and Collection of Rent. If the Premises is vacated or
abandoned, or in the event of a cancellation or termination of this Lease either by operation of law
or by the service of a notice of termination, Lessee shall, nevertheless, remain liable to Lessor in
a sum equal to all rent herein reserved for the balance of the term originally granted. Lessor may
reenter the Premises, using such force for that purpose as may be necessary without being liable
for said reentry or the use of such force, and Lessor may repair or alter the Premises in such manner
as Lessor may deem necessary or advisable, and/or let or relet the Premises or any or all parts
thereof for the whole or any part of the remainder of the original term or for a longer period, and,
out of any rent so collected or received, Lessor shall, first, pay to itself the expense and cost of
retaking, repossessing, repairing, and/or altering the Premises and the expense of removing all
persons and property therefrom; second, pay to itself any cost or expense sustained in securing any
new tenant or tenants; and, third, pay to itself any balance remaining on account of the liability of
the Lessee to Lessor for the sum equal to the rents reserved herein and then unpaid by Lessee for
the remainder of the original term. Any entry or reentry by Lessor shall not absolve or discharge
Lessee from liability hereunder.
5.04. Effect of Condemnation. All damages awarded for the taking or damaging of all or any
part of the Premises shall be the property of Lessor, with the exception of any improvements made
by Lessee during the Lease term. Nothing in this Lease shall be construed as precluding Lessee
from asserting any claim Lessee may have against the condemning authority for the reduced value
of this Lease or for the disruption or relocation of Lessee’s business. If the entire Premises is taken
by any condemning authority pursuant to the power of eminent domain, this Lease shall terminate
as of the date possession is taken by the public authority. If a substantial portion of the Premises
is taken pursuant to the power of eminent domain such that it is not economically feasible for
Lessee to continue this Lease, either party may terminate this Lease as of the date possession is
taken by the public authority. In the case of a partial taking where the Lease is not terminated, all
of the provisions of this Lease shall remain in full force and effect for the remaining Premises,
except that the rental payment shall be reduced proportionately to account for the part taken.
ARTICLE 6. ENGINEERING REQUIREMENTS AND RESERVATIONS
6.01. District Facilities and Infrastructure. Lessee agrees and acknowledges that Lessor may
have installed various wastewater treatment or stormwater management facilities and related
infrastructure (such as sewers, pipes, drains, dropshafts, parking areas, access drives, etc.) on,
under, or through the Premises. Lessor will cooperate with Lessee to ascertain, identify, and locate
Lessor’s existing facilities and infrastructure on the Premises, if any. Lessee must not damage or
interfere with District facilities or infrastructure at any time. Lessee is also responsible for taking
any steps necessary to protect its own property, equipment, and employees in the vicinity of
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District infrastructure. If Lessee constructs on or above District facilities or infrastructure, or
damages or interferes with District facilities or infrastructure, Lessee assumes the risk of any
resulting damage or loss to its property, equipment, or employees. In addition, Lessor reserves the
right to operate, maintain, repair, and reconstruct any such facilities, or infrastructure, and to use,
access, inspect, or survey any portion of the Premises for such purposes. Any such use or access
shall be carried out, at the discretion of the District’s Executive Director, in a manner that
minimizes any interference with Lessee’s use of the Premises.
6.02. District Corporate Use Reserve Area. For purposes of this Lease, the District’s
“Corporate Use Reserve Area” shall be defined as 1) the area delineated by a line parallel with,
and 250 feet distant from, the water’s edge of any waterway which traverses or is adjacent to the
Premises, and 2) all areas within the Premises below the lowest elevation of development thereon
as reflected in Lessee’s approved development plans for the Premises. Lessor, and anyone acting
under its authority, shall have the right to construct, operate, maintain, repair, renew, or relocate
any facilities or infrastructure for its corporate purposes (such as sewers, pipes, drains, dropshafts,
outfalls, power or communications lines, etc.) with necessary appurtenances thereto, on, under, or
through the Corporate Use Reserve Area. Any such use shall be carried out, at the discretion of the
District’s Executive Director, in a manner that minimizes any interference with Lessee’s use of the
Premises.
6.03. Other Easements and Infrastructure. Lessee agrees and acknowledges that this Lease
is subject to any and all other easements and infrastructure on, under, or through the Premises,
which may be owned or operated by other governmental entities, public utility companies,
corporations, or individuals. These easements and/or infrastructure may include pipelines, sewers,
cables, electrical transmission lines, or other surface or subsurface structures. Lessee shall, at its
own initiative, inquire and satisfy itself as to the presence or absence of all such easements or
infrastructure on or impacting the Premises, and Lessee hereby waives all claims which it might
otherwise have against Lessor due to the presence of any other easements and/or infrastructure that
are recorded, that would be shown upon an ALTA survey, or that are apparent from an inspection
of the premises, insofar as it may affect Lessee’s use and enjoyment of the Premises. Lessor may
also renew existing easements during the Lease term.
