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Council approves ground-lease amendment with OmniTrax to recognize existing month-to-month tenants
Summary
Blue Island approved a first amendment to a ground lease with Chicago Rail Link LLC/OmniTrax that formally acknowledges existing month-to-month tenant leases on city-owned land so OmniTrax can manage, renegotiate or continue those subleases as it develops the property.
The Blue Island City Council on Jan. 28 approved a first amendment to the ground lease between the city and Chicago Rail Link LLC (referred to in the meeting as OmniTrax). Staff explained the amendment recognizes existing month-to-month tenant leases on the property and clarifies that OmniTrax may negotiate new leases or continue existing month-to-month arrangements as part of its management responsibilities.
A staff presenter said the property has several existing tenants — landscaping and construction companies among them — with most arrangements effectively operating on month-to-month terms because prior documents had expired. The amendment is intended to acknowledge those rights so OmniTrax has time to contact tenants, negotiate new leases if they desire to remain, or otherwise manage turnover without the city assuming direct property-management duties.
Council members asked whether OmniTrax had requested the amendment; staff said it arose from the 60-day discovery process included in the original lease negotiation. The presenter also said monthly rents from those tenants were comparatively low (one example cited in the meeting was $600 per month for the highest rent among the small tenants), and that the amended ground lease would put property management and lease renegotiation responsibilities with OmniTrax.
Council approved the amendment by roll call. Staff said the amendment provides more time and clearer expectations for existing tenants and for OmniTrax as the private manager of the site.
