Title
AUTHORIZATION TO ENTER INTO AN AMENDMENT TO THE DUSABLE PARK AGREEMENT AND TO TAKE OTHER ACTIONS REGARDING THE CONSTRUCTION OF DUSABLE PARK
Body
To: The Honorable Board of Commissioners of the Chicago Park District
I. Recommendation
The Director of Planning and Development recommends, notwithstanding the lack of Economic Disclosure Statements (“EDSs”), that the Board of Commissioners (the “Board”) of the Chicago Park District (the “Park District”): (i) ratify that certain DuSable Park Agreement dated October 31, 2023 (the “Agreement”) among the Park District, RMW Acquisition Company LLC, a Delaware limited liability company, and Waterfront Park Builder LLC, an Illinois limited liability company, for the funding and management of the construction of DuSable (Jean Baptiste Pointe) Park at 401 N. Jean-Baptiste Pointe DuSable Lake Shore Drive (the “Park”); (ii) authorize the General Superintendent or their designee to enter into an amendment (the “Amendment”) to the Agreement; and (iii) authorize the expenditure of Park District funds for the construction of the Park.
II. Agreement Information; Authorization
Other Parties: RMW Acquisition Company LLC (“400 Owner”)
Waterfront Park Builder LLC (“WPB”)
400 Owner and WPB are both located at 350 W. Hubbard St., Ste. 300, Chicago, IL 60654
Company Type: 400 Owner is a Delaware limited liability company
WPB is an Illinois limited liability company
Agreement Term: The Park District has provided plans and is obtaining permits for the construction of the Park, which now means that the Agreement shall expire one year after the completion of the construction of the Park.
Agreement Amount: 400 Owner shall contribute not to exceed $10,000,000 for the construction of the Park. The Park District shall contribute the balance of funds for the construction of the Park, including $4,600,000 of Park District funds and not to exceed $5,000,000 of Open Space Impact Fee (“OSIF”) funds received from the City of Chicago (the “City”) pursuant to authorization by the Board on January 15, 2020 and an agreement with the City dated July 17, 2021.
Compliance
Goals: The Minority and Women Owned Business Enterprise participation under the Agreement is 26% MBE and 6% WBE.
Scope of Services: WPB will provide construction management services (including retaining the general contractor) pursuant to the Agreement.
Authorization: Ratify the Agreement, which shall not be subject to Chapter XI of the Code of the Chicago Park District (the “Code”). Authorize the General Counsel to include other relevant terms and conditions in the written Amendment. Authorize the General Superintendent or their designee to execute the Amendment and the Secretary to attest as to the signing of the Amendment and keep an original copy of the Amendment on file. Authorize the expenditure of Park District funds for the construction of the Park pursuant to the Agreement.
III. Budget and Financial Information
Budget Classification: Capital
Fiscal Year: 2026
Source of Funds: City of Chicago Open Space Impact Fees, In-kind Grant, and Bond Funds
IV. Procurement Information
Statement 11(m) of Residential-Business Planned Development No. 368 (as amended) (the “PD”) requires 400 Owner to enter into the Agreement in connection with its concurrent development of its property at 400 N. Jean-Baptiste Pointe DuSable Lake Shore Drive (the “400 LSD Project”). The Agreement is not a “construction contract” for purposes of the definition of such term in Chapter XI, Section A.3. of the Code.
V. Explanation
On June 17, 2020, the City Council of the City approved an amendment to the PD (the “PD Amendment”), which included the rights for 400 Owner (as “Applicant” for purposes of the PD Amendment) to build two residential towers on the property formerly known as the Spire site. The PD Amendment required that 400 Owner provide $10,000,000 towards the development of the Park and build the Park as part of a public benefit provided back to the community in exchange for various bonuses and improvements on 400 Owner’s property. The planned development was set up such that 400 Owner was required to deposit only $1,500,000 in escrow upon the beginning of its project and the remaining $8,500,000 at the end of its project. 400 Owner would also use the unimproved Park property to stage the construction of its first tower, and in return when the first tower was completed, would build the Park for the Park District. In addition, the City committed $5,000,000 million in Open Space Impact Fee funds in order for the Park District to begin design of the Park and work with the community on what they wanted the park to become.
In 2021, the Park District issued a Target Market Request for Proposals to solicit a design team to design the Park and begin working with the community on the design. In 2022, the Board approved the Joint Venture DuSable Park Design Alliance (DPDA) made up of lead firms Carol Ross Barney Architects and Brook Architecture, as the design team. Since 2022, DPDA and the Park District have been working with the community on the design of the Park. In October 2023, the Park District entered into a Park Agreement with Related Midwest with the understanding that the Park District did not yet have full designs nor the project bid and that some details would be left to a later date. Since 2023, the Park District, DPDA and 400 Owner have worked together to get the Park project to the point where construction can begin.
400 Owner, its affiliates and contractors are already mobilized on-site for its 400 LSD Project, so, in addition to securing 400 Owner’s $10,000,000 contribution to the construction of the Park, efficiencies should be realized by having WPB manage the construction of the Park pursuant to the Agreement. Since entering the Agreement in 2023 the Park District has come to the conclusion that the Agreement should be amended to reflect certain current and developing conditions. Therefore, it is in the best interest of the Park District to ratify the Agreement, enter into the Amendment, and expend Park District funds for the construction of the Park.
400 Owner and WPB have not submitted EDSs.
VI. General Conditions
1) Conflicts: No agreement shall be legally binding on the Chicago Park District if entered into in violation of the provisions of the Public Officer Prohibited Activities Act, 50 ILCS 105/0.01 et seq.
2) Ethics: The Amendment shall contain a provision requiring compliance with Chapter III of the Code (“Governmental Ethics”).
3) Contingent Liability: Any agreement lawfully entered into for a period of more than one year shall be executory only for the amounts for which the Park District may become liable in succeeding fiscal years pursuant to 70 ILCS 1505/17(i).
4) Economic Disclosure Statement: 400 Owner and WPB have not submitted EDSs prior to submission to the Board.