6.04. Lessor Review of Improvements. Lessee must submit detailed plans and specifications
for any proposed improvements (including any modifications to existing improvements) to be
made on the Premises before any construction commences. This includes the plans for handling
the sewerage, grading, and drainage of the Premises; any roadways, water supply, telephone, and
electric service; and the construction of any buildings. Any such plans and specifications will be
submitted to the District’s technical departments for review, and no work or construction may
commence until approval is obtained from the District’s Executive Director (or his designee) (such
approval shall not be unreasonably delayed). If any improvements are made without first obtaining
District approval, the District may require Lessee to remove or alter the improvements at Lessee’s
expense. The District may require a performance bond in connection with construction or
improvements on the Leasehold premises to ensure the project is completed.
6.05. Prohibited Construction/Improvements. The District reserves the right to prohibit any
proposed improvements on the Premises that may impact or damage District infrastructure; that
may impede reasonable access to, or operation and maintenance of, District infrastructure; or that
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may present potential impacts to the environment or public health and safety. If the Premises is
adjacent to a waterway, any blockage or restriction of flow in the waterway is prohibited. No
construction or improvements of any kind can project into the waterway, unless District approval
(and any other required permits) is obtained. The installation of new artificial turf or synthetic
grass on District real estate is prohibited. Commercial advertising signs/billboards are prohibited.
6.06. Wastewater and Stormwater Management Requirements. Lessee must submit to
Lessor for its review and approval the written plans for managing wastewater, stormwater, and
drainage on the Premises. Any proposed sewerage or stormwater management plans and related
improvements must comply with the District’s Watershed Management Ordinance (“WMO”) and
any other applicable ordinances, laws, or regulations pertaining to wastewater treatment and
stormwater management. Whenever possible, Lessee should employ best management practices,
such as green roofs, natural landscaping, filter strips, rain gardens, drainage swales, and naturalized
detention basins.
6.07. Relocation of Improvements. As set forth in the previous paragraphs, any
improvements on the Premises will be coordinated between Lessor and Lessee to avoid any
conflicts to the extent possible. However, the Lessee may be required to relocate or remove
improvements located on the Premises, at no cost to the District, in the following instances: if the
Premises is adjacent to a waterway and the removal or relocation is required to widen or otherwise
improve the waterway; if required by another governmental agency with appropriate jurisdiction;
or if the relocation or removal is required for the District’s corporate purposes, as set forth in this
Article 6.
6.08. Road or Highway Construction. If any portion of the Premises is required for the
construction of roads, highways, or adjuncts thereto, such as interchanges, ramps, or access roads,
as determined by the District’s Executive Director, for the use of any other governmental agency
engaged in the construction of roads and highways, then Lessee shall surrender possession of such
part of the Premises that may be so required. Lessee also agrees, at its own cost, to remove all of
its equipment, structures, or other works from those portions of the Premises so required.
6.09 Green Infrastructure Program. In accordance with the Consent Decree and the
District’s Comprehensive Land Use Policy, Lessee shall pay for and include green infrastructure
on its leasehold. A “Green Infrastructure Land-Use Policy Form for Public Leases” must be filled
out completely and signed by the authorized representatives of both Lessee and the District
concurrent with the signing of this Lease. The form, when completed and signed, shall be attached
hereto as Exhibit D.
The amount of green infrastructure to be provided shall be determined by the Design Retention
Capacity (“DRC”) as defined in the Comprehensive Land Use Policy. The District must approve
in writing all green infrastructure projects under this section before green infrastructure may count
towards satisfying the obligations created hereunder. Approval will be given at the District’s sole
discretion, which approval shall not be unreasonably delayed, in accordance with this Green
Infrastructure Program as required and defined in the Consent Decree and the District’s
Comprehensive Land Use Policy. Acceptable green infrastructure technologies include, but are
not limited to, rain gardens, native plants/landscaping, stormwater trees, porous/permeable
pavement, bio-swales, green roofs and greenways.
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Compliance with the minimum requirements of federal, state, or local law or regulation,
including the District’s ordinances, regulations, or policies (other than the green infrastructure
requirements under the District’s Comprehensive Land Use Policy) will NOT satisfy the green
infrastructure requirement that is to be provided under this section. Similarly, compliance with the
District’s Waterway Strategy and the District’s Watershed Management Ordinance (“WMO”) will
NOT count towards the green infrastructure that is to be provided herein. For purposes of this
section, the District’s ordinances, regulations, and policies, including the WMO, shall apply to all
District properties, whether located in Cook County (including the City of Chicago) or other
counties in the state of Illinois.
Lessee shall provide the District with an annual certification, due on each anniversary of the date
of this Lease, attesting that approved green infrastructure has been properly maintained. The
certification shall be made on a form prepared by the District. Failure to maintain approved green
infrastructure, whether pertaining to the Premises or locations off-site, throughout the term of this
Lease, or failure to properly and accurately certify to the maintenance of approved green
infrastructure, shall be grounds for termination of this Lease by the District. Similarly, providing
untrue or inaccurate information in the “Green Infrastructure Program” form shall likewise be
grounds for termination of this Lease by the District. The District reserves the right to inspect the
Premises throughout the duration of this Lease to verify approved green infrastructure has been
properly installed and maintained. The District further reserves the right to require Lessee to amend
its green infrastructure plan, even if previously approved by the District. Should such an
amendment or subsequent amendments be requested by the District, Lessee shall thereafter, within
a reasonable amount of time, install green infrastructure in conformity with the District’s
request(s).
