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95-246 Resolution No. 95-246 RESOLUTION APPROVING FUNDS FOR THE AGREEMENT BETWEEN NEW CENTURY PARTNERSHIP FOR ELGIN AND URBAN DISCOVERY, INC. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that it hereby approves the payment of $14 ,000 to the New Century Partnership for Elgin for retention of consultant services with Urban Discovery, Inc. s/ Kevin Kelly Kevin Kelly, Mayor Presented: November 8, 1995 Adopted: November 8, 1995 Omnibus Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk AGREEMENT THIS AGREEMENT is made and entered into thisg4k day of IJOUC-(446e44, 19�9, by and between Urban Discovery,Inc.,consultant,hereinafter referred to as UDI,and the New Century Partnership for Elgin, an Illinois not-for-profit organization, hereinafter referred to as NCP. WHEREAS,NCP has elected to retain the services of UDI to complete market research and redevelopment implementation consulting services within a defined target area in Elgin, Illinois. NOW,THEREFORE,in consideration of the agreements and payments hereinafter mentioned, UDI and NCP hereby mutually agree as follows: ARTICLE 1-SCOPE OF SERVICES UDI is authorized by NCP to provide consulting services to complete Phase 1 as defined in the proposal in Attachment"A". UDI will not proceed with Phase 2 through 4 until authorized by the NCP in writing to proceed. ARTICLE 2-COMPENSATION Compensation for consulting services shall be a not-to-exceed fee for each phase as follows: Phase 1: Market Reconnaissance: $14,000 Phase 2: Physical Analysis of Target Area $27,000 Option (Facade Renderings) $8,000 to$15,000 Phase 3: Financial Evaluation/Project Proforma $ 7,000 Phase 4: Initiate Implementation Process (hourly) Total $63,000 UDI is authorized by the NCP to proceed with Phase 1 for a total fee of$14,000.00. The NCP reserves the right to terminate this contract at the completion of each phase for any reason. NCP shall be the owner of all work,reports and materials prepared by UDI under any and all phases of the work. A$5,000 retainer is required prior to commencement of the Market Reconnaissance. UDI will submit monthly progress billings for the percentage of work completed. The retainer will be applied to the billings. ARTICLE 3-INDEMNIFICATION UDI hereby agrees to hold and save NCP harmless from any and all claims,settlements,and judgments including all reasonable investigative fees,attorney's fees,suit and court costs for personal injury,property damage,and/or death arising out of the errors,omissions or negligent acts of UDI,or its agents,servants or employees in connection with services rendered under this agreement. NCP hereby agrees to hold and save UDI harmless from any and all claims, settlements and judgments including all reasonable investigative fees,attorney's fees,suit and court costs for personal injury,property damage,and/or death arising out of the errors,omissions or negligent acts of NCP,or its agents,servants or employees in connection with services rendered under this agreement. ARTICLE 4-SCHEDULE UDI's services for Phase 1 provided under this agreement shall commence on or about November 10,1995 and be completed by January 10,1996 assuming a signed agreement and retainer to commence the project is provided to UDI by November 8,1995. The New Century Partnership for Elgin,NCP and Urban Discovery,Inc.,UDI hereby execute this Agreement as of the day and year first above written. Thomas F. Weigand,President New Century Partnership for Elgin Urban Di very,Inc. An Illinois not-for-profit organization --- l Snl � Date: �/7/r. — Date: _N Attest:_ 1LL��i. ATTACHMENT A SCOPE OF SERVICES Market Reconnaissance UDI will evaluate market dynamics impacting the target area to determine viable redevelopment and rehabilitation alternatives. The evaluation will not be a full market target but rather a thorough reconnaissance of the market to determine current and projected future market forces. UDI will utilize available economic and socioeconomic data;however,greatest emphasis will be placed on the collection of qualitative market data using primary data collected from interviews and surveys. An outline of the tasks included in the Market Reconnaissance is provided below: A. Market Area Delineation for Target Area UDI shall determine the appropriate primary market areas for each respective redevelopment use(retail,office,multifamily residential). IT is likely the market area will vary for each respective use based upon housing,employment,and consumer trends. The market areas will be determined based upon interviews and available data. B. General Demographic and Socio-Economic Analysis Utilizing published demographic and socio-economic data,UDI shall prepare an evaluation of each market area. The demographic and socio-economic data will provide a general profile of each respective market and assist in the determination of viable uses for the target area. C. Comprehensive Interview Process UDI shall conduct a series 30 to 50 interviews with Iocal officials,business developers, owners,consumers,real estate professionals,multifamily housing managers,service providers,local planners,bankers,and other individuals actively involved in the economics of the market. The interviews shall provide significant insight into the present and future market opportunities for the target area. The interview process also provides the initial opportunity to identify prospective redevelopment opportunities and users. D. Mailed Survey Questionnaire UDI shall conduct a 1000 piece mailed survey questionnaire to active retailers and professional businesses in the respective market area to collect market information and access market opportunities. The survey questionnaire utilized by UDI is an effective tool to collect market data from a broad spectrum of businesses in a relatively short period of time. UDI commonly receives a 20 to 30 percent response rate on our surveys which is significantly higher than most mailed surveys. An example of some surveys recently utilized in the evaluation of a market for senior housing is included. The survey questionnaire also provides a marketing opportunity by asking businesses if they have an interest in locating in the target area. E. Comparable Property Analysis UDI shall conduct an inventory of comparable retail,office,and multifamily housing in the target area to evaluate the current market conditions. Such items as rent,physical condition of premises,vacancies,and similar attributes will be assessed. The comparable analysis provides important economic data to be utilized in the financial analysis of the target area. F. Market Findings Conclusions and recommendations will be provided in a Market Reconnaissance report based upon the data and information collected. The recommendations will provide a market direction which is favorable or best for the target area. Based upon the recommendations,specific redevelopment options can be identified and financially assessed by UDI and the consulting team. UDI will provide 10 copies of the Market Reconnaissance Report. UDI will meet with the task force to review the Market Reconnaissance Report. INTERNAL REVENUE ST RVIC•F. E a rRN OF THE TREASURY ±;�P.hRTN{r,tvT yr Trig, �rt_r.r,�J'R�' DISTRICT DIRECTOR 1100 COMMERCE STREET DALLAS, TX 75742 Employer Tdent if i cation Number: Date: JAN 0 9 1996 35-4055885 Number:Case 366 09002 NEW CENTURY PARTNERSHIP FOR V[IGTN Contact Person: C/O DEBORAH F NTER ADE ADRNIJ1 150 DEXTFE COURT Contact Telephone Number: - - r0" 414 8:-n ELGTN,V, .!_Li hl�l_%O ` _ ?9<?-O J07 Internal Revenue Code Section 501(c) (4) Accounting Period Ending: December 31 Form 990 Required: Yes Addendum Applies: no Dear Applicant: Based on information on supplied, and assuming your operations will be as stated in your application for recognition of exemption, we have determined you are exempt from Federal income tax under section 501(a) of the Internal ,; Revenue Code as an organiZ.ati(Jr1 described in the section indicated above. Unless specifically excepted, you are liable for taxes under the Federal Insurance Contributions Act (social security taxes) for each employee to whom you pay $100 or more during a calendar year, And, unless excepted, you are also liable for tax under the Federal Unemployment Tax Act for each employee to whom you pay $50 or more during a calendar quarter if, during the current. or preceding calendar year, you had one or more employees at any time in each of 20 calendar weeks or you paid wages of $1 ,500 or more in any calendar quarter. If you have any questions about excise, employment, or other Federal taxes, please address them to this office. If your sources of support, or your purposes, character, or method of operation change, please let us know so we can consider the effect of the change on your exempt. status, In the case of an amendment to your organiza- tional document or bylaws, please send us a copy of the amended document or bylaws. Also, you should inform us of all changes in your name or address. In the heading of this letter we have indicated whether you must file Form 990, Return of Organization Exempt From Income Tax. If Yes is indicated, you are required to file Form 990 only if your gross receipts each year are normally more than $25,000. However, if you receive a Form 990 package in the mail , please file the return even if you do not exceed the gross receipts test. If you are not required to file, simply attach the label provided, check the box in the heading to indicate that your annual gross receipts are normally $25,000 or less, and sign the return. If a return is required, it must be filed by the 15th day of the fifth month after the end of your annual accounting period. A penalty of $10 a day is charged when a return is filed late, unless there is reasonable cause for the delay, However, the maximum penalty charged cannot exceed $5,000 or 5 per- Letter 948 (DO/CG) NEW CENTURY PARTNERSHIP FOR ELGIN cent of your gross receipts for the year, whichever is less. This penalty may also be charged if a return is not complete, so please be sure your return is complete before you file it. You are not _required to file Federal income tax returns unless you are subject to the tax on unrelated business income under section 511 of the Code. If you are subject to this tax, you must file an income tax return on Form 990-T, Exempt Organization Business Income Tax Return. In this letter we are not determining whether any of your present or proposed activities are unre- lated trade or business as defined in section 513 of the Code. You need an employer identification number even if you have no employees. If an employer identification number was not entered on your application, a number will be assigned to you and you will be advised of it. Please use that number' on all returns you file and in all correspondence with the internal Revenue Service. Donors may not deduct contributions to you because you are not an organ- ization described in section 170(c) of the Code, Under section 6113, any fundraising solicitation you make must include an express statement (in a conspicuous and easily recognizable format) that contributions or (lifts to you are not deductible as charitable contributions for Federal income tax purposes. This provision does not apply, however, if your annual gross receipts are normally $100,000 or less, or if your solicitations are made to no more than ten persons during a calendar year. The law provides penalties for failure to comply with this requirement, unless failure is due to reasonable cause, If we have indicated in the heading of this letter that an addendum applies,es, the enclosed addendum is an integral part of this letter. Because this letter could help resolve any questions about your exempt status, you should keep it in your permanent records: If you have any questions, please contact the person whose name and telephone nl imber are shown in the heading of this letter: Sincerely yours, Bobby E. Scott District Director Letter 94F (DO/CG) DEPARTMENT OF THE TREASURY DATE OF THIS NOTICE: 01-11-96 INTERNAL REVENUE SERVICE NUMBER OF THIS NOTICE: CP 575 E KANSAS CITY MO 64999 EMPLOYER IDENTIFICATION NUMBER: 36-4055885 FORM: SS-4 0916506118 0 FOR ASSISTANCE CALL US AT: 1-800-829-1040 NEW CENTURY PARTNERSHIP FOR ELGIN DEBORAH K NIER 150 DEXTER CT ELGIN IL 60120 OR WRITE TO THE ADDRESS SHOWN AT THE TOP LEFT. IF YOU WRITE, ATTACH THE STUB OF THIS NOTICE. WE ASSIGNED YOU AN EMPLOYER IDENTIFICATION NUMBER (EIN) Thank you for your Form SS-4, Application for Employer Identification Number (EIN) . We assigned you EIN 36-4055885. This EIN will identify your business account, tax returns, and documents, even if you have no employees. Please keep this notice in your permanent records. Use your complete name and EIN shown above on all federal tax forms, payments, and related correspondence. If you use any variation in your name or EIN, it may cause a delay in processing, incorrect information in your account, or cause you to be assigned more than one EIN. If you want to receive a ruling or a determination letter recognizing your organization as tax exempt, you should file Form 1023/1024, Application for Recognition of Exemption, with your IRS Key District office. Publication 557, Tax Exempt Status for Your Organization, is available at most IRS offices and has details on how you can apply. Thank you for your cooperation. Keep this part for your records. CP 575 E (Rev. 1-95 Return this part with any correspondence so we may identify your account. Please CP 575 E correct any errors in your name or address. 0916506118 Your Telephone Number Best Time to Call DATE OF THIS NOTICE: 01-11-96 ( 70F ) 93/ J59v5 Q '�a Qm FORM:LOYERSIDENTIFICATION NUMBER: 36-4055885 o5Ooprn INTERNAL REVENUE SERVICE KANSAS CITY MO 64999 NEW CENTURY PARTNERSHIP FOR ELGIN DEBORAH K NIER 150 DEXTER CT ELGIN IL 60120 • n I- ,,r ;, Agenda Item No. le/ oR7f Ir110 October 18, 1995 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Request from New Century Partnership for Elgin to Fund a Market-driven Redevelopment Strategy for the South Grove Area PURPOSE The purpose of this memorandum is to present a request from the New Century Partnership for Elgin to fund a process where- by a market-driven redevelopment strategy for the South Grove Avenue area will be produced. BACKGROUND As part of its June 28, 1995 meeting with the Mayor and City Council, . the New Century Partnership for Elgin Board of Direc- tors presented, as one of its two priority projects, a propos- al for focusing of redevelopment on the South Grove Avenue area. The Board felt that with the restreeting of South Grove Avenue and the opening of the Grand Victoria Casino complex as a major southern anchor to South Grove, attention should be given to the area between the Fox River (west) , South Spring Street (east) , Chicago Street (north) and Lake Street (south) as deserving attention as a special target area for redevelopment. . To pursue this, the Board created a Task Force on South Grove Redevelopment composed of the following members : Michael Armato, Chairman (Olive Can Company) Judith Di Fulvio (YWCA) Allen Anderson (Ariano, Anderson, Bazos, Castillo) Frank Halsey (Downtown property owner) Bruce Trego (Chairman, Zoning and Subdivision Hearing Board) New Century Partnership Request October 18, 1995 Page 2 low It was the task of this group to become familiar with the target area and make recommendations on development strate- gies . As a_ result of the Task Force 's activities, the Board has agreed that the best next step would be to have developed a market-driven strategy for the redevelopment of the target area. The goal of this activity would not be to produce a "plan" for redevelopment, but a practical tool for use by the public and private sector. To this end, the Task Force recommended, and the Board con- curred, that a four-phase process should be undertaken to create an implementation strategy for redevelopment of the target area. The Task Force formed its recommendation by speaking to representatives from other communities involved in similar activities, target area business and • property owners and private developers in the metropolitan area. The result was a proposal of a strategy consisting of four parts : 1 . Market analysis of the area. 2 . Physical analysis of the area (buildings , other public and private property) . 