We regretfully have suspended all our activities in association with this development. When the Village took precipitous action against us by passing an ordinance allowing the Village President to purchase the property by eminent domain then, our otherwise well-advanced development program and financing plan was forced out by the uncertainty of ownership. We were otherwise ready, willing, able and capable to develop the subject property.
We thank the residents for their support during our process.
UP TO 85% Loan-to-Cost Debt Financing An elegant development program including a multi-level public economic incentive package, we applied our experience in structured finance paying particular attention to the success achieved with both Glen Town Center and Sherman Plaza, both of which included mission critical public-private financing.
We designed a menu of multiple redundant potential solutions designed to ensure deliverability while minimizing the economic incentive burden to the local taxpayers. Our proposal would have minimized the local taxpayer burden by leveraging the in-place U.S. Federal construction to permanent financing program legislated for this very situation. This structure designed to deliver the lowest weighted average cost of capital, thereby minimizing the amount of any TIF needed, includes:
Eliminating refinance risk by including a 40-year fixed-rate self-amortizing permanent loan in the upfront structure
Debt Capital up to 85% of project cost ("LTC") minimizing the return-on-equity cost, essentially a fixed cost in any TIF supported development.
Minimizing outside cash equity investment by:
Maximizing equity credit from lender of underwritten land value in excess of land cost (i.e., potential land lift)
Crediting a portion of a calculated 10% "Builder's Profit, (BSPRA) " towards the equity requirement
Strategies for addressing immediate site remediation requirements
JV/Credit enhancement partners with combined over 75 years of experience in asset classes specific to the project, over $250 million of public-private investment, and credit pre-approval for debt financing.
Our structure not only maximized liquidity for the project through redundancy and provided surety of execution but also allowed us to continually seek alternative creative solutions including pre-ales, condominium conversion, vertical subdivisions, crypto-currency, alternative non-redundant sources and more, all with a deliverable funding mechanism backstop.
This potential redevelopment of an 8.5 acre blighted site located in Lincolnwood, Illinois, was derailed when the Village took precipitous action against the developer by passing an ordinance allowing the Village President to purchase the property by eminent domain.
Successfully forced out by the uncertainty of property ownership, the Village immediately took action to remove these threats for the subsequent purchaser. The resulting development approval did not make use of this U.S. Federal financing program.