Where possible, the Lessee is encouraged to design, implement, operate, and maintain green
infrastructure on other lands owned by Lessee, in lieu of, or in addition to, Lessee installing green
infrastructure on its leasehold with the District. Such offsite green infrastructure is subject to the
same retention standards enunciated above. The responsibility for ongoing maintenance and
operation shall be borne exclusively by Lessee and shall be a covenant running with the land where
the off-site green infrastructure is provided for the duration of the Lease.
6.10. Tree Mitigation. Lessee may conduct routine trimming of trees, brush, or other
overgrown vegetation or invasive species to the extent they interfere with safety or the proper
functioning of any improvements. However, Lessee may not remove any trees on District property
without the District’s review and approval. If trees must be removed for the safe and effective
operation, maintenance, or construction of facilities or improvements on the Premises, then Lessee
must provide notice to the District at least 21 days before Lessee performs any such proposed tree
removal work. The notice must include the number, location, and species of trees to be removed.
The notice must also include a plan to replace any trees removed with the same or greater number
and quality of trees on the Premises (or on other District property), subject to the District’s written
approval. Lessee is responsible for obtaining any local permits or approvals necessary for tree
removal work.
6.11. Construction Requirement. Intentionally Omitted.
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ARTICLE 7. DEFAULT PROVISIONS
7.01. Events of Default. The occurrence of any one or more of the following events (Event of
Default) will constitute a default and breach of this Lease by Lessee:
a.Monetary Default. If Lessee fails to pay any rent, additional compensation, or other
financial obligation required under this Lease in compliance with the provisions of the
Illinois Local Government Prompt Payment Act, 50 ILCS 505/1 et seq.
b.Nonmonetary Default. If Lessee fails to perform any of Lessee’s nonmonetary obligations
under this Lease for a period of 60 days after written notice from Lessor; provided,
however, that if more time is required to complete such performance, Lessee will not be
in default if Lessee commences such performance within the 60-day period and
thereafter diligently pursues its completion.
c.Violation of Assignment or Sublet Requirements. If Lessee, by operation of law or
otherwise, violates the provisions of Article 8 relating to assignment or sublease of the
Premises or in the income arising therefrom.
d.False or Misleading Representations. If Lessor discovers that any financial statement,
warranty, representation, or other information given to Lessor by Lessee (or by any
assignee, sublessee, or successor in interest of Lessee) in connection with this Lease was
materially false or misleading when made or furnished.
e.Environmental Default. If Lessee violates the provisions of Article 9 relating to
environmental compliance for a period of 30 days after written notice from Lessor, or such
shorter time period as is reasonable in the event of an emergency; provided, however, that
if more time is required to complete such performance, Lessee will not be in default if
Lessee commences such performance within the 30-day (or shorter, if applicable) period and
thereafter diligently pursues its completion. In addition, if any violation of Environmental
Laws, or Lessee’s liability for any Environmental Conditions on the Premises, has or may
be reasonably expected to have a material adverse effect on Lessee’s financial condition,
operations, operations, assets, business, properties, or its parent company, it shall constitute
a default.
f.Bankruptcy, Insolvency, Receivership, or Assignment for Benefit of Creditors. If
Lessee, or any successor or assignee of Lessee while in possession, shall file a petition in
bankruptcy or insolvency or for reorganization under any bankruptcy act, or shall
voluntarily take advantage of any such act by answer or otherwise, or shall make an
assignment for the benefit of creditors, or if a receiver is appointed.
7.02 Lessor’s Remedies. Upon the occurrence of an Event of Default by Lessee, and at any
time thereafter, with or without notice or demand and without limiting Lessor in the exercise of
any right or remedy that Lessor may have, Lessor will be entitled to the rights and remedies set
forth below.
a.Written Notice of Termination Required. In the event of default, Lessor may terminate
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this Lease. However, Lessor will not be deemed to have terminated this Lease, Lessee’s right
to possession of the leasehold, the liability of Lessee to pay rent thereafter to accrue, or
Lessee’s liability for damages under any of the provisions hereof, unless Lessor will have
notified Lessee in writing that it has so elected. Lessee covenants that the service by Lessor of
any notice pursuant to the applicable unlawful detainer statutes of Illinois, and Lessee’s
surrender of possession pursuant to such notice, will not (unless Lessor elects to the contrary
at the time of, or at any time subsequent to the service of, such notice, and such election be
evidenced by a written notice to Lessee) be deemed to be a termination of this Lease or of
Lessee’s right to possession thereof.