3 . Financial evaluation, including financial pro- formas for each private building. 4 . Implementation. rft Critical to this process is that every phase entails a mar- ket-driven approach. Each analysis should address the ques- tion as to how to capture the market.. The products of the process should be a pro-forma for each business to utilize in evaluating needed property improvements and financing opportu- nities, both private and public. The financial evaluation should assist both public and private funding sources to recognize and justify their particular level of involvement. The Task Force interviewed firms capable of performing the desired analysis . Of those interviewed, Urban Discovery, Inc. of Madison, Wisconsin was favored by the Task Force to develop this strategy. The work team would consist of Urban Discovery, Inc. , Hitchcock Design Group, Naperville, Illinois and Design Organization, Inc. , Chicago, Illinois . The cost estimate for this project is. $48,000, including market recon- naissance, physical analysis, and financial evaluation ( in- cluding pro-formas) . An additional $8,000-$15,000 would pay for facade renderings illustrating recommended improvements, if desired. Assisting with the implementation process would be conducted at an hourly charge. The Task Force has recommended that Urban Discovery, Inc. be contracted to develop these redevelopment strategies at an amount not to exceed $70,000. Further, payment should be scheduled based on completion of each phase and that its continuance from one phase to the next be contingent upon approval by the Partnership Board. The New Century Partner- New Century Partnership Request October 18, 1995 Page 3 tek ship for Elgin Board of Directors accepted this recommenda- tion unanimously at its October 18, 1995 meeting. A project proposal and work samples from Urban Discovery, Inc. are provided as attachments. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED There have been discussions with some property owners in the proposed target area. FINANCIAL IMPACT It is being recommended that the City appropriate a sum of $70,000 for this project. Approximately $14 , 000 will be expended in 1995 for completion of Phase One, Market Recon- naissance. Funds are available from Account No. 275-0000-791 . 92-36 , 1995 Riverboat Funds . These funds were originally budgeted to cover remodeling expenses for the Children' s Discovery Museum at River Place. LEGAL IMPACT A budget amendment will be required. RECOMMENDATION New Century Partnership for Elgin requests authority from the City Council to negotiate and enter into a contract with Urban Discovery, Inc. for provision of services relative to the project described above. Further, the Partnership re- quests an amount not to exceed $70,000 to fund the project. Respectfully submitted, 401b/X eborah K. Nier, Director entury Partnership for Elgin Richard B. Heiwig City Manager amp • 'PROM 1M. P. RRMRTO OCC 1 706 466 7996 1996.10-16 16147 #036 P.02/12 u�r—scrim 1 .01 UuL/ZH1M1 MCW.Ur`4 r.OU ILMO):::1111 September 29,1995 Mr.Mike Amato,Chairman New CetuntyPanaaxihip 1 ,- e/o Olive Can Company • r. - 1111 Howes Road _ . ..u"Awnaurr 1lgin,.Illinois 60123 • RE: Elgin Downtown RiVedmnt Tatgat Profotma Dear Mr.Armetq: Thank you for the opportunity to submit a revised proposal bawd upon our recent mesdng and diseussioa with you and the mom Committee members in Rockford,Illinois. Urban Discovery. Inc..(UDI)in collaboration with Hitchcock Design Croup(IMO and Design Organiation.Inc (DO)has'monetized ma watch to psvvide a uaaairat driven strategy for redevelopment. AR of the tasks outlined in our proposal are designed to facilitate the successful implementation of targeted races for the target area. Essentially.we would engage is a"Process"rather thin a "Plan". veywroldwer Please call me with any lotions or comments concerning oar proposal at your earliest • corOrs.TII4C convenience- I wOl unfortunately be out of the°Mee between October 11 and October for a aau+rua►ae conference and other business related activities. However,I would be available to discuss the u►Nncfmexr proposal with you by phone during this paled. Think you again for the opportunity to offer the New Century Partnership our services m this elk challattlog_ Sincerely, . • Urban Discovery,Inc. e5C7 ff •": • • - F Wei P,residiot i . IX last Mang 51 - kite 210 metros.Wic rsio liras Ott 1514466 hydrae(sla)2514166 • • • FROM 'M. P. PRMRTO OCC 1 708 468 7998 1995.10-18 16:47 #038 P.03/12 \ • W iv £ ' iJ'JL VY,•••/r\,f\1 4'Vre f •G/L • AGREEMENT • • THIS AGREEMENT is made and entered into this day of - - 19E by and between Urban'Discovery,inc.,consultant,hereinafter referred to as I7DI,and the City of Elgin, hereinafter referred to as City. • WHEREAS,City has elected to retain the services of UDI to complete market research and redevelopment implementation consulting services within s defined target area in Elgin, Wisconsin. NOW,THEREFORE.,in consideration of the agreements and payments hereinafter mentioned, UDI and Cry hereby mutually agree as follows: AST 1• s'ere►SERECr4 UDI will provide consulting services to complete the phases as defined in the proposal in Attachmas,:"A". UDI will proceed with each phase upon authorization from City to d'i Comgexvatio• for consulting services shall be a not-to-exceed fee for each phase as follows: Phase 1: Market R. $14,000 Phase 2: Physical Analysis of Study Area $27,000 Option Faces Renderings) Mme in 515,000 Phase 3: Financial va]uatinnfProject Proforma $ 7,000 Phase 4: Initiate Implementation Process(hourly) Total 563,000 UDI shall complete each phase of the study hi sequential order prior to commencement of the next phase Mess multiple phases are authorized by the City. The City reserves the right to terminate this contract at the completion of each phase for any reason. A$5,000 retainer is required prior to coam>encemet. UDI will subm6t monthly progress billings for the percentage of work completed in each phase. • e FROM IM. P. PTO oCC 1 708 468 7998 1996.10-18 16:48 #038 P.04/12 b. w. �u 1�JJ 1�•JO UL l# HJ$.1 1Jk51L*4 P. rok i Ar[TI 3-Il\ifII.Q FICATrf q UDI hereby agrees In hold and save City harmless from any and all elates,sue,and judgments including all reasonable investigative fees,attorneys fees,suit and court cow for peraOnal injury,1perty damage,and/or death arising out of the errors,omissions or negligent acts of UDI,or its agents,servants or employees in connection with services rendered under this amt City hereby agrees to hold and save UDI harmless from any and all claims.settlements and judgments including all reasonable investigative fees,attorneys fees,suit and court costs for penvonal injury,property damage,and/or death arising out of the errors,omissions or negligent acts of City,or its agents,servants or employees in connection with services rendered under this agreement. • ASRUCLELSCHIRIZLE Mrs services for Phase 1 provided under this agreement shall commence on or about November• i1.1995 and be completed+ry January 10,19%assuming s signed agreement and retainer to commence the project is provided to UDI by November 3,1991 City of Elgin,City and Urban Discovery,Inc.,UDI hereby execute this Agreement as of the day and year twat above wtiben. Thomas F.Weigand Prssient Urban Discovery,Inc. City of Elgin,Illinois Date: Date: Attest:___ • • • • TOTAL P.03 FROM :M. P. FR1 TO OCC 1 708 468 7998 1995.10-18 15:48 #038 P.05/12 • 410 L...f91n1 LLJiVI . .w • ATTACHMENT A SCOPE OS SERVICES - i Phase F Market Seconnaissvoe UM will evaluate market dynamics impacting the target nos to determine viable redevelopment and rehabilitation alternatives. The swath will nol be a lull market target but rather a thorough reconnaissance of the mat#etso determine current and projected future marina forces. UDI will utilize available economic end socbx000mnic data;however,greatest emphasis wilt be placed on the collection • of goalleatfvc market data wing prirnwy data collected fate interviews and surveys. An outline of the tasks included in the Market Reconnaissance In provided below: A. Market Area Delineation far Target Ares 17Di shall determine the appropriate primary market areas for eachreipecdve redevelopment one(Xveil,&Bee,maldfamily residential). IT is likely the marks area will vary for each respective use based spar housing.ernpioytr ar,and vonewmar heeds- • The market areas wltl be determined based upon interviews and available data. 8. GaMrat Dem.graptlie and Sodo.Ecoeomk Atoll* Utlliziog ptbliihed demopapbic and socio-economic eta,UDI shall prgmre as evalueriat of each market area. The demographic*d socio-economic data will provide a gnat profile each receectivw market and assist in the dmennieation'of viable pact Sr the target area. C. C enprabewive lot rview Proem UDI shalt conduct a series 30 to 30 interviews with local officials,badness demiopetsy owners,censomcre,real estate professionals,multifamily bowing menagers,service provldeYs,j local planners,bankers,and other individuals actively involved in the ewaomic$of the market. Tic:interviews shall provide significant insight into the present and fuhar marker nppottuaities fru the target area. The interview process also provides the initial opportunity to identify prospeeave redevelopment opportunities and alas. D. Nailed Storey Qaetioaatine UDI shall conduct a 1000 piece mailed survey epestianneire to active retailers and ptofessioeal businesses in the reepeclive manes arca to called market information and mass market opportunities. The survey queaciotnahe utilized by UDI Is an effective Di to calker market data from a heed spectrum ofbushu set in a relatively court period of dma. LIDI commonly receives a 20 to 30 puma response rake on our surveys which is significantly higher than moat mailed surveys. An socample of same autveys recently utilized in the erahusioo of a mad=for senior housing is l aeludetd.. The sway questionnaire she Provides a maskarias oppornmky by a.*ing businesses if they have an barren is ranting to du target sta. • FROM :M. P. raRP TO OCC 1 708 468 7998 1995.10-18 15:48 #038 P.05/12 L. ..1 10-477a 4D-WW UMIeZMewe MMUI ev r.tem L Comparable Property Andy* • UDI shall casket an inventory of computable mull,office,and mn lifbmtly bowing to the target area to evaluate dic c anent mattet conditions. Such items as non.physical condition of premises,vacancies,and similar athletes will be Seemed. The • comparable analysis movides impotent economic data to be utilized is me ha olal analysis Of the ranger area. • P. Market Findings Conclusions mid recomineadatians will be provided is a Market Raeieao:sanee report based upon the data and information collected. The ttxvmioeredatita s will provide a • market direction which Is favorable or beat for the target stew_ limed upon the mconireendations,specific redevelopment almars can be identified and&msocialty mussed by unt and the=nuking teat_ UDI will provide 10 copies or the Midst • Reconnaissance Repeat UbI will meet with the task farce to review the Martian Recanaai ranee Report Pisses 2: Physical Analysis of Target area In cooperation with E itdreock Design Gimp(HIV)and Design Organization.Inc.(DO),UDI will conduct a physical evaluation of the target wen. The evaluation will assess the physical adaptability of the banding:in the target toot to capers the idend5sd market apporomitiee. (imams redevelopment coats for the rehabfitatIon of vats and public PrePeety in the target sea will be d tacninod to assess the overall chose*feas►lrility. rot A- Building Istepeetia°Rapers • UDI and DO will conduct a walk through inspeedon of each building in the target area to an the physical condition and prepare a general coat estimate range for dashed . • releabiliitatian lmlmvetneets based opal market 0adiip. A one to three page flummery of the physical ameminent and cost estimates will be provided for convenient distribution to prvpeny owners and prospective developers.. The intonation collected in the inspeciop will also allow for the preparation of&uncial pro Irma fir each btedding. • As ED option.DO can prepare either compare genermed or hand drawn facade renderings for each building illustrating recommended improvements. Such rstuleriaigs • g<eetly twist property owners is recognising their redevelopment opportunity and can be used to madras prospeetive busioesses to locate In the balding. B. Pub&Property w pp*Plan In addition to the private property In the tetget asst,UDI in cooperation with HDC will • mime;a comps to redevelopment sumo for public areas in the target area. !pacifically me riverboat The sebemasic drawing allowing recommended immvveatcots along with ptelimina y cost catmatr.s wilt be provided. The public Dropurly redevelopnient strategy would provide die bissiness mama and public Metals ' • with a visual perspective of the redevelopment opportunities is the target sea and also • assist in establishing the necessary wog streteeY for the pinjarw. • • • • • • FROM :M. P. ARMPTO OCC 1 708 468 7998 1995.10-18 15:49 #038 P.07/12 Ut.1-1U-1Wyb 15=11W UD1.SA1KI DESIGN P.06 Pease 3: Financial Evaluation • • UDI shall conduct a financial analysis of the target retain a manner similar to the approach • commonly taken by a private developer. The evaluation will esalat is the dctandnrion of required public monies to provide for a feasible rehabilitation and redevelopment of sec telpt are& A. Financial Pro Forsoa's for Redevelopment Opportanibks UDI shall prepare a financial profane for each private building in the target area based upon preliminary cost estimates and the desired improvements needed for prospective uses. The fitrancisl proformna will determine the Known of public monies,if any is required to assist the owars in proceeding with the recommended improvements. The pro focus will be prepared in an easy to endersla+nd format allowing all property owners to recognize their respective economic poteotiai and curesponding risks. UDI will prepare a similar pro forma for public improvement'recommended for the target awe. B. Financial Aesistaaoe Conclusions Based upon the collective financial analysis of the tamest area U1/I will make financial r000mmendadona for ianplemendng the improvements. Mai analysis will evaluate financial options such as TIP,low-Intaost loons,and altar Dating sources to pICktagc a financial strategy for the target area. The financial eancinaioac will provide guidance and justification for local elects on maters in approving public investments into the target area Phase 4: Initiate Implementation Proms UDI shall work as dealrod with the Committee end local officials so begin the impiemenwdtsi of the tedevelopene r process. This process may take several years to fully huplamenr_ A. Arrange Public Financing Assistants Arrange for the approval and provisions of public morass Si Assist in the redevelopment of the target arca. Stich public monies should be offered in a spec&program or programs to assure equitable distribution of!hods. B. Arrange Private FlnanciOg Ambiance Wade with local lending inatimtione to orange a competitive low-infant landing program for property owners in the target arm. C. Arrange Private Brokerage Serviette Anange to Interview and negotiate a listing agrecmeot for an established food commercial broker to recruit targeted tenants for the target tna. D. Provide Redevelopment Strategies to Order's Work closely with Wiling unmans to provide devslapment aasttaaece ie be tehsbdlkadoo and leasing of tam propahty. • • • yid • t I 1 100/ MIPS mu. Alowocroits m°crops UM/fahou la°1-41.0N Ian Ai Mon 26368.1 untleinsulaldial a331111 ism UOVL s InluVoid10~10PirerA3 :t Mott ir (0003It 01 00010:12%199PUOV a ast9d0 ailat gant WW1 P TOM',Mask! vg tam gootit 01011 amuspuoaagg mai/ amma WINIX11.31 V.1,300111. Nood tuna...len mm.r,r 0.CCT-cyr-t-In ; ET/80'd BERM 6 17:ST 8T-01'8861 8664 89t, 804 t 300 011:11.1dU 'd 'WI WOM4 1 ti Introduction: WI Urban Discovery, Inc. (UDI) is a comprehensive real estate company specializing in zo development, brokerage, consulting, property management, and construction Urban management services. The company's diverse experience in real estate allows for Discovery. � Inc. solution oriented real estate services versus the typical risk adverse approach. UDI FOCUSED U____THERAPY aimmasimol and our professional real estate affiliates have been involved in a variety of real estate projects ranging from industrial projects to multifamily housing. Although UDI focuses it's development and brokerage services in the Madison Metropolitan Area, the company has completed development projects in Illinois, and services clients throughout the Upper Midwest. Recent Accomplishments: • UDI recently developed and leased a $3 million commercial retail center in Galena, Illinois CD • • UDI recently completed a rehabilitation of an 1856 office building in .4•••4 w downtown Madison, Wisconsin. (i) • UDI has been responsible for the brokerage of approximately 170,000 square feet of retail, office, and industrial/warehouse space during the past year. • UDI has provided extensive residential real estate consulting services for over 7:::1 1,500 housing units during the past eight months. O 7 • UDI currently manages a variety of commercial real estate in Illinois and Wisconsin valued at over$3.5 million. imli • UDI is currently developing a 90-unit senior housing community in Moline, '- Illinois. • UDI has been retained as the listing broker for approximately 150,000 sq. ft. of 8 PP Y 79 Office/Distribution space in Dane county. 