VILLAGE OF ROSELLE, IL
Review and Selection of Developers for Mixed-Use Town Center Site

S. B. Friedman & Company was engaged by the Village of Roselle to conduct a review of development proposals for a mixed-use town center site in its downtown and assist in negotiating the terms of the redevelopment agreement.

S. B. Friedman & Company was engaged by the Village of Roselle to conduct a review of development proposals for a mixed-use town center site in its downtown and assist in negotiating the terms of the redevelopment agreement.

Our analysis included a review of the background, experience, and financial capacity of each developer. In addition, we conducted a financial analysis to evaluate each project’s economic feasibility and determine how much of the land value the Village may be able to capture. The financial analysis included TIF projections, a review of development costs and sales income, returns on investment analysis, and probable financing gap/extraordinary costs. We assisted the Village in selecting a preferred developer, the Gammonley Group, for the project.

Once the preferred developer was selected, we assisted in reviewing and negotiating the terms of the redevelopment agreement between the Village and the developer. In particular, our firm played a key role in negotiating a profit sharing provision that will allow the Village to recover additional land value if the project performs better than expected. In addition, we helped structure the land conveyance from the Village to the developer so that the Village’s interest will be protected.

Results: The Village officially approved the Gammonley Group as the developer for the town center site, and the ground breaking occurred in spring of 2003. The development, which consists of approximately 20,000 square feet of retail space, 9,100 square feet of office space, and 48 residential condominium units, is largely completed.