b. Termination of Possession. Lessor will have the right to terminate Lessee’s right to
possession of the Premises by any lawful means, and Lessee will immediately surrender
possession of the Premises to Lessor. In such event, Lessor will have the immediate right to reenter and
remove all persons and property, and such property may be removed and stored in a public warehouse
or elsewhere at Lessee’s cost, all without service of notice or resort to legal process and without being
deemed guilty of trespass, or becoming liable for any loss or damage that may be occasioned thereby. In
such event, Lessor will be entitled to recover from Lessee all damages incurred by Lessor due to
Lessee’s default.
c. Damages. At any time after an Event of Default and termination of this Lease, Lessor will
be entitled to recover from Lessee, and Lessee will pay to Lessor, on demand, as final damages
for Lessee’s default, an amount equal to the sum of the base rent, additional compensation, and
any other charges to be paid by Lessee hereunder for the unexpired portion of the Lease term
(assuming this Lease had not been so terminated). Lessor may, but need not, relet the premises
or any part thereof; however, if Lessor elects to relet the Premises, or any portion thereof, for
the unexpired term, or any part thereof, the amount of rent reserved upon such reletting will,
prima facie, be the fair and reasonable fair market rent for the part or the whole of the Premises
so relet during the term of the reletting. Nothing herein contained will limit or prejudice the
right of Lessor to prove and obtain, as damages by reason of such expiration or termination, an
amount equal to the maximum allowed by any statute or rule of law in effect at the time when,
and governing the proceedings in which, such damages are to be proved. Notwithstanding the
foregoing, the Parties acknowledge that the base rent in this Lease is only a nominal fee.
Additional compensation may arise in the future through lease amendments relating to other
sources of revenue, such as the sale and consumption of alcohol on the Premises.
d. Reentry and Removal. Upon the occurrence of an Event of Default by Lessee, Lessor will
also have the right, with or without terminating this Lease, to reenter the Premises to remove
all persons and property from the Premises. Such property may be removed and stored in a
public warehouse or elsewhere at Lessee’s cost. If Lessor elects to reenter the Premises, Lessor
will not be liable for damages due to such reentry.
e. No Termination; Recovery of Rent. If Lessor does not elect to terminate this Lease as
provided in this section, then Lessor may, from time to time, recover all rent as it becomes due
under this Lease. At any time thereafter, Lessor may elect to terminate this Lease and to recover
damages to which Lessor is entitled.
f.Reletting the Premises. In the event that Lessor should elect to terminate this Lease and to
relet the Premises, it may execute any new lease in its own name. Lessee hereunder will have
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no right or authority whatsoever to collect any rent from such other lease. Lessor shall have
the right, but shall not be required, to apply the rent received from reletting the premises to:
(i) First, to the payment of any indebtedness other than rent due hereunder from Lessee to
Lessor, including without limitation storage charges;
(ii) Second, to the payment of the costs and expenses of reletting the Premises, including
alterations and repairs that Lessor, in its sole discretion, deems reasonably necessary and
advisable, and reasonable attorneys’ fees, incurred by Lessor in connection with the retaking
of the Premises and such reletting;
(iii) Third, to the payment of rent and other charges due and unpaid hereunder; and
(iv) Fourth, to the payment of future rent and other damages payable by Lessee under this
Lease.
g. Waiver of Counterclaim. In the event Lessor commences any legal proceedings for non-
payment of rent or additional charges due Lessor under this Lease, forcible detainer, or
violation of any of the terms hereof, Lessee will not interpose any counterclaim or set off of
any nature or description in any such proceedings.
h. Remedies Cumulative; No Waiver. All rights, options, and remedies of Lessor contained
in this Lease will be construed and held to be cumulative, and no one of them will be exclusive
of the other. Lessor will have the right to pursue any one or all of such remedies or any other
remedy or relief that may be provided by law, whether or not stated in this Lease. No waiver
by Lessor of a breach of any of the terms, covenants, or conditions of this Lease by Lessee will
be construed as or held to be a waiver of any succeeding or preceding breach of the same or
any other term, covenant, or condition therein contained. No waiver of any default of Lessee
hereunder will be implied from any omission by Lessor to take any action on account of such
default if such default persists or is repeated, and no express waiver will affect default other
than as specified in such waiver. The consent or approval by Lessor to or of any act by Lessee
requiring Lessor’s consent or approval will not be deemed to waive or render unnecessary
Lessor’s consent to or approval of any subsequent similar acts by Lessee. Lessor has no
obligation to apply the security deposit on unpaid rent before default for failure to pay rent.
i. Legal Costs. Lessee will reimburse Lessor, upon demand, for any costs or expenses incurred
by Lessor in connection with any breach or default of Lessee under this Lease, regardless of
whether suit is commenced or judgment entered. Such costs will include, without limitation,
reasonable attorney’s fees, legal fees and costs incurred for the negotiation of a settlement,
enforcement of rights, collection of arrearage in rent, or otherwise.
j. Waiver of Damages for Reentry. To the extent that Lessor complies with all applicable
law, Lessee hereby waives all claims for damages that may be caused by Lessor’s reentering
and taking possession of the Premises or removing and storing the property of Lessee as
permitted under this Lease, and will save Lessor harmless from all losses, costs, or damages
occasioned by Lessor thereby. No such lawful reentry will be considered or construed to be a
forcible entry by Lessor.