71 In addition to our independent real estate activities,UDI works in conjunction with H'iffman Shaffer Associates(HSA), a large commercial real estate development company from Chicago, Illinois. HSA has been involved in the development of approximately 25 million square feet of industrial, office, and retail space in the Chicago Metropolitan Area, and throughout the Country. HSA has selected UDI to took coordinate their future development activities in Wisconsin, and assist HSA in the 124 S.Pinckney sc brokerage of national retail tenants in the Madison market. Suite 200 Madison,WI 53703 (608)251-4466 . FAX(608)251-8866 a : : =- Thomas F. Weigand, President /AD ' Iii han • Dkcm er Fdncalk= Inc. " FOCUSED URBAN THERAPY M.S.,Urban and Regional Planning,University of Wisconsin -Madison B.A.,Geography and Urban Studies,Augustana College,Rock Island,Illinois I Experience: President,Urban Discovery,Inc.(UDI),Madison,Wisconsin I . Since forming UDI as recently as April of 1992,Mr.Weigand has been involved in numerous la development projects including a 50,000 square foot community shopping center in Galena, Illinois. The 3.2 million dollar shopping center was completed in November, 1993. ■ Another recent project is the historic restoration of an 1856 Hooley Opera House in downtown Madison,Wisconsin. The Hooley Opera House restoration included a mixture of office and commercial uses and was awarded special recognition from Madison Gas&Electric Company : for its energy efficient design. DEVELOPMENT CONSULTING BROKER AGE Current development projects supervised by Mr.Weigand include a U.S.Postal facility in MANAGEMENT Galena,Illinois,a 91-unit senior community in Moline,Illinois and the historic renovation of the ii r' 1895 Opera House in Mount Horeb,Wisconsin. _+ Mr.Weigand has also conducted several consulting projects for UDI including market studies, site analyses,financial feasibilities,development approvals for numerous development projects in '! Wisconsin and Northern,Illinois. �y Senior Associate,Camiros,Ltd.,Madison,Wisconsin Mr.Weigand was a Senior Associate with Camiros,Ltd.,a national urban planning and design. consulting firm. Located in the Madison,Wisconsin office,Mr.Weigand was project manager for over 50 consulting projects throughout the Upper Midwest. Consulting projects included comprehensive plans,downtown redevelopment plans,market studies,site plans,financing _ strategies,and tourism planning. 4 Mr.Weigand worked in numerous communities throughout the Midwest including: a Kenosha(WI) Galena(IL) Reedsburg(WI) -4 Neenah(WI) Buchanan(MI) Beloit(WI) Dane Co.(WI) Freeport(IL) Mason City(IA) 'J Hancock(Ml) Cross Plains(WI) South Milwaukee(WI) Ashland(WI) r East Moline(IL) Eau Claire(WI) Whitewater(WI) Salem(WI) Janesville(WI) 124 South Pinckney St - 711 ribk Suite 200 Madison,Wisconsin 53703 I Telephone: (608)251-4466 Facsimile: (608)251-8866 "a, iL Thomas F. Weigand (Continued) Experience (Continued):, Economic Development Specialist,Madison Gas& Electric Company,Madison,Wisconsin Mr.Weigand assisted MG&E in recruiting business and industries into the Madison,Wisconsin area. Market information collected by Mr.Weigand assisted MG&E in the design and development of the Innovation Center,a biotechnology incubator in the University of Wisconsin Research Park. City Administrator,City of Galena,Blinois Mr.Weigand served as City and Zoning Administrator for Galena,Illinois,a nationally registered historic/tourism community located in northwestern Illinois. Nearly 1.5 million tourists visit Galena annually creating a thriving tourism economy in the community. Mr. Weigand managed numerous aspects of the City including zoning,budget,historic preservation, recreation,and the general administration of the City. During Mr.Weigand's tenure in Galena,he facilitated the restoration of numerous historic structures including a$6 million dollar public/private partnership project involving the public swimming pool,a$8 million dollar renovation of the historic DeSoto Hotel,establishment of a e"'' downtown TIF district,and the drafting of a historic preservation ordinance. Mr.Weigand also drafted the Illinois State Legislation regulating the safe operation of bed and breakfast establishments. Other Experience: Mr.Weigand has also previously worked for the Corps of Engineers,a Neighborhood Housing Services(NHS)in Davenport,Iowa,and was previously involved in retailing for several years with Osco Drugs in Moline,Illinois. 4 professional Associations:, y! Licensed Real Estate Broker-Wisconsin American Institute of Certified Planners,AICP American Planning Association Urban Land Institute Downtown Madison,Inc. Wisconsin Community Development Association Board Member,Campbell Center for Historic Preservation Studies,Mt.Carroll,Illinois a rs • Thomas F. Weigand (Continued) Publications: "The Relationship Between Planners&Developers",PAS Memo, American Planning Association,February, 1990. "Developers Rate Planners",Land Development,The National Association of Home Builders,Fall, 1990. i Teaching&Guest Lectures: Visiting Professor,Dept.of Urban Regional Planning,University of Wisconsin-Madison(1992-1995) University of Wisconsin Law School Augustana College,Rock Island,Illinois Illinois Historic Preservation Agency Wisconsin Community Development Society Middleton High School Downtown Madison,Inc. ! American Planning Association-Midwest Conference ! I . • • • • i • i i • Real Estate Development `- _ rib' WI Urban Discovery, Inc. (UDI) is a solution oriented development company. In a real estate development industry that is growing increasingly complex and competitive, UDI offers innovative solutions to the traditional development process. Creative development concepts, public/private partnerships, fresh investment strategies, and a Urban commitment toward the revitalization of our urban environment makes UDI a leader in Discovery Inc. • today's generation of real estate development. FOCUSED URBAN THERAPY UDI will give consideration to any real estate development project, large or small, i. that positively advances the self-prescribed goals of a community. Our specialty and interest lies in challenging redevelopment and rehabilitation projects involving is residential, commercial, or industrial uses. We call UDI's approach to development 41•J "focused urban therapy" because we apply holistic redevelopment strategies in the reclamation of our urban properties. The real estate development services provided by UDI can span the entire real estate 1`j1 am/1 is development process from initial concept to completed project, or focus on specific development services within any stage of the development process. The various stages may include site selection, initial feasibility analysis, planning, zoning, finance, architecture and engineering coordination, construction management, leasing, and property management. At UDI we take pride in the completion of each stage to ensure C:14 "! " a feasible product and the continued discovery of our urban environment. iw C.0). Development specialties: • Rehabilitation Projects: The restoration and adaptive reuse of existing 1) 7 structures is a prominent aspect of UDI's development services. UDI places particular emphasis on rehabilitation and preservation of architecturally and historically significant structures. ›'' a • Redevelopment Projects: The creative redevelopment of underutilized urban /11) properties is a core focus of UDI's development efforts. UDI prides itself in working closely with public officials and local development organizations to package successful redevelopment projects. -t.'i (111.21 • New Development: The development of land to address unsatisfied residential and commercial needs in a community is an important component of UDI's development services. Particular emphasis in new development projects is given to the provision of affordable housing and neighborhood retail centers. UDI can approach development projects in a variety of ways including limited partnerships, public/private partnerships, or offer contract development services '= commonly referred to as a build-to-suit. UDI is also capable of integrating tax credits or state and federal funding programs into development projects which are eligible for such funding assistance. s1 124 S.Pinckney St Suite zoo ', Madisoa,WI 53703 . (608)251-4466 FAX(608)251-8866 r • Market Research Studies: rm.' WI i Urban Discovery, Inc. (UDI) and its professional staff have completed numerous market studies and market related research throughout Wisconsin and northern Illinois. UDI staff members have prepared market research studies in the following Urban communities: Disco Inc. . w FOCUSED URBAN THERAPY Market Research Projects: M Madison, Wisconsin St. Francis, Wisconsin Milwaukee,Wisconsin Galena, Illinois Oak Creek, Wisconsin Two Rivers, Wisconsin Howard, Wisconsin Green Bay, Wisconsin Brillion, Wisconsin ' Janesville, Wisconsin : Town of Beloit, Wisconsin Superior,Wisconsin Cedarburg, Wisconsin Fitchburg, Wisconsin ill Black River Falls, Wisconsin -- Platteville, Wisconsin tO Appleton, Wisconsin Kenosha County, Wisconsin Waukesha, Wisconsin Brookfield, Wisconsin „ Fond du Lac, Wisconsin Veroqua, Wisconsin LaCrosse, Wisconsin Neenah, Wisconsin ? r. Menasha, Wisconsin Mason City, Iowa East Moline, Illinois Menominee, Michigan rl"i al Delevan, Wisconsin West Allis, Wisconsin Monroe, Wisconsin Moline, Illinois Baraboo, Wisconsin Reedsburg, Wisconsin cin Racine, Wisconsin Waupun, Wisconsin Wisconsin Rapids, Wisconsin Belleville, Wisconsin Market Research Clients: CD Madison Gas&Electric Company Hitchcock Design Group COO) Hl _ ffman Shaffer Associates Horizon Investment& GIC Development Development Corp. Financial Concepts, Inc. Coldwell Banker- Sveum Harmony Homes • Realtors 7 Wisconsin Electric Power Company Discovery Group, Ltd. Heartland Properties; Inc. Nationwide Housing Group 'C Brodbeck Enterprises, Inc. M.S.P. Real Estate, Inc. Walworth County Housing Authority Galena Square Limited Partnership 's1 Planning Associates Renaissance Group formerly Decathlon, Inc. i2a S.Pinckney S< elm, • ...75 • Wisconsin Housing and Economic Development Authority(WHEDA) suite zoo s+ Hitchcock Design Group Madison,WI 53703 . (608)251-4466 FAX(608)251-8866 r • • Real Estate Consulting: Urban Discovery, Inc. (UDI)provides a full range of real estate consulting services related to all types of real estate investment and development. Successful real estate ventures in today's real estate industry require careful planning and analysis combined •I with creative solutions. UDI principals and staff bring over 35 years of innovative real Urban estate experience ranging from land use planning to urban redevelopment strategies to Ut'I cry sound investment analysis. UDI takes pride in its ability to provide effective Hoc•T,SID URBAN THERAPY Y consultation to developers, property owners, tenants, lenders, public officials and others involved in any aspect of the real estate process. Real Estate Financial Investment Services: • • Financial pro forma development and analysis for residential,commercial,and industrial development • Investment strategies for both private and public entities • Financial lending and lease negotiations ts0 • • Income approach appraisals • Section 42 Tax cre'Iit/WHEDA applications and analyses • • rimig Market Analysis; +14 • Market studies fog residential,commercial,and office developments • • Surveys and focus groups to define market demand and facilitate development design Development Strategies: V 1 • Development/Redevelopment concepts • Developer recruitment services • Structuring public/private partnerships • Land and site planning (1110) • Identify adaptive reuse opportunities for underutilized buildings • 7 • Development Approval Services: • Permit approvals for private sector development • Public negotiation and facilitation services • Development and site plan review services 124 S.Pinckney St. Suite 200 Madison,W1 53703 • (608)251-4466 FAX(608)251-8866 mow, ism., vg; MISSION STATEMENT DO is an architecture/interior design firm who strives to serve our clients needs • by maintaining and developing talented staff to provide the organizational, communication, creative and technical skills and processes necessary to: • • Clearly define our clients goals • Design environments to meet our clients goals. • • Manage projects to accomplish our client's goals. • • • M A 3 3 PHILOSOPHY DO believes our success is due to four key elements;quality staff, process, service,and experience. STAFF DO has been able to develop a quality staff with little turnover due to managed growth without fluctuations and a focus on staff development.Controlled growth has also allowed the principals to be directly involved in projects from programming to punch list. This provides our clients with both continuity of communication and one-point responsibility. PROCESS The design process is methodical,not mystical,and success is generally based on communication. This begins with definition of roles, responsibilities, and procedures for the total project team.The most important step in the design process and the owner's greatest opportunity for input is programming (clear definition of functional,operational,aesthetic,budgetary,schedule,and flexibility goals). Design is the creative problem solving process which translates the program into an environment which meets the program goals.Cross discipline input on all design iss,Jes draws on the individual expertise and perspectives of team • members and develops an exciting synergy for unique problem solving. Team coordination, input and review continues during the development of construction documents. The types of decisions change, not the process. Throughout the project we maintain a quality control system.The construction documents are prepared on DOS based PCs with AutoCad Version 12 and MASTERSPEC WordPerfect. During bidding and through construction DO is known for continual communication with the contractor, joint efforts at problem solving,clear definition of procedures, availability and prompt response, and most important, representation of the owner's interest. SERVICE Very simply we believe our large number of repeat clients, and the opportunity to do quality design work are the results of a DO focus on service(availability, accountability and a commitment to meeting our clients needs). EXPERIENCE DO has over twenty years of experience in public works,health care,corporate and regional architecture, interiors and planning projects, for clients locally, regionally, and nationwide. rft, FIRM PROFILE Name of Firm,Address,Contact Person and Telephone Number: Principal Office: Branch Office: Design Organization Inc. Design Organization Inc. 445 North Wells Street, Suite 302 103 E. Indiana Avenue Chicago, IL 60610 Valparaiso, IN 46383 Phone: (312)670-4500 Phone : (219)462-1102 Fax:(312) 670-4503 Fax : (219) 464-1241 Contact: Spero W.Valavanis Length of Time in Business: 24 Years List of Services: Architectural Design Building Analysis • Master Site Planning Construction Administration Interior Design Mechanical Engineering Facility Planning Electrical Engineering Functional Space Planning Civil Engineering Equipment Planning Structural Engineering Facility Management Programs Project&Cost Management Computer Capabilities: CADD Based Design And Production-2D, 30, 3D Video Imaging AutoCad Version 12 List,as of June 1995, of the Firm's Personnel by Profession or Skillgroup: Registered Architects 7 Architectural Designers 2 Interior Designers 4 Graphic Designers 1 3-D Computer Animator 1 • • Administrative 4 Total 19 a • a a a • SPERO W. VALAVANIS, A!A PRINCIPAL/ARCHITECT • Mr.Valavanis was born in Hammond, Mr.Valavanis is an active Rotarian, a Indiana in 1952. He graduated from past member of the Valparaiso Rotary Hammond High and received his Club Board of Directors, and a Bachelor of Architecture Degree from Business Exchange Team Member Ball State University in 1975. sent to Greece. He has also served on the Board of Directors of the Boys' While attending Ball State,Mr.Valavanis and Girls'Clubs of Porter County and worked on industrial, residential, and the Porter .County Youth Service commercial construction projects. An Bureau.He is on the Board of Directors understanding of construction materials for the Valparaiso Chamber of and methods has reinforced his design Commerce and is Vice-Chair for the • talent. Since joining DO in 1976,he has Valparaiso University Community been involved in research, Campaign.He is also currently serving programming and designing a variety of as Chairman for the Valparaiso commercial and industrial facilities. Economic Development Committee Clients include Amoco, NutraSweet, Long Range Planning Forum. Mentor Graphics, Gettig Technologies, United States Postal Service,and Pfizer. Mr.Valavanis feels the highest priority in the consistent development of quality Mr.Valavanis is registered in Indiana design is definition and understanding • Illinois, Florida, and Ohio is NCARE of client needs through good clienU certified and is a corporate member of architect communication. the American Institute of Architects. he has served as past secretary of the Mr. Valavanis has researched and • Northern Indiana Chapter of the lectured on historic preservation, American Institute of Architects. alternate use, and successful project development and administration. w w 4 4 • BLOCK 18 Project Name and Location: VALPARAISO, INDIANA Simultaneously looking at the past Roy,a Michigan based consulting firm. while taking design steps forward Some recommendations included, • seems like an excellent strategy and developing and adopting a program of • one used by students studying facade restoration that is sensitive to • downtown Valparaiso. and builds upon the historic qualities of They were part of an urban design the buildings; develop a program that team from the college of Architecture encourages the use of second and third and Planning at Ball State University. stories as. professional offices and Professor Tony Costello and residences and promote retail and other associate professor Harry Eggink and pedestrian-oriented functions at the • six of their students were invited to street level; develop a program that • Valparaiso by the Valparaiso Chamber makes more positive use of the alleys • of Commerce and the Central Business for access to shops on first floors or District Committee of that organization offices and residential use above;and • to analyze proposals for the downtown develop a program that promotes area. landscaping of existing parking lots. Some of what they designed Also stressed was the need of public coincides with an earlier planning study and private support for any • compiled by Johnson, Johnson and improvements that need to be made. Reference: • Size: • Estimated Cost: Completion Date: • ra. it ■ gltdL �_, :, f 1 �� .IIIpHINIIL 111 � ` .' ''=may ,�,,dlllllllllllllllII1, _ uU. • _,,�i�uNH+,►H�,�, ��nnl.. .� mm::mir. ivAr �.. vv, v'1�.1�• ..,• __. , J�JS. 1 �'� 1�„ [- i.14 la 'J� r � �h W11.14. 1;.�. U - • t MEMORIAL OPERA HOUSE , Project Name and Location: VALPARAISO, INDIANA The Memorial Opera House is replaced with reproductions made of celebrating a centennial, 100 years copper,a more durable material. since its dedication as a living memorial Tuckpointing, painting, and to the sailors and soldiers of the Civil stabilization of the masonry was the • War. In keeping with the spirit of the next stage of the exterior renovation. centennial, there was a renewed The east, west,and south sides of the • interest by many groups in the building were repaired and resurfaced community to renovate the building. and the entrance facade was cleaned • Act one was the renovation of the and tuckpointed. exterior. The leaky roof was the first Act two, the interior renovation, will . problem addressed.Water damage had include disabled access to the building, occurred inside, due to the roof's poor as well as other ADA (Americans with • condition,so a new rubber and shingle Disabilities Act) code issues. Two roof was installed on the main building. balconies that run along the inside east . Slate, the original roof material for the and west walls will be removed and two entire building, was replaced on the large arched stainglass windows,which . turrets. The rusted galvanized steel were covered when the balconies were details on the turrets were removed added,will be reopened. . during the installation of the slate and Reference: Mr. Fred McNulty • Foundation President Size: 10,000 sq ft . Estimated Cost: $800,000 . Completion Date: Ongoing `^ , j S - ....• _.. _. i - _ .. ., - .t t ice. c ! N::\.7 ,' ' ,'- I > • . .. ! -• ` -,-,-.77 w sa�G Y,�. w. T x r ,I '.ter' - '1"4111 "“411 ..---- . moolowe* to , \ 1116, 1 " \ . )it ' ' • ''' -F- ... 1 , . , ...1.•A,„.00 ' •-...... .. , •:, . 7.■kso„.. ' . , tl k IN . ,. ,.. • ' 1. \\\ .k, .. '•"4"7—.*. '""^-. ...„. 1 .,, \ , ,, , , ,, ...) • -A V 4'. '' 1/2.ki-%.• - - --- •--T. I, k ..__ :,,....\...A •,. - 1. .7',. • . - ' 1 i I , .\ ' . - • y ... . . ' ......As. , ...... . ' .. .,•.,. ---, - , t 1 *•,..-:"..,. ''''' i • ' ''.•;•. ,.?:*kt,',„:„.-,r, , . skfil: ''•' f% -: ----,,- v 'Ilik - . I... -.,„. • .,,,..,'„,,.,,,,,,:,‘,„.;-,.-.-,-,..,-7,.-, ': '' .., ‘ ...,. . ,.. . i .,. ......,, , . ....." ..., 1- , 1 . -. ',.*"....h.:1,-4'. ''`-!rt••;._ _ . 116\ ,'IV...,..7■,.V. k'. ''' ''',.....«4,Lr,,'•,,,,-,;:''..:.- , . ‘,. ,•,..,',:,,,:f,„-‘',,,,,,,j4:: , . \ . .. .,. ...., . \r""' • :. LAKE AND LAND OUTFITTERS Project Name and Location: VALPARAISO, INDIANA The owners of Lake and Land and display units are angled toward the Outfitters,asked DO to design a space entry to present merchandise to for their new store in downtown customers as they enter the store. Valparaiso.The store, which features These units also double as storage clothing lines such as Patagonia and space for additional inventory and Royal Robins, also carries a broad supplies.Above the checkout counter, selection of hiking and travel gear and a drywall outcropping mimicking a rock related accessories. The goal was to ledge lends graphic impact to the design a space in a renovated space.The store's logo is incorporated downtown storefront which would into this ledge which is accented at night provide an exciting backdrop for by track lighting to draw the attention of displaying items. passersby.The store, hopes to further The finished store is a blend of enhance the visibility of downtown texture and shapes,ideal for this colorful Valparaiso as a place to live and shop. and sometimes hi-tech gear. Shelving • Reference: Mr. Rob Lynch Ms. Jane Kobak Owners Size: 3000 sq ft Completion Date: 1990 • 04 it. It K y: . y • folk - * tg. 91R 1 t e • 'III 1 1 .,-,.-.., •.;.;....r.,-...,:„.1.4,..C.'A, ,t L.'?-3'6-'•-ka, .,.. k.../..,t.10„.k„...-.....!.,, '.-. • 6:. . , , ...-... ' ' " ' AINIIIIIMPI••••16MINIVII .`,. . • • • ....t..1■;.:: , . — -- 7, . '• . ...••••••... '" :,e,tL rx. ,.._ ...........• i , ......... ,... 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',.*-. ., 'ts..rt, . -.4.'45•!;4'.;,•`....:• r 'I-- '',...t. - - - .....,„ .,• .,. ••._,,--......,. • ._ f ... . , ......... ,.. :I'''4i '''',' '•'''.''..''" ''. . ' ' . • ,,',, , ,■,,.. _ . . . • ,'14."1;;;:. .-...i.g^'.1:!;,41.,,.,'.7.,.. ,, — ., . . ' ..",-*'41144.44-■?..5 ::' .;'..ii..':'" . ' '' ,;',■,.14',.7,1."! ,' ,.. 1 •.', '.,,'i.H4 ',•,..., ' 1 r COFFEE AND TEA MARKET Project Name and Location: VALPARAISO, INDIANA • This project involved the complete become part of the shop and further main floor interior and exterior open up the floor plan. renovation of a downtown commercial The exterior renovation saw the building that had seen many alterations removal of inappropriate elements such over the past 100 years. The original as a shingled mansard roof and plastic historic character of the building was signs.Traditional character was brought considered, while accommodating the back to the building with the introduction contemporary needs of the Coffee & of a painted wood facade,an historically Tea Market.Interior renovation included appropriate externally lit sign board and removing inappropriate suspended traditional incandescent metal shade ceilings and type light fixtures reminiscent of the fluorescent lighting therefore raising original design. Interior and exterior the ceiling height to its original 11-foot colors were also chosen to provide level with exposed ceiling structure. identity for the shop on the street and Traditional pendant type incandescent to observe historical color pallets.The • lighting was introduced to set the renovation is especially notable atmosphere for display of food and because it is a lease-hold improvement creating a comfortable place for people and demonstrates a commitment to to shop or dine. Valparaiso's future by tripling the shop's The new kitchen is visible to the square footage and visually enhancing customer through a large window the quality of our environment. allowing the preparation process to Reference: Ms. Nancy Vorm Owner Size: 3,000 sq.ft. Completion Date: 1987 -f* 177 „ t7-7:4, .- 1.1 V AU • ri • , . 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".,..„'•,,' :',...i,-',. ""'.' . '' ' --Ill , .. . ''',''''•'‘'•4; e;.''.';,.,1 i P..r.A., ......, ..;',,,,,.'..4.:!: Tv-,,,..'z',1,..1,",.r.-......,'..',14,7".4,-, . '''.'- ' ',+:1'.f'',,;:i4 ■;i'0',....'..; :t' :1,i 1 • 'i1 ,..; 4 • L .,v. . 1.-r, 4,.... li - - Ilie ''.,1"1,; '‘ 1pt 1 ' )'ill '1 ,.■, ':11;'''. ' • 1 I '1'/CI " -• ..,'... ''i-1.1 ilf iir*! . ' • ,.1;1: ; ' i 111 ' lt,,, • 6.141 . , "%, d.4 , ,-,4!-?, 1 ,,,,14„. •,,,,v *, f - .' ,. :-., •-, . r ,,,, , • , .if,.,,d, • •''',,t'f -.. ,Itr.:!,,„',...", , .1" '1'7.4r,''''''''''''''177-7M"1-''',';' ' - - -';''.'*.''1':-"A'r.■...,-14:,, ' j 1.,,-'',"' ' . '' , . .1;',,i,'V-, . o . . ,.. en • ' i / ----.— ( 1 . . • t , '10 N •Ilei ,.. *$ / '' , • . ., • 1,', ,. , 1,•I. 1 1 7 ,. l 1 IIII f• 4. . •• ,.... .. . . , i .., , . ......., I , . I • , '-'a.. ,__... . $..,, , .: ';cad •• . - , . , • 4 , , , ., . . . . . . . .. I '''. ,•• • ■ _.• ....1 -- 1 ,. .. . • . .. . . • , ' • , . , • _ . ,, .!. • r, - . , I , ,....., .. 4 , - — ._. ._ ..: -- I 1111 1 7-' -- , ---T` ...._ ,.. ..,_... elk PORTER COUNTY ADMINISTRATION CENTER Project Name and Location: VALPARAISO. INDIANA With the completion of the Porter plan was designed to be user friendly County Administration Center in with each major corridor acting as a downtown Valparaiso comes a new era "Main Street" for Porter County for Porter County government. Government. Each corridor faces an Following unanimous support from the exterior plaza which further enhances Porter County Commissioners, the orientation for visitors and staff.The Porter County Council and Center's northeast focus towards the conscientious input from elected officials Porter County Courthouse and its and staff,the design process concluded similarity of materials, facade rhythm in the fall of 1991. and detailing relates the two facilities The 18 months of construction that visually. It has provided an economic followed was coordinated by the general and visual anchor to the southwest contractor, Hagerman Construction of corner of Valparaiso's central business Fort Wayne, IN. district. Enclosing a full city block,the Center The community was introduced to has over 63,000 square-feet of office, a facility symbolizing effective county meeting,storage,and expansion space; government and community pride that and off-street parking for 290 will serve all the citizens of Porter automobiles.The simple organizational County for many years to come. References: Mr. Brian Gesse Porter County Commissioner Building Parking Garage Size: 63,000 sq ft 290 Cars Estimated Cost: $6,000,000 $1,400,000 Completion Date: 1993 1993 ... : , - �1 1 1, • 1_ r t ^t A " L "111) •. .4. '- ---"101-T:---,,I,,,;:.P.L5k01'...:..'.:;;;;'-'"r:— • '' ' , f . -..-. . _. 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''' •'''''' . ''''''''r"''''fr:414?f;',.'''''',,,,,x''''.1'..'.,,.*:,'''.'1.i",-:•,,'1.,.',,.Y.:.k),,'''';'''''''''''''',:r'c''''' ''','"11-1:','='''''''''' . ''''''..'.r''':.:',i''''''''''''''''''' -,,,,,,,71,..;$,,,,:.,',7%.,,,,,,...,,,,,A. ..i, — -11,-,'',,,I,,,...'0,,'''./1-i',:'„",''''l.,b,y, .■,'.,,',),4'":,.''..',' . ,— ' ' .°''i t',',.il'''',„;'';'A,"., ,.,.,'IJI .,-4'' ' .. '.: "..■.•,. '.. .. •^°. r. . .,,.. .. ...'..:^”.;;;,,,,..,,..i...m,4;1,4*,tr,0,,,:„ ,7,,,,ii.jk ,,,■:r.,.1t.,V,i11,4:410,,,,f.,..r.lt,k.r.t:.Irp;4',,Fr,,,,,:r!;',,,r,".,,,,,t,::.,',„-:L'l''.:,cr.,,: ,..r..,,,,,.,,.,.,.r,.,,,,!1,,,,,,;;Itl :,,,..,,r.i.,...,,,,,,,,,,,„:.,,,,....--,...,,,,,,,..„,...,..1.,,,y,,,...-',,,,,.7.',,,',:ri:r;s:i„',".:,'','4.....‘'''.'..i''.,,,, r . '. ,,;;;.i, .■,' l'......:,k.,'„Ii...?..,,,i1n.',.1'''.-.:41,■.0';,■.;...,.■';L..,,,,Ii'''.,','',;;',',, ..',,,,.;',,,'1"'.41^;,..,..,111Aijk'4.,:i'r,4(''.:;',.:,./..,`''''4'...44'...1(''..;',.-,'.1'..,-,','.'',1‘,.;;;P:14:1:..,'.45','",414.'';',:tr: •"4 '';'''' '',.:r '. ',,'t i'1,' '' '1- ''•' ''''''. '''.. ' 1 , , • DO PORTER COUNTY COURTHOUSE RENOVATION Project Name and Location: VALPARAISO, INDIANA The fire of the winter of 1934 brought The rotunda and public spaces of the destruction to the Porter County structure will be preserved,along with Courthouse that would forever alter its the historic courtrooms which will serve venerable stature. The huge tower, as models for the new courtroom ornate cornice and roof, severely development. A complete updating of damaged by the fire,were demolished mechanical,electrical,plumbing,alarm, to make way for a modest upper level acid elevator systems will take the addition and interior remodeling operation of the building into the 1990's completed in 1936.DO finds itself in the and beyond with energy efficiency, challenging position of planning the first comfort,and life/safety improvements. thorough renovation of the Courthouse While the building is vacated during since the depression era. the 12 to 18 month construction period, To maintain the historical nature of two courts will be temporarily housed the structure, the exterior will receive in the 6,000 sq.ft.expansion space at only a gentle cleaning,and modest site the new Administration Center, while and landscape improvements. The another will temporarily function out of interior will see the expansion of the the new Juvenile Services Center.The County Court system and related remaining offices in the Courthouse will offices into areas vacated by also have interim homes at the departments which found new homes Administration Center in areas in the Porter County Administration scheduled for eventual use by Center. Together with the four existing departments now at other locations court areas, the building will around the city. • accommodate Adult Probation, the County Clerk, the County Superior Court,the Prosecuting Attorney,and a . much needed meeting and storage expansion. Reference: Mr. Brian Geese Porter County Commissioner Size: 46,000 sq.ft. Estimated Cost: $3,500,000 Completion Date: 1995 • • , • � Z. Q S. .g" • i s 'i f . . r Virtual , maging 3-D MODELING / VIDEO ANIMATION J 1VALPARAISO, INDIANA J Design Organization Inc., an architectural and interior design firm with offices in Valparaiso, Indiana, and Chicago, Illinois, announces the creation of an affiliate • firm,Virtual Imaging.The new multi-media company will combine computer generated 2-D Cad,3-D animation,and sound to produce photo-realistic videos that will"walk" architects, manufacturers or developers through a proposed project before actual construction is begun. Multi-media video is becoming an effective marketing tool used by developers to recruit investors and tenants. The new company will also focus on corporate and health care training videos, product design, and process engineering. f r .4411 L.,.. . _ . ,. .. .., . r.,....,,..... .. , ..... .,. . __ .... , .,_ _.,. --.7:k.r--Ir.