SB Friedman, as part of a team, conducted a joint development analysis for a multi-modal ground transportation center adjacent to the Chicago Transit Authority (CTA) Blue Line station in Rosemont, Illinois.
The goal of the project is to develop a signature transit-oriented development hub that includes an improved intermodal transportation center and a mix of private uses. The project has required coordination among multiple public agencies including the Village of Rosemont, RTA, Pace, Illinois Tollway, IDOT and the County to identify potential development scenarios for an 11-acre site that currently functions as surface parking for the CTA station and a PACE bus terminal.
Our scope of work for this phase included: 1) completing a market analysis to develop plausible development scenarios for the site, and 2) assessing the extent of value capture financing that could be derived from the private development program to be used towards construction of the transportation center.
We first determined the market feasibility of office, retail and hotel uses on the site and the overall potential revenue generated by each land use. Based on stakeholder feedback, we then refined the analysis and establish three preferred development scenarios. We then tested each scenario to determine the highest and best use of the site, based on our value capture analysis. As part of the analysis, we assessed parking revenues, ground and air rights leasing, tax increment financing, special service area and business district taxes, and other local financing tools. We also explored the ability to leverage local funds with grants and loans available through the Federal Transit Authority.
Results: SB Friedman presented the results of our market study to the stakeholder group, including Mayor Brad Stephens of Rosemont, in early April. We presented the results of our value capture analysis to the stakeholder group in late June. Future phases are anticipated to include developer outreach and solicitation efforts. The project is ongoing.
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