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Market and Financial Evaluation of Development Proposals and Transaction Advisory Implementation Services for West Village Center
Client: Village of Wilmette, Illinois
dashed line separator The Village of Wilmette retained Gruen Gruen + Associates (GG+A) to review and evaluate developer proposals for Village-owned land in its West Village Center. The developer evaluation was directed toward identifying a preferred developer which would have the capacity to implement the development program likely to be sustainable over the long run and create spill over benefits to adjoining properties, while generating the highest, most certain return to the Village for its land stewardship.

To identify the selected developer, GG+A performed an evaluation of the nine proposals related to the following: 1) the financial capability and related qualifications to undertake the property acquisition, development/redevelopment, leasing or sales of space, and operation of the project; 2) intended uses and market and other justification or rationale for the intended uses; 3) schedule of performance; 4) conformity with local planning criteria; 5) identifiable risks; 6) proposed business terms and other conditions including profit participation. In addition GG+A performed its own market and economic feasibility analysis to determine the residual land value generated by each development proposal and to evaluate the reasonableness of the assumptions pro forma projections, and proposed terms and potential returns to the developers and fiscal benefits to the Village . As part of the due diligence, GG+A prepared questions and information to be provided by the developers and conducted in-person and telephone interviews with the proposers and prepared summaries and analyses of the results of the discussions.

GG+A prepared multiple reports and analyses throughout the process summarizing its evaluation of the proposals/developers including real estate economic analyses of development alternatives. GG+A assisted in the negotiations and selection of the preferred developer and development program that resulted in substantially improved terms and conditions to the Village. GG+A principals met throughout the process with senior Village staff and the Village Board to inform and gain consensus for the strategies utilized in the evaluation, negotiation ,and selection process and on the ultimate selection decision. M&R Development was selected as the developer of 611 Green Bay Road for which it has agreed to pay $3.1 million for just under an acre of land to build a 75-unit apartment project with first-floor commercial space. Prior to GG+As involvement, developers had proposed obtaining the land at no cost plus Village subsidies.

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