- .- --. - ..., 1 . ,_,.. .. . . ,z... .r ,. _ ii ,.... ..„ . p _ . _ _ __ _ ha s._. , _ .I _ i i I i. r+' ! s 3-' ^t. -r.___ 1 .- — ill• } .,.. 1 .-=�,* ;yam_ ,"_7...- -^.. 1 Architectural Rendering-Porter Memorial HospitaWalparaiso Surgery Center R r f// - a 9 - r V Y .3 .0 COMPUTER -, : M O D E L I N G ., - N I M A T I ON E--,-.:, ?.._:...t_..../.,..-------....,-----------z--- _,1 D E 0 S - _ . - 103 EAST INDIANA AVE ^ti ;C -.`��+,{ . }_ VALPARAISO,INDIANA '`.:=r� Zr4':,_-.+'- f�' 1 . 4 6 3 B .''-- _ Via:•t,,.'-_ -y'- 'It-� 3 .. - =i . , Dalyllerald Tuesday,October 10, 1995 • W. Dundee ine-tunes riverfront plans West Dundee trustees final In the latest plans, designers. ized their plans to develop an narrowed the path from eight,to $837,000 path along the Fox six feet wide and chose brick River Monday. pavement instead of concrete. Architects from the.Naper- = Trustees asked the architects "ville-based Hitchcock Design.: .: to make sure the lights along Group said they will go out to the path do not shine into near- bid on the project this winter by homes. Construction on`the riverfront - "That's one of the concerns of 'path will coincide with Illinois the neighbors down there,"said :..Department of Transportation Trustee Margaret Jefferson. "I `:renovations on Route.72 and a -. know they would appreciate downtown improvement.project knowing if(the lights are) going in West Dundee this spring.: to be on all night." • r Richard G. Hitchcock • . PRESIDENT/PROJECT PRINCIPAL,PLANNER • Bachelor of Landscape Architecture(with honors), University of Illinois, 1975 Registered Illinois Board of Directors, Central Area Naperville Development Organization(CANDO) Resource Committee Board of Directors, University of Illinois-Department of Landscape Arch. ■ Rick Hitchcock has directed,planned and designed numerous successful projects, large and small, for private developers,institutions,and public agencies. Since 1980,his contributions as president and principal of the firm have positioned Hitchcock Design Group as one of Chicagoland's most prominent land planning and landscape architectural firms. • Rick's belief in long-term commitments and traditional values is demonstrated by his active rinvolvement in many community aad regional organizations. As a life long resident of Naperville, he has donated professional servic's to many local schools,churches and business organizations. He chaired the committee that rewrote the Naperville.Chamber's strategic plan. And,he is a frequent speaker to civic organizations that are contemplating special community development 5 projects. In 1981,Rick became involved in the Naperville Sesquicentennial Commission and its development of the Naperville Riverwalk. This special commemorative park,created in celebration of the City's 150th birthday,has received substantial recognition,including local, state and national awards for its planning,design and implementation process. I Member: American Society of Landscape Architects Illinois Park&Recreation Association Sesquicentennial Riverwalk Commission University of Illinois President's Club North Central College President's Club Previous leadership roles: Past President and Director,Naperville Chamber of Commerce Past Board of Directors,Firstar Bank Past President, CANDO Past Chairman,DuPage County Chambers of Commerce Accreditation Team, Univ. of IL-Dept. of Landscape Architecture Comparable experience: . Napervil a Riverwalk-Naperville,IL eft Barstow Plaza-Waukesha, WI Frame Park- Waukesha, WI Batavia Riverwalk-Batavia,IL Elgin Bike Trail-Elgin,IL Downtown Waukesha- Waukesha, WI LaGrange Streetscape-LaGrange,IL • .-olcnCCCk;es■gr, .nC Geoffrey B. Roehll SENIOR A SS O C LA T E/PR O I E C T MANAGER B.S Landscape Architecture Purdue University, 1983 Registered Illinois North Carolina Geoff Roehll has demonstrated his management,planning and design skills for prominent consultants in Florida,North Carolina and Illinois. Since joining Hitchcock Design Group in 1990,he has contributed to many significant projects including the award winning Tillers nursing home in Oswego,IL,the$1.5 MM Barstow Plaza in Waukesha,WI,the proposed Brookfield Zoo conference center and gateway remodeling,and the Law Library at the University of Illinois. • Geoff s rtfolio of built work confirms his po passion for good design and his keen eye for detail. Yet,his congenial demeanor and outstanding planning skills make him a valuable leader on large scale,zoning,land use and master planning teams where the art of coordination and persuasion are • crucial. As a Senior Associate,Geoffs official company responsibilities also include recruiting and training new associates,managing Hitchcock Design Group's creative resources and participating in local • civic organizations. Unofficially,Geoff is the frequent target of most construction related questions like"How do I get this built?" • Member: Rotary Club of Naperville American Society of Landscape Architects • Co aablc mpar Experience: Town Square-Schaumburg,IL Barstow Plaza- Waukesha H7 Frame Park- Waukesha, N7 Downtown Waukesha-Waukesha, WI i .1 .1 a HgcnrocK Ces.g^ ^c Craig R Kruckenberg — — SENIOR R ASSOCIATE/PROJECT DESIGNER r Masters of Landscape Architecture, 1988 • Bachelor of Science, Horticulture, 1983 Iowa State University s Registered Landscape Architect: Illinois s A well-respected graphics,planting and design expert,Craig has been on the Hitchcock Design Group Team since 1988. Craig has been instrumental in creating master plans for the La Grange Streetscape in La Grange,IL;the 150-acre Perry Farm in Bourbonnais,IL;award-winning Austin Gardens in Oak Park,IL,and the Fox River Trail in Aurora, IL,as well as site planning for The Farm in Tinley Park,IL;Tabor Hills in Naperville,IL,and the U of I Law Building in Champaign/Urbana,IL. Within the office,Craig keeps the Hitchcock Design Group collateral updated by creating full color project notebook sheets on significant projects of all types. Craig has the techniques and a sixth sense in design to make the presentation of a project look a cut above the rest. Craig is also responsible for management of Hitchcock Design Group's construction cost data base. Beyond the office,Craig serves as a commissioner for the Warrenville Park District,thus implementing his practical experience in planning,designing and construction for the Park and Facilities sub-committee. s Member: American Society of Landscape Architects Commissioner, Warrenville Park District College of Design Advisory Committee,Iowa State University South Suburban Parks&Recreation Professional Association Illinois Association of Park Districts Comparable Experience: Downtown Waukesha-Waukesha, WI Town Square-Schaumburg,IL LaGrange Streetscape-LaGrange,IL • 3 i tcncock Des,g^ Inc LHitchcock Design Group Planning & I._andscape Architecture for: r Better Places to Live Work and Play Public Sector Services c take our dre:IJtis ei IuuSIv' PROFESSIONAL SERVICES Our prutession:lls help Comprehensive Planning: conununit\ leaders implement Resource inventun and analysis. Land important projects that imprme,2 vervone's use. circulation and appearance smite yualit% of life gies. guidelines and standards,budgeting - 13v combining our outstanding and implementation recommendations. communication and budget control skills Site Planning: . with significant construction phase Streetscapes.waterfronts,specialty parks .i experience.we will meet vour most civic properties, transportation corridors s�. demanding expectations and project and facilities, libraries. historic properties '..,w - requirements and commemorative projects. We provide the kind of diligent. Communications: Vicbo/'s Librcrrt. personalized attention th:a you expect front Reports,promotional graphics,color :t small office. Vet, through our collabora- renderings,oral presentations, focus lion ■■ith other consulting specialists,we groups, video imaging and opinion offer multi-disciplinary project capabilities. surveys. Site Design: r _ Grading,paving, planting, lighting, ._�. _ '....r.... ---,` screening, ir1'igation, furnishings, •y - ern::: - ' ` -1 "- - . ' 4 graphics,special features and wetland 7 .rl� - ` r " 'tt mitigation. :�-t� Construction Documentation: :. ► ' -, _ -, 'Technical drawings and written specific, LC. , - ~ '!►`= +# w"'°*-� 1 tions. -;� �.�+r -i . 1 Construction Phase Services: 1 Bidding, negotiations,construction > > -t • - '--- - observation, material selection and 7ti•-„`�� k f��4L,i.�111 1 ! E lluiltenallCe I'ec011llllelldattouis .' T yam _ . ' �� '�e Batavia Rirerteal/ and Municipal(wnp/e.v REPRESENTATIVE PROJECTS Riverwalk-Naperville. IL Barstow Plaza-Waukesha.WI Hitchcock Design Group Downtown Streetscape-La Grange, IL Public Library-Palatine,IL Festival Center- Hobart.IN Police Facility-Naperville,IL 221 West Jefferson Avenue • Riverwalk-Batavia. IL Naper Boulevard-Naperville,IL Naperville, Illinois 60540 1 1111 rik Tel. (708) 961-1787 Nichols Library-Naperville. IL Municipal Center-Bartlett,IL Fax (708) 961 9925 Fire Station-Naperville, IL Police Station-Wheaton.IL Branch Library- Aurora,IL Public Library-W. Chicago.IL 1 ®nn,uc d;,,, ,e r ie r Paper Commuter Station-Bensenville. IL Safety Center-West Dundee,IL Project Notebook Public Portfolio r ,• Barstow Plaza Waukesha, Wisconsin M any communities have used rejuvenated riverfronts as a tool to attract more people - -- Y MCloak .ii911 into the downtown. At Barstow PIaza in Waukesha, Wisconsin, Hitchcock Design Group has ..'.:� helped the community to •"�' �� �" 4nu,�i taut actually bring its riverfront -s. '' ,�r� L - resource to the people. yP _ _ � i= - ..wriPME Mt t _ z_ _tom: As lead consultant, A, 3 . ••4 i 4iii..1111 I POINC--3,77011 Hitchcock Design Group ' °-' �i�ipj. O. �"' has created a bold concept ; ;- 'm�•0:..44P t..tw '�! ti ' 'i yI --4-" 1 that actually makes a promi .■■.... nent existing spillway on the Fox River the center _ . of attraction. By reconstructing part of the dam and directing the water into a man-made "bay," the river itself becomes the main focus in the plaza. nity map, fountains, spacious areas for special events and vendor carts. For kids, and kids at heart,a dragon- In addition to the natural attraction of the river, this fly sculpture rests on a concrete lily pad in the bay! plaza has something for everyone: abundant seating, river overlooks, colorful landscaping, a bronze commu- ' 1 . ., PROJECT D:I J 1 '— 1 K a__ ' Client: ,City of Waukesha �� r �- .. it s. �...: Contact: Frank Hedgcock (414)524-3750 " -_ . ..,*;_.___=---a H drolo / " - - - Civil Engine : R.A.' Smith&Associates _ _ - - ter-' Contractor: Burkhart Construction - Size; 5 acres _....i.'"�Const. budget: $1.7 MM t _ _ ' Status: Completed 1993 _ .,________________________ _ Hitchcock Design,Inc. Project Notebook Public Portfolio r L1 Frame Park Waukesha, Wisconsin Despite these challenges,Frame Park received the grant for a creative and environmental stormwater management system as designed by the Hitchcock eveloped as phase two of the Fox River Design Group Team. Master Plan,Frame Park will stand as the major riverfront park renovation in the Mayor Carol Opel puts it best when she says, "It's City of Waukesha. As the most active open-space near about time the City of Waukesha got the respect it the downtown business district,the major goal for this deserves and facilities it needs to provide the multi- team was to provide updated park and recreation purpose events necessary to promote community facilities for this very high-traffic area. pride." „�: .w...:- - �. - 3 Major elements incorporated into "•�' `�'�-- �.,,,e'� = - " the Frame Park redevelopment °"`± •, �"`'" * . I"';'-'7 ° F are: ` ' ❑ Multi-purpose paths,multi- purpose building for conces- 3 sions,restrooms,warming - house; boat house,observation »w j tower and floating piers. `' ` _ ❑ Improved recreation facilities, z I p ; including volleyball,ice ' ..z , 3 . .. skating/bocce ball court and , _- ADA-compliant playground. �'� �.- _. ._ �a ❑ Entertainment accommoda- t tions, including an amphitheater,arts& crafts display area and improved special events electrical PROJECT D i T,i system. , I Client: City of Waukesha 11' ❑ Numerous site improvements,including expanded Contact Steve Crandell parking facilities,artistic landscape lighting, 414/524-3750 pedestrian bridge replacement,identification and Consultants: R.A. Smith&Assoc ,' ' directional signage,native prairie/wetland Engineering Resource Assoc. plantings. Prisco,Serena''Sturm'Architects Size: 3,3001.f ';1;it1'11I11IIlil'I111;l'l rConst. budget: $2.86 MM Status: Est. Completion Sp. 1995 ©Hitchcock Design,Inc. Project Notebook Public Portfolio r '• Aurora FoxWalk Aurora, Illinois ..•�� 1 02321 ISIW Z L.1 r ncouraging so • .___ ____the citizens of v z: 1#±!aI+\s it\,":. „, ' Aurora to appreciate the .�"w = i recreational resource x they have in the Fox , R River, the City of Au- - . `-, — - rora, Hitchcock Design 1 4,,,:....: � p rpm ; Group and R.H. Ander- �,N,.. son and Assoc. are - - — preparing design plans for the FoxWalk to make the primary goals of this project. To institute these river a focal point of this revitalized downtown. goals, while providing for the safe travel of pedestri- ans, bicyclists and vehicles, Hitchcock Design Minimizing the impact on the hydraulic and environ- Group developed a series of plazas, overlooks and mental systems of the river while providing maxi- gathering spaces along the walk, of various scale mum access for all patrons were and detail. PROJECT DATA Access to the path is provided from all bridge crossings and adjacent buildings. Each block, while Client: City of Aurora having an individual identity, is integrated into the Contact: Amy McNally, overall FoxWalk design through consistancy in light Asst. to Director 844-5624 fixtures, planters, paving and railings. Size: 5,000 l.f. Status: Design Complete Winter, 94 As a community landmark, the Aurora FoxWalk Securing Regulatory Permits will raise community spirit and establish continuity r _ throughout Stolp Island. FfIchcock Design. . Project Notebook Public Portfolio C 1. Batavia Riverwalk Batavia, Illinois In 1986,a Riverwalk in Batavia was only a dream. Hitchcock Design Group,along with The Batavia Riverwalk Commission and the City of Batavia is making the dream a reality in 1991. Hitchcock Design Group's assignment was to reevaluate the program statement,update their original 1986 master plan,and to identify a phase one construction project. Many of the objectives and design criteria from the 1986 master plan have been retained. The Riverwalk will create a permanent centerpiece for downtown Batavia along the lagoon and Fox River shoreline. The major features are the reshaped pond,the main entry plaza, the amphitheater,various overlooks,a memorial plaza,a new stream connecting the pond to the river,and the water court. The features will be linked with a spacious paved walkway and complimented with amenities including lighting,benches,and landscaping. An arch stone rik bridge will complete a loop around the pond and provide access to the adjacent Fox River Trail. Phase one construction of the$3.5 million project is expected to be completed by December, 1992. 1.- a - ./s4. i vs4"�A� -yam Y• its ."Vit "yRs 4 -•r - r_= f { , '1071.• , ■ 'e----1 1 11 I .,11 r, - •* � i -v 9•.:A _ _ .,✓ .,; ��~.. �� ��' Noo\. �� ; . x i__ --- ' rod 1 •v >4 elk Client: Batavia Riverwalk Commission Engineer: Jim Bibby,Rempe/Sharpe Hitchcock Design,Inc. Project Notebook Public Portfolio r L Hobart Festival Center Hobart, Indiana a- . :1 .