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ARTICLE 8. ASSIGNMENT AND SUBLEASE
8.01. Assignment and Sublease. Lessee shall not sublet or assign any part of this Lease to any
other person or entity without the prior written consent of Lessor, which consent shall not be
unreasonably delayed. Unless required by law, this Lease shall not pass by operation of law to any
trustee in bankruptcy, a receiver in a receivership, or for the assignment for the benefit of creditors
of Lessee.
8.02. Notification. Lessee shall notify Lessor in writing at least sixty (60) days prior to any
proposed assignment or sublease. Lessee shall identify the name and address of the proposed
assignee/sublessee, and deliver to Lessor all supporting documentation that Lessor may deem
reasonably necessary to evaluate the assignee/sublessee’s ability to comply with the terms and
conditions of this Lease.
8.03. Approval of Assignment/Sublease. Lessor shall not unreasonably withhold consent to
a proposed assignment or sublease. However, the parties agree that reasonable grounds for
withholding consent include the following:
a. The proposed activity of the assignee/sublessee does not conform with the terms of this
Lease, or with policies established by Lessor.
b. The proposed assignee/sublessee does not have the financial resources to comply with the
requirements of the Lease, or the proposed assignee/sublessee does not have substantial
experience operating the site, facility, or business located on the leased Premises. Lessor may
require an additional security deposit from the assignee/sublessee as a condition of any consent.
c. Lessee (or the proposed assignee/sublessee) has existing violations under this Lease or
another lease of District property.
d. The activity of the proposed assignee/sublessee would interfere with or disturb neighboring
tenants or owners.
8.04. Additional Compensation from Assignment/Sublease. If Lessee assigns or sublets its
interest under this Lease and thereby receives a rental in excess of the rent paid to Lessor under
Article 2, then Lessee shall pay 50% of that excess rent so received to Lessor. Lessor may also
charge its standard document preparation fee for any approved assignments or subleases.
8.05. Unauthorized Assignment/Sublease. Any attempted sublease or assignment not in
compliance with this section shall be void and without force and effect. Additionally, Lessor shall
be entitled to 100% of all sublease fees received by Lessee under any unauthorized sublease.
ARTICLE 9. ENVIRONMENTAL REQUIREMENTS
9.01. Definitions.
a. “Environmental Law or Laws” shall mean any and all federal, state, or local laws,
regulations, ordinances, rules, orders, directions, requirements, or court decrees pertaining to
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health, industrial hygiene, or the environmental conditions on, under, or about the Premises,
including, without limitation, the Resource Conservation and Recovery Act (RCRA); the
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA); the
Toxic Substances Control Act; the Federal Water Pollution Control Act (Clean Water Act); the
Safe Drinking Water Act; the Clean Air Act; the Illinois Endangered Species Protection Act;
and all parallel, similar, or relevant laws pertaining to the environmental condition of the
Premises or activities conducted thereon, as those laws may be amended from time to time.
b. “Hazardous Materials” shall mean any substance (whether solid, liquid or gaseous in
nature), the presence of which (without regard to action level, concentration, or quantity
threshold) requires investigation or remediation under any Environmental Law, or which is
toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic, or
otherwise hazardous or dangerous, or which could cause or threaten to cause a nuisance upon
the Premises or to adjacent properties, or poses a hazardous threat to the health or safety of
persons on or about such properties. “Hazardous Materials” includes, but is not limited to,
“hazardous waste” as defined in RCRA; “hazardous substance” as defined in CERCLA;
petroleum or petroleum wastes/byproducts; and any other toxic or hazardous substances that
may be regulated from time to time by applicable Environmental Laws.
c. “Environmental Conditions” shall mean any spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, leaching, dumping, or disposing of Hazardous
Materials on, from, or about the Premises, other than in compliance with applicable
Environmental Laws.
d. “Environmental Costs” shall mean any and all judgments, damages, penalties, fines, costs,
liabilities, obligations, losses, or expenses of whatever kind and nature, including attorneys’
fees, consultants’ fees, and experts’ fees, arising from or incurred in connection with
Environmental Conditions, including but not limited to those relating to the presence,
investigation, or remediation of Hazardous Materials.
9.02. Compliance with Environmental Laws. Lessee (including Lessee’s employees,
contractors, agents, successors, or assigns), at its sole expense, shall comply at all times with all
Environmental Laws pertaining to the Premises or Lessee’s use of the Premises, and with all
directions of all public officers issued pursuant to any Environmental Law, which shall impose
any duty on the Lessee with respect to the use or occupancy of the Premises. Lessor may request
from Lessee at any time during the Lease term an operation and maintenance plan, monitoring
plan, emergency spill plan, or any other similar plan to ensure that Lessee is reasonably prepared
to respond to environmental issues that may occur on the Premises and to comply with all
applicable Environmental Laws.
