Title/Name/Summary
Palos Community Hospital - Land Exchange Agreement
History
On March 23, 2016, the Village of Orland Park (VOP) and Palos Community Hospital (PCH) entered into a Memorandum of Understanding (MOU) regarding the preservation of the existing fitness center, including a possible land exchange between the parties. Both parties have worked together to identify a workable redevelopment plan that would meet the long term goals of both organizations. The attached Land Exchange Agreement is the finalization of these negotiations. A summary of the key deal terms includes the following:
PCH will deed the existing fitness center to the VOP, which encompasses approximately 8.5 acres.
VOP will deed existing vacant land (west of the PCH property) to PCH, which encompasses approximately 6.4 acres.
VOP will be responsible for the mitigation of all wetlands.
VOP will give right of first refusal to PCH, in the future event that the fitness center is sold.
VOP will waive exaction, water tap, and tree mitigation fees.
PCH will pay building permit fees.
VOP will grant a 20 year lease for use of a water tower for PCH's communication needs, with staggered lease payments. PCH will bear the cost of any structural analysis and installation/maintenance of their eqipment.
-Year 1-5: no rent
-Year 6-10: 25% of the VOP's rental charge set by code
-Year 11-15: 50% of the VOP's rental charge set by code
-Year 16-20: 75% of the VOP's rental charge set by code
The transfer of the fitness center will occur on January 2, 2017. VOP will be responsible for any and all unanticipated, unbudgeted capital maintenance/improvement costs related to the center, beginning October 1, 2016. Additionally, property taxes will become the responsibility of the VOP, after September 30, 2016.
PCH will lease Physical Therapy Occupational Therapy and Rehabilitative space (4,500 sq. ft.) from the VOP within the fitness center. The term will be for 5 years at a monthly rate of $3,937.50. Early termination of the lease is permitted after the second year.
VOP will be responsible for the reconstruction of the fitness center parking lot and construction of a new public access drive to the South (from West Avenue) of the fitness center.
Financial Impact
Revenue generated during the two year minimum lease term for the Physical Therapy Occuparttional Therapy and Rehabilitative space amounts to approximately $94,500. Revenue generated from the twenty year tower lease amounts to a minimum of approximately $304,000. The total anticipated Village cash outlay for underground detention, parking lot reconfiguration and wetlands mitigation amounts to approximately $1.67 million.
Recommended Action/Motion
I move to approve the Land Exchange Agreement between St. George Corporation, St. George Wellness Center and Palos Community Hospital, each an Illinois not-for-profit corporation and the Village of Orland Park, Cook and Will Counties, Illinois, an Illinois home rule municipal corporation.