-14 0 ur master plan for the first phase of this r� •• ,f v ✓,r��,;.,.; major lakefront develop- } ` ment depicts a 10-acre 1` festival park as the _:...7. -,__.... , . .:''': ' ' r centerpiece of economic revitalization of the city's downtown area. The concept includes a - bandshell, amphitheater, __ , ,, sculpture site, landscaped --`. „: , shorcline walkway, and T,r terraced civic plaza s----"-.7” behind Hobart's City HMI. _ . __ 74....* _ .. }-.41,...;,,, -- We're gratified by the enthusiastic response of community groups to our presentatioas and graphic exhibits. The comment PROJECT D.-11:-1 below, made by Patricia Rees, former Executive • Director of the Hobart Industrial and Economic Client: Hobart Industrial Development Committee, reflects the city's supportive Economic Devel. Commis. attitude. Contact: Patty Rees Combs 219/942-5774 "Hitchcock Design Group has come up with a block- Size: 7.5 acres buster plan that has mouths agape. Their professional- Const.budget: $438,000 ism, thoroughness,and ability to answer questions and Status: Phase 1 completed 1988 dispel fears is simply unparalleled." . r Hitchcock Design,Inc. Project Notebook Public Portfolio r Naperville Riverwalk Naperville, Illinois What began in 1981 as an ambitious commemorative park project, marking the City's 150th birthday, has become the very centerpiece of community life. From the beginning, the independent volunteer steering committee, chaired by business leader James L. Moser,was determined to construct the riverwalk in much the same maimer as the local public beach, which when built in 1931 as a Centennial commemorative, used only voluntary contributions of labor, money and materials. That philospohy became overwhelmingly successful. Except for$200,000 provided by the City for start up costs, all of phase I, valued at more that $1,000,000, was financed through donations of professional time, labor, materials and cash contribu- tions from corporations, citizens and local organizations. No private property has been condemned and neither state nor federal funds have been used to support the Riverwalk. The benefits of the Riverwalk have become so well accepted, that its continuation is not only encouraged, but virtually demanded by the community. Hitchcock Design Group is proud to have played a major role in the design and development of this award winning project! o • • • r } ` '446V .a . . ° • ..S4'.• , e. •%—,• ! . r� t Awards: 1991 National Landscape Award American Association of Nurserymen 1987 Special Recognition Waterfront Center National Competition 1983 Gold Award Illinois Landscape Contractors Association 1983 Certificate of Merit American Association of Nurserymen 1982 Honor Award Illinois Chapter Am. Society of Landscape Architects Client: Riverwalk Commission Architect: Charles Vincent George Design Group Hitchcock Design Group,Inc. Project Notebook Public Portfolio lial La Grange Streetscape La Grange, Illinois I L ocated in the historic 1 1 14 central business district., — this downtown -p ► 'V • ' 1110 ' •streetscapc was planned from the .re r shopper's point of view. — „ „,„. 'through the use of slides and video imaging, Hitchcock Design Group took community groups and the Village Board on a trip to their new downtown. We showed them how a shopper would enter, park and circulate through the PROJECT D1i IA . business district. Client: Village of La Grange Because shoppers Contact: Bob Pilipiszyn were having difficulty 703-579-2325 in parking and Contractor Mart u:1 Construction °' --..t.,..::-re accessing retail shops, Size: 10 blocks .� •• Hitchcock Design Const.budget: $4.5 MM -' -• a, g g �.9 , Group separated retail Status: Complete Spring 1994 — y w and commuter parking 1 \f 4 I N!, areas by different styles of signage and landscaping. Unnecessary steps -- along curbs and front entrances were eliminated to allow barrier-free access into retail shops. Hitchcock Design Group also designed a linkage between the east 4" ,_., —w and west sides of La Grange Road through the use of crosswalks, plantings and other site amenities. Then,to tie it together,we imple- mented new furnishings to revitalize the look of this ten-block central business district. 0 Hitchcock Design,Inc. r NOTE: The attached contains excerpts from a market feasi- bility study conducted by Urban Discovery, Inc. for a proposed senior housing development in Belleville, Wis- consin. r e SUGAR RIVER HOLLOW Belleville, Wisconsin Senior Housing Market Feasibility Study CONTENTS L Introduction 2 IL Development Attributes 3 A. Anticipated Physical Characteristics B. Site Linkages C. Site Strengths and Weaknesses III. Market Area Delineation 12 A. Primary Market Area (PMA) B. Secondary Market Area (SMA) IV. Economic Analysis 15 V. Socio-Demographic Analysis 17 . A. Population e"""' B. Housing Profile C. Age Distribution D. Income VI. Demand Analysis 24 A. Absorption Analysis B. Capture Analysis C. Penetration Analysis D. Special Needs Population (Frail Elderly) VII. Supply Analysis 31 A. Comparable Multifamily Apartment Developments B. Summary of Comparable Properties C. Proposed Developments in the PMA D. Multifamily Housing Land in the PMA E. Certificates VIII. Market Study Findings and Recommendations 45 Appendix: _ A. Comparable Development Survey Sheets and Photos B. Demographic Data (1990 U.S. Census) C. Persons Interviewed D. Statement of Limiting Conditions � r I. INTRODUCTION • Scope of Market Study The scope of this market study is to identify the market demand viability for Sugar River Hollow Senior Apartments, a proposed 52-unit senior apartment development in the City of Belleville, Wisconsin. The developer of Sugar River Hollow Senior Apartments is Coldwell Banker Sveum. This market study will assess whether sufficient demand exists currently and within the near future for the introduction of 52 senior rental housing units into the respective housing market for the proposed development site in Belleville, Wisconsin. The market study will further assess the market demand compatibility for the unit rental rates and other project amenities associated with the proposed 52-unit senior apartment development. Project Overview The Project would be a newly constructed 52-unit senior dedicated apartment building in the City of Belleville, Wisconsin. The project would have 18 one- bedroom/one-bath apartments (approximately 558-810 square feet), aid 34 two-bedroom/one-bath apartments (approximately 900 square feet). The project would be .a two-story building with an elevator, and a combination brick, stucco, and aluminum siding exterior. Forty-six of the units would be set aside for households with incomes at or below 60% of the County Median Income (CMI). Five units would be set- aside at 30% of the County Median Income. Rents do not include electricity for lights and appliances, which based upon the U.S. Department of Housing and Urban Development allowances, is estimated to be an additional $18-$24 per month. Heat, hot water, water and sewer are included in the rent. The project is expected to begin construction in the Spring of 1995 with initial occupancy slated for late Fall, 1996. The projected rents are indicated on the table below: Unit Distribution and Projected Rent Structure Rent Est, Unit Adjusted Unit Type Size (SF) #Units $/Mo. Electricity Rents 30%CMI One Bdrm 558 6 $260 $18 $278 60% CMI One Bdrm 810 12 $544 $18 $562 Two Bdrm 900 34 $635 $24 $659 r 2 VI. MARKET STUDY FINDINGS AND RECOMMENDATIONS Sufficient potential demand exists for the introduction of 52 senior rental units into the respective housing market for the proposed development site in Belleville, Wisconsin. Additionally, the proposed Sugar River Hollow Senior Apartments appears to have compatible rental rates and the development amenities associated with the proposed 52-unit senior apartment development are equal to or are superior to the existing market. Overall, the projected market feasibility of the proposed Sugar River Hollow Senior Apartments is positive assuming the specific conditions are addressed. Below is a summary of the general findings and recommendations concerning the proposed development with respect to the market. Additional information regarding each item below is provided for in the body of the study. Development Size: The market demand appears to be sufficient to support the proposed 52-unit Sugar River Hollow Senior Apartments. The anticipated absorption period of the units would be 6 to 8 months from the completion of construction. This assumes construction would commence in the Spring of 1996 with completion in the Fall of 1996. This assumes adequate pre- marketing would occur prior to completion of construction. Pre-marking efforts must be focused in the western portion of the Madison metropolitan area. Projected Rents: The proposed rents for the Sugar River Hollow Senior Apartments are higher than the average rents in the immediate Belleville community; however, the Village of Belleville does not contain a multifamily development comparable in design and quality. A more accurate assessment of rents can be made with the comparable developments identified in the PMA. Within the PMA, the proposed rents for the Sugar River Hollow Senior Apartments for both one-bedroom and two-bedroom units are about 10 percent less than the average adjusted rents for the PMA comparables. This is in part due to some market rate units offered by comparable 45 I (1+- developments; however, the proposed Sugar River Hollow Senior Apartments rents should be consistently competitive in the PMA. Vacancy Rates: The overall vacancy rate of the units surveyed in the PMA was 1.0%. Only 4 units out of 471 units surveyed were noted as being vacant. In addition, a waiting list in excess of 352 persons was found in the comparable properties. This low vacancy rate and corresponding waiting list indicates a potential pent-up demand in the market. Evidence of the pent-up demand can be substantiated by two recently proposed senior housing developments in Madison which have both been almost entirely pre-leased prior to commencing construction. The 108-unit Chapel Valley Apartments in Fitchburg and the 84-unit Rosewood Apartments in Stoughton are both essentially pre-leased. It remains difficult to assess the extent of pent-up senior housing demand in the market without obtaining extensive primary data; however, for purposes of this market study, a reasonable amount of demand will be attributed to the waiting lists due to the evidence outlined above. To quantify the demand resulting from known waiting lists, we recommended adjusting the waiting list by 50 percent to reflect duplications and persons who may not be income eligible. This would result in an adjusted waiting list 176 persons (50% of 352) which will be used in the absorption analysis. Site: The site appears to be adequately suited for senior housing with the one exception that many goods and services desired by seniors are not within walking distance from the site. This site weakness can be overcome assuming a reliable and regular transportation program is provided by the development to allow residents to access necessary goods and services. r 46 It is the analyst's understanding that a transportation program will be offered by Sugar River Hollow Senior Apartments, yet the details of the transportation program have not be determined. Development/unit Amenities: Unit amenities, development amenities, and improvements all are either above standard or standard to the market. For the Belleville community, the proposed Sugar River Hollow Senior Apartments would greatly exceed the existing quality and design of most multifamily housing. Unit sizes and amenities will be directly comparable with many of the PMA comparables. Absorption Period: The anticipated absorption period of the 52 units would be 6 to 8 months from the completion of construction. This assumes construction would commence in the Spring of 1996 with completion elk in the Fall of 1996. The absorption period would occur from about 11/96 to 6/97. The projected absorption period is based upon the . following absorption analysis findings: Units 1) Pent-up demand; An adjusted waiting 176 list of 176 senior residents was found in the comparables survey (see vacancy above) 2) Migration of seniors in Belleville 30 from less competitive MF housing and single family homes. With nearly 700 households in the Village of Belleville area (much of which is in excess of 20 years in age), it would be reasonable to estimate that at least 3 to 5 percent of the households would migrate to the Sugar River Hollow Senior Apartments due to increased quality and design. This is a common trend in communities which have not experienced new multifamily housing for many years. 47 3) 1995 absorption demand 164 4) 1996 absorption demand 164 5) 1997 absorption demand (through 6/97) 82 Total Projected Capture Rate (through 6/97) 606 Less demand captured by planned developments in 1995 and 1996 535 Total Projected Capture Rate (through 6/97) 71 Penetration Analysis: It is estimated that there exists approximately 2,868 age and income eligible households within the PMA that could be captured by the proposed Sugar River Hollow Senior Apartments. The proposed introduction of 52-units in the project would need to capture about 1.8 percent of the households in the income eligible cohort. This lies within a reasonably acceptable penetration rate of 2 to 4 percent for senior housing based upon the relative size of the market area. Frail Elderly Penetration: The demand for frail elderly housing can be assessed utilizing a penetration rate analysis for the • age/income eligible cohort. Approximately 1,008 frail elderly households exist in the PMA which would also be income eligible. Applying the proposed 26 frail elderly targeted units toward the eligible households, a penetration rate of 2.6 percent would be required. Although penetration rates can be highly subjective, a penetration rate of 2.6 percent appears to be obtainable. r 48 NOTE: The attached is. an excerpt of materials produced from study of the Mt. Horeb Opera House, Mt. Horeb, Wisconsin by Urban Discovery, Inc. for Heartland Proper- ties . The materials are representative of a proper- ty/business pro forma which would be produced. • eft • e,, RECOMMENDATIONS 1. To maximize productivity, we suggest that the second and third floors are converted 100% into affordable housing units. We further recommend that rents be established at $410 for a one-bedroom apartments and $530 for two-bedroom ,4 °' '4 7"5 apartments. 2. If possible, renegotiate rental rates of retail tenants to market rates in line with the Hoff Mall upon renovating. /17' 48 frse 3. Make purchase contingent on recieving addtional funding from Mt. Horeb through the Community Development Block Grant. 4. Maintain historical integrity of building in line with community values. 