9.03. Notifications.
a. Environmental Conditions or Claims. Lessee shall give immediate written notice to the
District of any Environmental Conditions or claims, including the following: (a) any
proceeding or inquiry by any governmental authority with respect to the presence of any
Hazardous Materials on the Premises or the migration thereof from or to other areas; (b) all
claims and potential claims made, inquired about, or threatened by any third party against
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Lessee or the Premises relating to any loss or injury resulting from any Hazardous Materials
or other Environmental Conditions; and (c) Lessee’s discovery of any occurrence or
Environmental Condition on any property adjoining or in the vicinity of the Premises that could
cause the Premises (or any part thereof) to be subject to any restrictions on its ownership,
occupancy, transferability, or use under any Environmental Law.
b. Release of Hazardous Materials. In the event of a release of Hazardous Materials or other
Environmental Condition discovered on the Premises, Lessee must notify any required
governmental agencies, as required by Environmental Laws. In addition, Lessee must notify
Lessor by telephone immediately after the release or discovery of the Environmental
Condition, to provide the following information, to the extent known: the identity of the
Hazardous Materials, the quantity thereof, and the cause(s) of the release. Lessee must provide
Lessor, within 72 hours of the event, copies of all written notices by Lessee, its parent and its
subsidiaries that are reported to government regulators or received from government regulators.
9.04. Representations and Warranties. Lessee represents, warrants, and covenants to and
with Lessor that: a) Lessee has the full right, power, and authority to carry out its environmental
obligations hereunder; b) Lessee is financially capable of performing and satisfying its
environmental obligations hereunder; c) Lessee is not now, and never has been, in violation of any
applicable Environmental Law relating to the Premises or its activities on the Premises, including
but not limited to any Environmental Law relating to the generation, handling, usage,
transportation, treatment, storage, or disposal of Hazardous Materials, nor is it subject to any
threatened, existing, or pending action by any governmental authority or any environmental liens;
and d) Lessee’s generation, handling, usage, transportation, treatment, storage, or disposal of
Hazardous Materials at the Premises (if any) shall at all times comply with applicable
Environmental Laws and will not cause or allow any Environmental Condition to occur or exist.
9.05. Prohibited Uses. Lessee shall only use the Premises for the uses authorized under this
Lease. Lessee is prohibited from using the Premises in any way which would impair the
environmental condition of the Premises, or that would cause or threaten to cause a public or
private nuisance. In addition, Lessee shall not construct, reconstruct, use, or operate any
underground storage tanks or related facilities without the express written permission of Lessor.
9.06. Inspections and Environmental Site Assessments.
a. Inspections. Lessor shall have the right, but not the duty, to inspect the Premises at any time
to determine whether Lessee is complying with the terms of this Lease, including the right to
perform any testing (surface, subsurface, groundwater, etc.) on the Premises that Lessor deems
necessary.
b. Periodic Environmental Site Assessments. Every ten years during the Lease term, Lessee
must conduct a Phase I Environmental Site Assessment (“ESA”) (as defined by ASTM
International) with respect to the Premises at its own expense. Lessor may waive this
requirement if there is current environmental information or reports available such that a Phase
I ESA is not needed, at Lessor’s sole discretion. The Phase I ESA must be provided to the
Lessor within 90 days after each tenth anniversary of the Lease commencement date. After
review of the Phase I ESA, Lessor may require Lessee to obtain a Phase II Environmental Site
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Assessment (as defined by ASTM International) with respect to the Premises. Prior to
commencing any Phase II ESA, the scope of work must be provided to Lessor for review and
approval. The written report of the Phase II ESA shall be submitted to Lessor within 120 days
of Lessor’s request for same, or within 30 days of the completion of the Phase II ESA,
whichever is later.
c. Other Environmental Site Assessments. Lessor may also require Lessee, at any time, to
obtain a Phase I or Phase II ESAs, at Lessor’s discretion, to ensure compliance with the
environmental requirements of this Lease. If Lessee fails to provide any required Phase I or
Phase II ESA to Lessor as provided for in this section, Lessor may obtain a Phase I or Phase II
ESA, at its discretion, and Lessee must reimburse Lessor for any associated costs.
9.07. Environmental Remediation. In the event of any release, emission, discharge, or
disposal of Hazardous Materials in, on, under, or about the Premises or improvements, or if any
inspection or environmental site assessment finds an Environmental Condition, or a violation of
an Environmental Law or this Lease, then Lessee must take remedial measures in accordance with
the recommendations of Lessee’s environmental engineers and/or consultants, and/or the
requirements of any governmental authority having jurisdiction over such matters. The remedial
measures taken must restore the Premises to a clean and sanitary condition that complies with all
applicable Environmental Laws. If Lessee fails to comply with the environmental requirements of
this Lease, then Lessor shall have the right, but not the duty, to enter upon the Premises to remedy,
at Lessee’s expense, any Environmental Conditions caused by Lessee’s failure to comply. Lessee
shall pay to Lessor all Environmental Costs incurred by Lessor in performing any such remedial
measures within 30 days after Lessor’s written request therefore. Lessor shall use reasonable
efforts to minimize interference with Lessee’s business operations, but Lessor shall not be liable
for any interference caused thereby.
