CITY OF ST. CHARLES, IL
Developer Solicitation and Negotiation Services for First Street in Downtown St. Charles 

S. B. Friedman & Company was engaged by the City of St. Charles to assist in soliciting and negotiating with a developer for the redevelopment of several blocks in the downtown. The redevelopment site consists of multiple parcels totaling approximately 7-acres located along First Street , just west of the Fox River in the First Street Tax Increment Financing (TIF) District.

In addition to preparing the TIF eligibility study and redevelopment plan for the area (which was adopted in June 2002), our scope included reviewing developer qualifications, assisting in the preparation of a short list of potential developers, completing a financial analysis of development proposals, and assisting the City in negotiating with the selected developer.

Results: First Street Developers LLC was selected as the developer for the project. SBFCo worked with the city to negotiate the terms of the redevelopment agreement. In addition, we have completed a detailed estimate of potential TIF increment and an overall budget for the use of TIF . Our review has included public and private costs, hard and soft construction costs, operating and sales assumptions, phasing schedule, developer returns, and overall need for financial assistance. The approval of the redevelopment agreement and issuance of general obligation TIF bonds took place at the end of 2006. A recent dedication ceremony marked the opening of the new Blue Goose Grocery Store.