37 • EXECUTIVE SUMMARY eik Introduction The following report is a feasibility analysis of The Mt. Horeb Opera House prepared for Heartland Properties by Wayne Elarbee, Tom McHugh, and Hans Rasmussen. Purpose of Feasibilty Analysis The purpose of this report was to determine if the aquisiton of The Mt. Horeb Opera House satisfied the requirements necessary for a project to be feasible We reviewed the following criteria in order to make a recommendation to Heartland Properties; was it physically possible, legally permissable,financially feasible, maximally productive, and staisfy community objectives. Site Analysis The site analysis was performed to determine if any barriers were evident that would make the project unfeasible. We reviewed the, physical, legaUpolitical, linkage, dynamic, and environmental attribtues in our site analysis. Delineation of Trade Areas Our first object was to determine the trade areas for both the residential and retail usages of the Opera House. The trade areas were required for projecting the need for market driven and affordable housing. The retail trade area was derived to understand the client base of the retail establishments for determining the proper mix of tentants for the Opera House. Comparative Analysis Once the need was determined for the various usages of the Opera House, a comparative analysis was performed to maximize the profitability of the residential and retail usages. This analysis was necessary for structuring the tenant mix in the financial feasibility section. Financial Feasibility We performed a Discounted Cash Flow Analysis to determine the servicable debt and justified equity investment for the tax credits. A financing gap was derived and manipulated under several different scenarios. This sensitivity analysis was performed to quantify the variance in the gap required to finance the project and still satisfy the required rate of return. r Conclusion The Opera House satisfied four of the five requirements in our feasibility analysis. The onl area of c•ncern is the financial feasibili of the •ro'ect. This hurdle can be overcome with the assistance of the local community. With additional funding from the Community Development Block Grant, the Opera House will generate the return necessary for Heartland Properties to proceed with the redevelopment. The community needs to understand not only the financial implications of redeveloping the Opera House, but also the intrinsic value of the property to Mt. Horeb. r • • • r • • FINANCIAL FEASIBILITY • Considerations Low-income housing tax credit(LIHC) projects provide a unique challenge for determining optimal financing structure and whether the optimal financial structure provides for a financially feasible project. Because of the lower rents typically associated with low-income housing there is going to be a "Gap" in the financing of a typical project. Section 42 low-income housing tax credits were created to help fill some of this financing gap and are never allocated in an amount greater than is needed to fund the gap of a particular project. The Section 42 Low-Income Housing Tax Credit of the IRS code sunset in June of 1992 and is currently on indefinite hold. Under the current tax legislation of President Clinton which has yet to be ratified, the Section 42 Low-Income Housing Tax e"` Credit Program would be continued indefinitely. The entirety of this analysis assumes the Section 42 Credit will be ratified and does not in any way consider the feasibility of the Mt. Horeb Opera House if it is not ratified. When the Wisconsin Housing and Economic Development Authority(WHEDA) •analyzes and scores a Section 42 application they determine what the financing gap is, and use this as part of the criteria for deciding whether to allocate low-income housing credits to a particular project: WHEDA has been chosen by the State of Wisconsin to be the administrator for the state's Low-Income Housing Tax Credit Program. In analyzing the financial feasibility of the Opera House there were many requirements and options to be considered. In order for an acquired property to receive tax credits it must have been held for 10 years by the seller, and must be rehabilitated at a cost of$3,000 per low-income unit or ten(10) percent of the depreciable basis of the building which ever is greater. The IRS does have the ability to waive the Ten-Year Rule, usually in the case of troubled properties, such as a building being acquired from a 27 defaulting insured depository institution. See Appendix D for the Section 42 Tax Code. Heartland Properties acquisition of the Mt. Horeb Opera House as currently planned would meet the criteria for the cost of acquisition tax credits. The cost of acquisition is eligible as the basis for a four(4) percent tax credit. In addition there is a nine(9) percent credit for substantial rehabilitation which must meet the criteria of the greater of ten(10) percent of the depreciable basis of the building or $3,000 renovation per low-income unit. This criteria is also met based on the proposed rehabilitation of the Opera House. Section 42(b)(2)(B) of the Internal Revenue Service Code describes the nine(9) and four(4) percent credits as the percentages that will yield, over a 10-year period, amounts of credit that have a present value equal to 70 percent and 30 percent of the qualified basis of the low-income housing project(Appendix D). The United States Treasury Department publishes the exact credit percentage each month, which can be greater than or less than the nine(9) and four(4) percent figures. After the percentage is established for a particular project it applies for the entire ten(10)year period. The owner may choose to use the credit percentage in the month that the owner and the State Credit Agency enter into a binding agreement to allocate the Credit to the building. Non low-income residential units renovation costs can be included in the eligible basis if their costs per square foot don't exceed the affordable housing units cost by more than fifteen(15) percent. If the costs exceed the fifteen(15) percent limit they can not be included in the eligible basis, but if they are below the limit they can be included as long as the costs above the low-income units costs per square foot but below the 15 percent limit are deducted. In a mixed-use property such as the Opera House all costs associated with (in proportion to) the commercial usage are not eligible for tax credits. Once the eligible basis for the tax credits are calculated the qualified basis is then found by multiplying the eligible basis by the proportion of low-income housing units to the total housing units. 28 a The Opera House tax credit calculations are further complicated, yet enhanced because it is a Certified Historic Structure(CHS). This entitles the owner to a twenty(20) percent federal tax credit for all eligible rehabilitation expenses. The Historic Structure tax credit can all be taken in the first year, unlike the Low-Income Housing tax credit which is taken evenly over ten(10) years. However, the amount of Historic Structure credit must be deducted from the eligible basis for the Low-Income tax credit and is also deducted from the depreciable basis of the building thereby lowering the depreciation expense and raising the tax liability in future years. Nevertheless, because of the time value of money and the greater value of a tax credit than a tax deduction, the Historic Structure tax credit should be used to its fullest extent. Another factor effecting the eligible basis for low-income tax credits is the use of federal subsidies. Federal monies reduce the available credit for substantial rehabilitation from nine(9) to four(4) percent. A building is not federally subsidized if the tax-exempt financing or below-market federal loan is used only for construction financing and this financing is replaced by unsubsidized financing before the building is placed in service(See Section 42(i)(2)(C) Appendix D). It should be noted, projects funded with Community Development Block Grant(CDBG) funds are not treated as federally subsidized and therefore are eligible for the nine(9) percent low-income substantial rehabilitation credit (See Section 42(i)(2)(D) Appendix D). Although tax credits are based on the proportion of low-income units or square footage a project has, the project must meet a minimum amount of low-income occupancy to qualify for any tax-credits. When a Section 42 Low-Income building is placed in service, the owner must irrevocably elect which set-aside test the building will comply with, generally by the end of the first year of the building's credit period. The owner can elect to have 20 percent or more of the residential units rented to tenants with incomes of 50 percent or less of HUD estimated county median income, known as the "20-50 set- "' aside" or 40 percent or more of the residential units rented to tenants with incomes of 60 29 percent or less of HUD estimated county median income (See Appendix E), known as the "40-60 set-aside." Choosing the 40-60 test allows for higher rents but requires more tenants to fall within the HUD income guidelines. The 20-50 test requires lower rents but allows for fewer low-income tenants and scores higher points in the application process for the allocation of low-income tax credits because you are providing housing for even lower income households. This can be important because the allocation of tax credits through WHEDA is a competitive process. Upon acceptance as a Section 42 Low-Income Housing project the building must remain in compliance for 15 years, and there is usually an extended compliance commitment for up to an additional 15 years for a total of 30 years. According to federal tax law, tax credits can only be taken by the owner of a property, which includes a long term lessee if the economic benefits and burdens have shifted to the lessee. Because developers usually do not have enough other income to use tax credits and non-profits don't have any tax liability it is important that the project has someone who is willing to purchase the tax credits and therefore provide much needed equity to help fund the project. It is generally advantageous to set up a limited partnership so the investors will have ownership in the project which is required to use the credits, but will also have limited liability. Partnerships themselves are not taxed on their income but the tax liability passes through to the partners who can in turn use the tax credits, and the general partner can retain control of the project. A limited partnership also has the flexibility to allow various distributions of tax credits, income, losses and gains. Whether in a partnership or not the type of owner has a important impact on the use of tax credits. MI tax payers can use tax credits to offset taxes on passive income. . However, other types of income are restricted. Individuals are restricted under passive loss rules to only using tax credits up to a tax deduction equivalent of$25,000. For example in the 28% tax bracket you would be entitled to a $7,000 tax credit, 28% of 30 $25,000. Unused credits can be carried forward. When the property is sold unused credits can be used to offset ordinary income. S corporations and personal service corporations can also only use credits against passive income so are not likely purchasers of tax credits. Closely-held C corporations(five or fewer shareholders who own 50 percent or more of the company stock) can use the tax credits to offset passive and active income but not portfolio income, therefore they are somewhat more likely purchasers. Widely-held C corporations are not subject to passive loss limitations and are therefore the most likely purchasers of tax credits. For these same passive loss limitation rules C corporations are also the most likely beneficiaries of depreciation deductions because they are passive deductions. Selling the credits directly will usually result in a higher price in the range of 50 to 60 cents for every dollar of tax credit allocated. Where as, selling through a syndicator or broker who will require a profit or commission results in a faster sale but less net proceeds of maybe 40 to 50 cents on the dollar, producing less equity for the development. Methodology In determining the financial viability of a Low-Income Housing Project it is necessary to determine the net operating income the project will be able to generate. From this NOI we can back into the debt service that can be covered and therefore the amount of debt attainable given certain underwriting criteria. In a typical Section 42 project there is a trade off between having more low-income units which increases the tax credits available and providing more units rentable at market which increases your operating income and therefore the amount of money you can afford to borrow. However, as we have seen in the supply and demand analysis and the competitive analysis, the market rents in the Mt. Horeb area are generally not significantly higher than the maximum rents allowed by the Wisconsin Low-Income Housing Tax Credit Program 31 especially under the 40-60 set-aside requirements. Therefore it would seem logical to designate/lease as many units to low-income qualifying families as possible to increase your eligible basis, tax credits and therefore the amount of equity available for the project upon the sale of the tax credits. Once we have established the amount of tax credits the project will generate and the likely purchasers and purchase price of these tax credits we back into the equity that will be available for the project. Adding the equity from the sale of the tax credits to the debt amount serviceable from our operating income and then subtracting the total from the project budget leaves the financing "gap." It is the ability to finance this gap that determines whether or not the project is feasible and plays a critical role in determining whether or not WHEDA will approve the application for Section 42 Low-Income Housing Tax Credit. It is important to remember that there is very little excess income to pay for more debt and no cash flow to justify equity investment. This means that for the project " to cash flow there will need to be an infusion of"free" money or at least "very cheap" money. We must be careful because federal subsidy or below market loans reduce our tax credit percentage from nine(9) percent to four(4) percent thereby reducing the equity we could generate from selling the tax credits. However, Community Development Block Grant money does receive special consideration and does not reduce the tax credit percentage and therefore should be the first place we look for financial assistance. Of • course a public entity such as a city or county will need to apply for the CDBG money and allocate some or all of it to the low-income housing project. Financial Gap Sensitivity Analysis In order to analyze the financial feasibility of the Mt. Horeb Opera House we put together a discounted cash flow spreadsheet that would allow for easy manipulation of all the variables, inputs and assumptions. The sensitivity analysis in this framework was not 32 FROM :M. P. PTO OCC 1 706 468 7996 1995.10-16 15:50 #036 P.09/12 . 061.-10-177.0 iJ•ii J. uua•..1MAML wdaMI . -+•� to determine the effect of variable changes on the project value,but how fluctuations would effect the financing gap and the potential for covering it. Our primary objective was to minimize the financial gap that remains alter backing into the debt and equity amounts based on our assumptions and inputs. A summary of the discounted cash flow analysis included in exhibits 15 and 16 shows how sensitive the financing gap,net present value of the cash flows and cash-on-cash returns are with regard to changes in various variables. As you move from left to right across the summary page and then from exhibit 15 to exhibit 16 the variables which physically changcd(only one type in each results column)are shaded. Any variables unshaded which change is due to the changing of the shaded variables. The first column in exhibit 15 reflects the market rents Heartland ' Properties would hope to charge, market underwriting terms of nine(9)percent interest amortized over 30 years with a debt coverage ratio of 1.20. These terms and the net operating income determines the debt amount of 5357,258 along with an equity investment of S251,902 which is derived from a selling price of 60 cents on the dollar for "` the eligible tax credits which provides a return of 18.02%. An 18% return is reasonable for this type of investment but leaves US with a gap of 5446,933. A mort typical proportion of debt to equity to gap, and what WHEDA would look for in selecting a low- income project would be 1/3 each_ This indicates our project under the criteria shown in • the first column does not provide enough self-financing. In column two the retail rents are lowered to the amounts currently paid by the tenants,most of whom have a lease through 1995 which is reflected in the full spreadsheet in Appendix C. Column three is very significant as the 2 market rate apartments are changed to low-income leaving us 5 one-bedroom low-income apartments whose rents have been raised to 5410 per month, and 3 two-bedroom low-income apartments whose rents have been raised to$530 per month. These rent amounts were derived by taking 25 percent of the monthly income for one(1) person households at 60 percent of the county median income for the one bedroom, and 25 percent of the three person household income 33 FROM 1M. P. RRM TO OCC 1 706 466 7998 1996.10-18 16: w iu i��v i.r•w w.., a-.,.. ..�....., 60 #036 P.10/12 rik for the two(2)bedroom apartmcnts(See Appendix E). 