9.08. Indemnification. Lessee (including its executors, administrators, successors, and
assigns), agrees to indemnify, defend, and hold harmless the District (including its Commissioners,
officers, agents, and employees), from and against any and all claims, losses, damages, suits or
actions, judgments, fines, penalties, or costs (including reasonable attorney’s fees) arising out of
any Environmental Conditions on the Premises, or arising out of Lessee’s violation of any
Environmental Laws, and Lessee shall pay all Environmental Costs in connection therewith.
Notwithstanding anything in this Lease to the contrary, Lessor agrees that Lessee shall not be
responsible for Environmental Conditions to the extent that such Environmental Conditions exist
as of the commencement date of the Lease, as documented in the baseline Phase I/II Environmental
Site Assessment dated XX, provided that these Environmental Conditions were not the result of
Lessee’s operations under a prior lease or occupancy of the Premises. Lessee’s indemnification of
Lessor shall extend to any migration of Hazardous Materials from the Premises to any other
properties. The foregoing indemnity shall also survive the end of the Lease term.
9.09. Restoration at End of Lease Term. At the end of the Lease term, whether by expiration
or termination for any other reason, Lessee is required to restore the Premises to the Tiered
Approach to Corrective Action Objectives (“TACO”) Tier I Residential Standards, as set forth in
the Illinois Administrative Code (35 Ill. Adm. Code Part 742), as may be amended from time to
time, (or to the baseline environmental condition established at the commencement of the Lease
term, as documented in the baseline Phase I/Phase II Environmental Site Assessment dated XX, if
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applicable). Lessor may require a No Further Remediation (“NFR”) letter from the Illinois
Environmental Protection Agency (“IEPA”) to demonstrate compliance with this provision.
During the final year of the Lease term, Lessee must prepare a Phase I ESA that demonstrates the
Premises meets this standard, and that the Premises is otherwise in compliance with all applicable
Environmental Laws. After review of the Phase I ESA, Lessor may request one or more Phase II
ESAs to ensure compliance with this section. Prior to commencing any Phase II ESA, the scope
of work must be provided to Lessor for review and approval. Based on Lessor’s review of the
environmental assessments, it may request Lessee to address specific environmental issues or
conditions as part of its Site Vacation Plan (see Section 10). Lessor’s Executive Director has the
sole discretion to determine which TACO Tier I objectives and measures are appropriate based on
site-specific conditions and Lessor’s remediation goals for use of the Premises after expiration of
the Lease term. Lessee’s responsibility to restore and remediate the Premises applies to any
contamination that may have migrated from adjacent properties, but Lessee may seek recovery
from any responsible third parties.
9.10. Survival. The environmental requirements set forth in this article shall survive the
expiration or termination of the Lease.
9.11. Compliance with this Article. Lessee shall cause its, contractors, subcontractors,
employees, and agents to comply with all applicable Environmental Laws and this Article 9 at all
times, and to provide such information that Lessor may reasonably request from time to time to
determine compliance.
ARTICLE 10. SITE VACATION AND RESTORATION
10.01. Lessee to Yield Premises Upon Lease Expiration. At the end of the Lease term, by
expiration, termination, or otherwise, and provided the Parties have not agreed to a new Lease
agreement or extension of the current Lease, Lessee agrees to yield up the Premises, together with
any buildings or improvements, to Lessor in as good condition as when said buildings or
improvements were constructed or placed thereon, ordinary wear and tear excepted. The process
for yielding up and vacating the Premises is the following:
a. Site Vacation Plan. At least one year prior to the expiration of this Lease, Lessee must
provide a Site Vacation Plan (“Plan”) in writing for the District’s review and approval. The
Site Vacation Plan must include the following components:
i. Proposed timeframe to vacate the Premises, including all of Lessee’s personal property,
vehicles, equipment, etc.
ii. Proposed measures to secure the site, along with any buildings or structures, including
any utility disconnections, as appropriate.
iii. Proposed measures to restore the Premises to the required environmental condition (see
Article 9). This Plan must include the removal of any and all storage tanks from the
Premises, above or belowground, and to remove any and all asbestos from the Premises.
10.02. District Review and Approval. The Plan submitted by Lessee is subject to the
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District’s review and approval. As part of the review process, the District will inform Lessee
which, if any, improvements on the Premises shall be demolished, at Lessee’s sole cost and
expense. All remaining improvements not removed by Lessee within ninety (90) days of Lease
termination or expiration will become the sole property of Lessor, without any compensation owed
to Lessee. Lessor’s Executive Director must also approve the site restoration and/or remediation
components of the Plan to ensure compliance with Article 9 of this Lease. This requirement of
Lessee to demolish improvements as required by the District, and to restore and/or remediate the
site as required under this Lease, shall survive expiration or termination of this Lease. If, after
notice from Lessor, Lessee fails to demolish or remove the improvements in accordance with these
terms, or fails to restore and/or remediate the site, Lessor may undertake those actions and Lessee
will be required to pay all associated costs.
