An operating waste transfer and recycling center was to be acquired as part of the property needed for the O’Hare expansion.
The City of Chicago sought to acquire a waste transfer and recycling center on the north side of O’Hare International Airport in Des Plaines, Illinois. The industrial parcel was improved with, and was permitted for, a waste transfer and recycling center. The offer by the City of Chicago was essentially for a typical industrial building in Des Plaines.
Considerable research and analysis was done in regard to the value of the property with the entitlements due to its use as a waste transfer and recycling center. MaRous & Company found that none of the properties in the surrounding area allowed this quite profitable and very desirable use. Market analysis and developing an income capitalization approach for the waste transfer and recycling use supported a significantly higher value than the initial offer by the City of Chicago.
Based on consideration of the value established by the entitlements and the economic desirability of the use, the parties settled for an amount that was more than seven times the original offer.