title
PROPOSED MISCELLANEOUS ITEM OF BUSINESS
Department: Department of Real Estate Management
Summary: CHDG, the holder of the 99-year ground leases for the Old Cook County Hospital, currently maintains two separate ground leases: one with CHDG PHASE 1A1 (OFFICE) OWNER LLC for the office portion (currently sub-leased to CCH) and the other with CHDG PHASE 1A1 (HOTEL/RETAIL) OWNER LLC for the hotel and retail portion (currently sub-leased to the Hyatt Hotel and Bright Horizons Day Care, respectively). These ground leases, as part of the governing redevelopment agreement, were approved by the board on 5/11/2016 (16-2198).
The Department of Real Estate Management, on behalf of CHDG, is requesting approval to subdivide the existing hotel/retail ground lease into two independent ground leases. The purpose of this subdivision is to preemptively make the subdivided spaces more marketable to future investors, should CHDG exercise its option to vacate its interests in any or all of the leases it currently holds. This option is permitted under Article 10 of the 2016 Redevelopment Agreement, and in accordance with Paragraph 10.3., approval of the owner (Cook County) is required.
The proposed subdivision will not alter the total rent (revenue) paid to the County and is therefore budget- neutral. The Bureau of Asset Management is requesting Board approval to grant CHDG’s subdivision request, amend the CHDG PHASE 1A1 Owner LLC lease and create a ground lease with CHDG PHASE 1A1 Childcare LLC for the newly subdivided parcel.
Fiscal Impact: None - Budget Neutral (Leases will remain revenue generating at their existing rate(s) for Cook County)
Request: Approval to subdivide the parcel of land that Cook County currently leases to CHDG PHASE 1A1 (HOTEL/RETAIL) OWNER LLC, amend the lease, and create a new ground lease for the subdivided parcel with CHDG PHASE 1A1 CHILDCARE LLC.
end