ARTICLE 11. MISCELLANEOUS
11.01. Notices. Any notice or demand to be given pursuant to this Lease must be in writing,
and must be sent by registered or certified mail, postage prepaid, to the other party at the following
address (or to other such address that either party may designate in writing):
Lessor:Metropolitan Water Reclamation District of Greater Chicago
100 E. Erie St.
Chicago, Illinois 60611
ATTN: Executive Director
With a copy to: [MWRD Attorney Name/Phone/Email Address]
Lessee: [NAME]
[ADDRESS]
[CITY/STATE/ZIP]
ATTN:
With a copy to: City of Evanston Law Department 909 Davis Street, Evanston, Illinois 60201
ATTN: Corporation Counsel
The mailing of a notice in accordance with this section shall be deemed sufficient for purposes of
this Lease and effective as of the date such notice is mailed.
11.02. Entire Agreement. No representations, statements, or warranties have induced the
making, execution, and delivery of this lease agreement by Lessee other than those expressed in
this lease agreement. This lease agreement embodies the entire understanding of the parties, and
there are no further or other agreements or understandings, written or oral, in effect between the
parties, relating to the subject matter of this lease agreement. This instrument may be amended or
modified only by an instrument of equal formality signed by the respective parties. The Parties
acknowledge that they have had an adequate opportunity to review every provision contained in
this Lease and to submit the same to legal counsel for review. The Parties agree that the rule of
construction that a contract be construed against the drafter, if any, shall not be applied in the
interpretation and construction of this Lease. The headings used in this Lease are inserted for the
convenience of the Parties and shall not affect the interpretation of the provisions contained herein.
Page 22 of 26
11.03. Governing Law. This Lease is governed by, and must be interpreted under, the laws of
the State of Illinois. This Lease shall be binding and inure to the benefit of the Parties’ successors
and assigns, and all of the conditions and covenants of this Lease shall run with the land during
the Lease term. Venue for any action arising out of this Lease shall be the state and federal courts
located in Cook County, Illinois.
11.04. Recording. After execution of this Lease, Lessor will record a Memorandum of Lease
with the recorder of deeds for the county in which the Premises is located. Lessee must reimburse
the District the county’s fee for such recording.
ARTICLE 12. OTHER SITE-SPECIFIC TERMS AND CONDITIONS
12.01. Banks of the North Shore Channel. Consistent with the MWRD’s Land Use Policy,
the Parties agree that the leasehold premises includes the banks of the North Shore Channel that
are adjacent to the premises, as described and depicted on Exhibit A. Accordingly, Lessee is
responsible for maintaining the banks in accordance with this Lease agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year
first above written.
METROPOLITAN WATER RECLAMATION DISTRICT OF GREATER CHICAGO
BY:
Marcelino Garcia, Chairman of Finance
ATTEST:
Jacqueline Torres, Clerk
SUBSCRIBED AND SWORN to before me this day of , 20 .
Notary Public
CITY OF EVANSTON
BY:
Name:Title:
ATTEST:
Title:Name:
SUBSCRIBED AND SWORN to before me this day of , 20 .
Page 23 of 26
Notary Public
APPROVED AS TO FORM AND LEGALITY:
Head Assistant Attorney
General Counsel
APPROVED:
Executive
Director RECEIVED:
Fee
Insurance
Bond N/A
Page 24 of 26
Exhibit A
List of Real Estate Tax PINs for Evanston Parks Lease
From the North (Green Bay Road) to the South (Main Street)
10-12-410-004-8002
10-12-414-007-0000
10-12-414-001-0000
10-12-414-002-0000
10-12-415-001-0000
10-12-415-008-0000
10-12-409-012-0000
10-12-413-001-0000
10-12-419-001-0000
10-12-419-007-0000
10-12-319-006-0000
10-12-319-007-0000
10-12-322-002-0000
10-12-322-003-0000
10-13-103-001-0000
10-13-103-004-0000
10-12-321-026-0000
10-13-102-011-0000
10-13-102-008-0000
10-13-102-009-0000
10-13-106-001-0000
10-14-205-016-0000
10-14-227-011-0000
10-13-111-001-0000
10-14-227-013-0000
10-14-227-015-0000
10-14-227-009-0000
10-23-206-015-0000
10-23-206-007-0000
10-23-206-010-0000
Page 25 of 26
2.09F2.09E
2.09D
2.09C
2.09B
2.09A
2.11
2.10
3.02
3.01
3.03
3.04
2.12
2.13
4.01
DO
D
G
E
A
V
E
GR
E
E
N
B
A
Y
R
D
EXHIBIT B - EVANSTON PARK LEASE PROPERTIES
SCALE: 1"= 1,000'
NORTH
Mc
C
O
R
M
I
C
K
B
L
V
D
EMERSON ST
CHURCH ST
DEMPSTER ST
MAIN ST
Page 26 of 26