Client: Village of Schiller Park (IL)
The Village of Schiller Park previously established a tax increment finance district for an approximately 26-acre area bounded by Irving Park Road to the north, Mannheim Road to the west, Belle Plaine Avenue to the south and Interstate 294 to the east. The redevelopment area adjoins the south cargo entrance to O’Hare International Airport. The Village had previously retained a planning firm and other consultants to prepare a plan for the area and had entered into an agreement with a developer to execute the plan. The plan was not executed and the Village was facing the prospect of bond payments coming due without sufficient increment from the tax increment finance district to meet the debt obligations.
The Village of Schiller Park retained GG+A to evaluate the situation and create a viable plan for the redevelopment of the West Gateway Area. GG+A conducted studies of the demand for office, industrial, hotel, retail and restaurant uses. Estimates of the demand for these land uses were made along with estimates of obtainable rents and absorption by type of space. GG+A evaluated the real estate economics and feasibility of alternative land use development options for the West Gateway Area. GG+A estimated the fiscal impacts of the options and prepared a sources and uses model to assist with the financial planning and fiscal monitoring of the tax increment finance district.
After creating a conceptual redevelopment plan for the West Gateway Area, GG+A developed a solicitation program, including marketing disposition strategy, for the approximately 13 acres of land owned by the Village. GG+A developed the solicitation brochure, press releases and other marketing materials and marketed the property through “bidder conferences” and meetings and tours with developers. GG+A led the evaluation of the proposals and negotiations. A GG+A principal who is also a lawyer assisted the Village’s legal counsel with the preparation of the purchase and sale agreement, and took primary responsibility for preparing a “profit participation agreement” with the selected office/air cargo developer, a publicly-traded Real Estate Investment Trust. As the result of the financial crises and Great Recession, the selected industrial developer did not go forward with the development. GG+A remarketed the site, evaluated multiple proposals and subsequently recommended the selection and negotiated an agreement for the development of a state-of-the art off airport parking garage. The parking facility is under construction. GG+A led the successful negotiations for a convenience retail/gasoline station development including food uses on an out parcel.
An intergovernmental agreement with the City of Chicago covering adjoining property owned by the City of Chicago but within the jurisdiction of Schiller Park will result in an additional approximately 13 acres of land being made available for redevelopment consistent with the civic objectives of Schiller Park and plan of redevelopment for the West Gateway Area. GG+A provided analytical and negotiation support to the Village throughout the process.