Development Advisory Services: Designation, Deal Structuring and Review

The Village of Buffalo Grove engaged SB Friedman to support the Village’s designation of a TIF district and to assist the Village in reviewing, underwriting and structuring a public financial assistance package to support a 20-acre, mixed-use redevelopment project known as The Clove.

The Village of Buffalo Grove (the “Village”) completed a market study and plan for the Lake Cook Corridor in 2018, which identified goals of facilitating a more pedestrian-friendly, mixed-use environment throughout the corridor, particularly around the Town Center shopping center. The corridor serves as a key focal point for the Village and has long been a prime redevelopment target. To help fund this ambitious and transformational redevelopment, the Village sought to create a Tax Increment Financing (TIF) district that included the Town Center area.

SB Friedman conducted a TIF Eligibility Study for the Lake Cook Road TIF District Redevelopment Project Area (RPA), which was approved by the Village in July of 2020. We found that the area qualified as a “blighted area” for both vacant and improved land under the criteria outlined in the Illinois Tax Increment Allocation Redevelopment Act.

Upon approval with the TIF District, SB Friedman worked the Developer and Village staff to structure a redevelopment agreement to support redevelopment of a portion of the TIF district, on the site of the Town Center shopping center. The Clove, a $150 million mixed-use project, will help achieve the Village’s vision for redevelopment of the corridor. SB Friedman evaluated the project’s need for TIF and sales tax sharing assistance and assisted in financial structuring and developer negotiations.

Results: SB Friedman finalized the Eligibility Study and Plan in March 2020 and the Village Board approved the TIF district in July 2020. On June 20, 2022, Buffalo Grove’s Village Board approved the redevelopment agreement for The Clove.

 

Image Source: Kensington Development Partners