25 percent is a HUE)guideline for the amount people should pay who are renting apartments. Column three is significant because even though we are using 100 percent low-income housing which theoretically lowers our operating income and therefore the debt we can service,the added eligible tax credits increase the equity that we are able to raise. Based on the HUD income numbers used for low-income guidelines and the rents discussed in our demand, supply and competitive analysis we feel these are very realistic rents for low-income housing in Mt. Horeb and are therefore retained throughout the rest of the financial gap sensitivity analysis. Column three is also the summary numbers from the example full spreadsheet in Appendix C. Although maybe slightly conservative this is arguably the most realistic scenario. The underwriting terms are at market,the retail rents are actual and the apartment rents are derived from HUD numbers and a range of comparable rental units. The tax credit purchaser is receiving 16.15 percent which is probably on the low side for this type of investment,and is therefore providing a fair amount of equity for the project An acceptable rate of return for Heartland Properties is more in the 18 to 22 percent range. However, the gap has only dropped to$419,972 which is still well above the one- third split we would like to see. The only questionable assumption might be the expense growth rate which is only three(3)percent and equal to the income growth rate. Low- ; income households often have incomes which grow more slowly than expenses. Yn column five the low-income housing credit percentages are raised from 3.75% to 4.00%for acquisition cost and from 8.75%to 9.00°/,for substantial rehabilitation costs which is the current guidelines. These also remain constant through the rest of the analyses. Starting in column six we change underwriting criteria to increase the debt that can be serviced thereby lowering the gap. The question then becomes a matter of how • realistic it would be to acquire a loan at these terms. 34 elW FROM eM. P. PTO OCC 1 706 468 7998 1996.10-16 15:51 I$03$ P.11/12 In column thirteen and fourteen we increase the price of tax credits to increase the equity received and of course reduce the gap even further. Finally in columns fifteen and sixteen we increase the expenses growth rate so that for the first time it is above the rent growth rate. This is a very likely scenario because low-income households typically have little income growth from year to year. This does not effect the gap at all but does significantly lower the NPV's and IRR's. Conclusions arltecommendations Based on the financial feasibility,comparative analysis and market research of this analysis the Mt. Horeb Opera House should elect the"40-60" set asid This would allow for maximum low-income rents which still meet uir...m;tnt,t121ititseantly lower than no► •w-income r_� -• .n I- . :. _, i•h operating income to service the maximum amount of debt while still allowing for a maximum amount of tax credits to sell for equity. Following this same logic the Opera. House should strive to rent all eight of the apartments as low-income housing to maximize the tax credits available.The market rents attainable are not significantly high enough to overcome the advanta-es of the•i . • .' •'t from the I• .=a h•,: •• Even ifeight units can't be rented as low-income they all should be renovated at costs within the __•I yercent range to include the oats in the el'_'• • r M- •, s•_ • •'ts. The actual financial feasibility of the project is dependent on the availability of financing for the"Gap". We have shown there is no feasible way to cover this gap without the help of public monies. The most beneficial type of public money would be a Community Development Block.Grant because as discussed before projects funded with CDBG funds are not treated as federally subsidized and therefore are eligible for the full nine(9)percent credit. Also,in order for WHEDA to accept the project far Low-Income Housing Tax Credit the application will have to show that with an pp acceptable amount of 35 • I - FROM eM. P. I MCiTO OCC 1 708 468 7998 19'95.10-18 15=51 #038 P.12/12 —1 a' egibk tax credits the project would be financially feasible. Therefore,Heartland Properties will have to show they have third party£lancing,such as CDBG funds,to cover the financing • gap shown in this analysis. Currently,Mt.Horeb is in the process of applying for a Community Development Block Grant and would consider dispersing a portion of the proceeds to the Opera House project. It is not the function of this study to determine the economic justification for ML Horeb to contribute CDBG monies to the Opera House project,although based on the trade area analysis of the Opera House there is a significant ripple effect to the Mt.Horeb area economy generated from Opera House patrons, and a definite intrinsic value to the village. 36 F VITAL P.14 a PRELIMINARY DRA xenon far Review and Discuss.Irede !M9 D 1;contain eli e - . URMN;DISCOVERY :; ( Heat: d ptopeTt1 :, > SI1NWiARII MONTHS IN FIRST YEAR 12.0 FIRST YEAR 1995 DATE PLACED IN SERVICE 01-Jan-95 ' -t i .1. NrOMEASSSULIEBONS: (Dan*County-10%) Year: ITS 8 le TS I of U_nite Sq.Footage Initial Rants Wily Allow. Net Rent minty Ma. %of Max r UALIFYING UNITS 7 -SE�fIblTYt - - -- -- - ICAOLE FRACTION 87.50% 0 Bedroom 0 C 0 0 0 0 • 6r SERVICE COVERAGE 1STMORTG, 1.150 1 Bedroom 5 0 495 40 535 567 94.36% • NUAL RENT INCREASE: 300% 1 Bedmorrr 0 0 0 0 0 0 EXPENSE INCREASE. 4.00% 2 Redroom 2 0 595 50 645 681 94.71% EAL ESTATE TAX INCREASE: 4.00% 2 Bedroom 0 0 0 0 0 0 NUAL SECTION 42 CREDITS 67,141 3 Bedroom 0 0 0 0 0 0 EDERAL HISTORIC CREDITS 183.671 3 Bedroom 0 0 0 0 0 0 OTAL DEVELOPMENT COST/PER UN 1,215.665 3151.958 TOTAL Z Z LI II6 sffi JUAN 51741 9.55% ES PRICE-CAP.RATE 1000% • •IRR r� --„�6 71% MARKET RATE • 0 Bedroom 0 0 0 18edrpan 0 0 0 ENINIGING'. INTEREST AMORTIZATION MONTIR.Y 2 Bedroom t 0 600 NCTIMi5TANDAB121; Limits Sliosivil Actual PRINCIPAL RATE PERIOD TERM PAYMENT 3 Bedroom 0 0 0 General Requirements 6% 41.696 0 MORTGAGE $iT:000 10.25% 30 30 - 1,496 TOTAL 1 0 --g4Il CanlcacfaOverhead 2% 13,899 48193 2NDMORTGAO 30 000% 0 0 30 ConUador Pmfil 6% 41.6% 0 AMORTIZING LO SO 000% 0 0 30 8 7 34.265 Construction s•penrision, 15% 167.395 99,698 LAND LEASE $0 000% 0 0 10 MANAGER UN 0 0 0 Developer tees&overhead .NON AMOR LOA 3350,000 000% 0 0 30 NON AMOR LOA 30 0.00% 0 0 30 GRAND TOTAL I 1 14.288 GRANTS SO 0.00% WA WA WA GEN PTRS LTD PTT4$ R111)6610111 30 0.00% 0 0 SO ALLOCATIQNS: • CONSIRUCTION 51520.000 9.75% 9 VACANCY YEAR 1 YEAR 2 THEREAFTER INC&LS 100% 49 007E Residential 1042% 500% 500% TAX CREDITS 1.00% 30.00% EXEE SF3• YEAR_ runt DIEM Cornreeruel 0.00% 000% 0.00% CASH FLOW 5000% 5000% RESIDUAL 5000% 50.00% ADVERTISING 3100 13 REALLOCATE LOSSES (yes 1.no0) 0 MANAGEMENT 4.00% 3.1794 387 EOUITY CONTRIBUTIONS 36.987 *191.676 HPI CASH MANAGEMENT FE 1.50% 1,160 145 TOTAL /1DMINISTRATNE 1.920 240 QTTERINCQ E(PER UNIT PES]14NTT1t 31 IX) OFFICE EXPENSE 0 0 PMT SCFD 01-Jan-95 691,670 AUDITING 2,500 313 --_.STM LS 01-Jarr-96 0 PA NOUS AUTH COIILLANCE 125 200 25 RIQNG. 30 30 01-Nan-97 I) NM COMPLIANCE FEE 1.00% 770 96 . REPAIRS AND MAINTENANCE 2,500 313 _ RATE GAP 0 '--408656' IJECORATINO o o COSIIEBQ L.PIGQME: 327,617 �f7 40 r. PEST CONTROL 0 0 GROUNDS EXPENSE 0 0 T DEESECIABLELNIES TAX ELEVATOR O 0 3.732 -30 00 NOR AMJRTIZ ELECTRIC 1,500 188 ITEM PERIOD PERIOD GAS 0 0 VI1EAESLMIE-RESEMOES: 2 50% WATER&SEINER 0 0 RESIDENTIAL COSTS V.5 40 SNOW REMOVAL 0 O ASr$INLER-7AaBBAC1(ETS: COMMERCIAL COSTS 39 40 TRASH REMOVAL 2.000 250 FEDERAL _ STATE LAND IMPROVEMENTS 15 IS INSURANCE 2,000 250 INCOME&LOSS S5-6611,-- 000% PERSONAL PROPERTY 7 12 REAL ESTATE TAXES 10,400 1,300 CAP GAIN 3500% 0 00% ORGANIZATION COSTS 5 5 MISCELLANEOUS 0 Q PASSIVE LOSSES 35.00% 000% MORTGAGE COSTS 30 30 (0'NO;1eYES) 1 TOTAL OPERATING EXPENSES 26 144 3.110 • 0 SELLING COMM.AND COST OF SALE 600% ANTILLSLEEPLACEMENLIIESETWES. $2000 PROPERTY OF HEARTLAND PROPERTIES.INC. ••• PRELIMINARY WORKSHEET FOR DISCUSSION PURPOSES ONLY Paps I °'x101' 1 Fw. irr_110REA.WK4 a <, ,Y P IM1MED QRAEI 7 !l� C�'�PµE�RA,nOil"SE> for Rw1ew��e piacus$1on ... Y.. • ' r `tom.' 11$rrnlr.: .. :: oere>S�It SECTION 42 CRS CREDIT Disclosures SallSONLSEEL.CONSIL —Subject to Change— APPLICABLE FRACTION 87.50% 117.50% FEDERAL STATE (] Heartland Properties Inc.ANNUAL CREDIT RATE 3.74% 6 73%20.00% 0.00% r ELIGIBLE COSTS 140,733 748,039 918,105 918,105 QUALIFYING COSTS 123,141 654,534 918105 918,105 ANNUAL CREDIT AMOUNT 4,605 57,141 183,621 0 MOUS AUDI.ALLOCATION 10000 500,000 NA NA ALLOWED CREDIT AMOUNT $4,606 $57,141 $163,621 $0 EOUfTY GAP CREDITS $84915 • ' 1906 1986 1997 1996 19911 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 • Low-r9COMt CREDIT - $55,312 1,74 ,146 261,746 $61,746 $61,748-6i3i6 i.7s6 1;746 961,746 *6.434 'so to $0 so io CIS CREDIT 163,621 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ANNUAL CREDIT �i3a�931—ai't:46 $61 46 46 t.i4c 381746 •1746 $61 746 x61746 $61 746 $0.434 so $0 $o >A $o GENERAL PARTNER $2,369 $617 $617 $617 $617 $617 961: 3817 $617 $611 $64 $0 $0 $0 $0 $0 LOAIfEDPARTNER 236,541 61,129 61,129 61,129 61,129 61,129 61,129 e1.Tn, 61,129 61.129 6,370 0 0 0 0 0 $tae-9x3 ss1 4 4----W 746--161.746$61746 $61746 46 $61 146 7446 $61 746 $6434 *o sow- so so *o ' Ranr1 UP Schedule • Equity Gap Csla4alion 1995C.w+TFdn L Wrtn L �� wa l UPI _I oa-T 1 64—c—11—Taal 1 Unix Rented 4 1 1 1 1 0 0 0 0 0 0 0 TOMRaated 4 6 6 7 8 8 6 a 8 a 8 2 rRtalProprfco.t, 1.215.565 Less CNS Federal (183,621 Average Rein 533 533 533 533 533 533 633 533 533 533 S33 533 Less Commercial (70,367 Loss Total Units Avail 6 8 6 a 8 8 8 8 a 8 0 0 96 tins Gr•ants (517.000 ay Gross Rat 4,265 4,265 4,265 4,265 4,265 4,265 4.265 4,265 4.266 4,265 4.265 4.265 51.180 Plus CHS Credit Comm 10.629 29,926 Vacant Un 4 3 2 1 0 0 0 0 0 0 0 0 10 Pius Financing Comm its Rent WM= 2,133 1,599 6 533 0 0 0 0 0 0 0 0 5,331 Total Cq iy Regwed 405,231 1006 Pero i4 alto.Mmes 67.50% Nat Rent 2.133 2,OB_6 3199 19,,...L.....2....._...._...4732 4,265 4,265 465 465 1265 4 265 1 265 4 265 45849 Eq ly required for U lkt 424.577 OmgscpPerc 5000% 62.50% 75.00% 87.50% 10000% 10000% 10000% 100.00% 100.00% 10000% 10000% 100.00% 89.58% 82110 1996 r—.214-76. I M th I P w' I M s-i r A.1 e _I July ( A u g J Ssw T `'d--I--"-or . I Dec j Taal_ - WAILS units Ren$md 0 0 0 0 0 0 0 0 0 0 0 0 Total Ranieri 8 a a 8 8 a e 8 8 8 a 8 96 Vacant tints 0 0 0 0 0 0 n o 0 0 0 0 Ran toswac 0 0 0 0 0 0 0 0 0 o 0 0 0 Net Rent _ 4269 4.269 ■.285 42GS s.265 4.289 4,265 4,265 4,265 4 265 4,243_5 4,265 st,too Occupancy Pero 100.00% 10000% 100.00% 10000% 100.00% 10000% 100.00% 10000% 100 00% 10300% 100 00% 10000% 10000% Credits $61,746 $0 10 $0 $0 SO $0 s0 s0 so so s0 $61,746 PRROPF-wn OF HEARTLAND PROPERTIES,INC ••- PRELIMINARY WORKSHEET FOR DISCUSSION PURPOSES ONLY P0002 • —..) P117LIMINARY tst)1:136r 011/30104 for Review and Di 9_HOREB.VAC4 DOC3 not Contain all Required 'i.,;.;::?1:i-,,..:...:.ii:::',:;f-;',1:::.,.::::;4:-:::::::Zi .i:V...:g.:',1V.::::40af:•.::::::::: ::::::::::::::::::::::::*: :::::::::4.'n::::::::::-:::::::::::::::::0.:: ::::::. ... .r4..A1i4t: EAVf. r.......:;:.:...:.:::::..::::::-::::::::•::::::::::::::i::. :.,...::.::.:::::.•.i...:-.....::::......:::::::::',.•.::::::.f-.::::::-:,:::::::::::::':::: :Subloct.titittiniiifit.,;;,-. .:i . .;......*::.ii.::::::,:::.:::::::.:::::i..,F::-::::;',.;::I:..]:•::W...4.fS.,:iiii.Y..gi..;:.i.::::::,. ..t.i:: ::::::::-..:::::,:.... :i :::::...;':::i:.:::::-.::-::::::.:.,:,...;::::„...... .:'.... .: ...:. .::.:::: ........co$1:. . : :-..:::. • : . :'..':• :. :7:-: :.,..•:::.. .•••,:.:•.' .L.24.86.444thit4holi4t11.4;".-....-.:,::::',...., 0 1 o I REHAB? (I mYES.OwN0) (I YES,OnNO) (1.YES,O•NO) (1.YES.0=NO) . Total BUILDING CHS .Eligible Basis by rate Cost Residential Commercial Land Impr. Personal Pro AmortizNonamort Eligible Grants 4% 9% PURCHASE OF LAND a BUILDING: . • LAND: Land-Aquisition $38.900 $0 Demolition 0 0 Total land 38.900 . 0 — ., SITE IMPROVEMENTS: Site work 0 0 0 0 0 0 Off-site improvements 0 0 0 0 0 0 0 Landscaping 0 0 0 0 0 0 0 0 Land Improvements 0 0 0 0 0 Sewer and water 0 0 0 0 0 0 Total site improvements 0 0 0 0 0 0 0 0 BUILDINGS: • Rehabilitation 620.346 620,346 0 620.346 0 0 620,346 Construction contingency • 37,135 37.135 0 37,135 0 0 37,135 Contractor overhead 48,393 48,393 0 48,393 0 0 48,393 Contactor Profit 0 0 0 0 0 0 0 General mquirements 0 0 0 0 0 0 0 Parking 0 0 0 0 0 0 0 0 0 o 0 0 0 0-- Total bulding 705,874 705,874 0 705874 0 0 705,874 PERSONAL PROPERTY 13,555 0 0 13,555 0 0 13,555 • DUSTING STRUCTURES 211,100 140,733 70,367 0 140,733 0 TOTAL HARD COSTS $969,429 $846,607 $70 367 $0 $13,555 SO $0 $705,874 $O 5140,733 $719429 • • • . PROPERTY OF HEARTILAND PROPERTIES.INC. ••• PREUMINARY WORKSI LET FOR DISCUSSION PURPOSFS ONLY Pace 3 ".. . ' PRELIMINARY DRAFT for Review and DlscusbiBi 71"-WIREaWk4 minviv:// Does not Contain all Re. Ir.d } . S�'Yf Zi } } E IIOUSz. i 4. } i k} AM�Y;j�. -L>� X �`h } • � I'tLpePtltiSf fl'��': .. .. Total BUILDING CHS Eligible Basis by rats Cost Residential Commercial Land Impr. Personal Pro Amo.tlzNonamort Eligible Grants 4% 9% SOFT COS..T5 Sponsor development fee $18,522 $18,522 $0 $18,522 $0 $0 $18,522 Development fee $81,176 71,176 0 10,000 71.176 0 0 71,176 Tax credit fee 4,305 3,627 3,627 0 3,627 0 0 3,627 Accounting I Legal-building - HPI 12,500 12,500 0 12,500 0 0 12.500 Miscellaneous Buiding: Architect 3 engineering fees 20.000 20.000 0 20,000 0 0 20,000 Developer attorney 8,500 8,500 0 8,500 0 0 8,500 CW1,Ultants-engineering 0 0 0 0 0 0 0 Constnretion insurance 3,900 3,900 0 3,900 0 0 3,900 Construction interest 44,606 44,606 0 44,606 0 0 44.606 Construction loan orig.fee 1.00% 12,200 12,200 0 12,200 0 0 12,200 Reel estate taxes 3,700 3,700 0 3,700 0 0 3,700 Appraisal 2,500 2,500 0 2,500 • 0 0 2,500 Markel study 2,000 2.000 0 2,000 0 0 2,000 Environmental reports 2.500 2,500 0 2.500 0 0 2,500 Title and recording 1,500 1,500 0 1,500 0 0 1,500 Surveys 2.500 2.500 0 2,500 0 0 2,500 Cost certification 2,500 2,500 0 2,500 0 0 2,500 Trani r Fees _ 0 0 0 0 0 0 0 Total mist.building 106,406 106,406 0 0 106,406 0 0 106,406 10,000 Financing Fees&Expenses: Mortgage Closing Costs 0 0 0 0 0 0 0 0 Letter of aedit 0 0 0 0 0 0 0 0 Origination tee 1.50% 2.505 0 0 2,505 0 0 0 0 Other-Title 500 0 0 500 -- 0 0 0 --- 0 Total financing lees 3,005 0 0 3,005 0 0 0 0 Organization-tegeYacctg-HPI . 4,000 0 0 4,000 0 0 0 0 Syndication-legalacdg-HPI 90000 0 00 0 3.000 0 0 0 0 Rent-uplmerketin9 Rent-up reserve . 10,000 0 0 10,000 0 0 0 0 tM,dr ng capital reserve 0 0 0 0 0 0 0 0 Debt service reserve 0 0 0 0 0 0 0 0 Total sot costs 246,236 212,231 0 4,000 27,000 212,231 0 0 212,231 Total development costs $1 215 665 31058,838 $70,367 $0 $13,555 _ $7,005 $27000 $918 105 $0 140,733 931,660 Less: CI4S credit (183,621) 0 (183,621) Plus: Oust Census Tract Adjust(1■Yes,0=No) 0 . 0 TOTAL ELIGIBLE BASIS 3140,733 ___$746_039 - 9 PROPERTY OF HEARTLAND PROPERTIES,INC. • • PRELIMINARY WORKSIIEET FOR DISCUSSION PURPOSES ONLY Pepe 4 16-Oct-95 124 S. Pinckney Street Proforma Analysis Revenues: Investment Parameters: Per Sq.Foot Square Net Annual ` Anticipated Redevelopment Cost $1,100,000 $73.33 Eta Rent PSF Increases Less: Justified Loan Amount $752,682 $50.18 Urban Discovery,Inc. 2,500 $8.00 2.50% Less: Justified Equity Investment $202,209 $13.48 Bank One. 3,500 $9.00 2.50% GAP(Public Assistance)Needed $145,110 $9.67 IBM 1,500 $9.00 2.50% AT&T 2,500 $9.25 2.50% Anticipated Interest Rate of Loan 10.00% State Farm Insurance 1,500 $10.00 2.50% Loan Amortization (Yrs) 15 Searbuck's Coffee 500 $12.50 2.50% Loan Term(Yrs) 5 • Hollywood Video 3,000 511.00 2.50% Total 15,000 Anticipated Inflation Rate 3.00% ' Required Debt Coverage Ratio(DCR) 1.25 Required Return to Investor 12.00% Expenses: PSF R E Taxes $2.00 Insurance $0.20 Justified Loan Amount: Cotnrnott Area Maint. $0.65 Total Expenses $2.85 Net Operating Income(Yr t) $121,325 (A) Management Fee 5.00% Divided by DCR 1.25 Cash flow available for Debt Service $97,060 (B) Structural Reserve $0.20 Divided by Debt Service Constant 12.90% Justified Loan Amount $752,682 Justified Equii,investment Vacancy I. 5.00'/s For All Tenants l Cashflow Available for Equity Return 24,265 (A)-(B) Divided by Required Return to Investors 12.00% Justified Equity Investment $202,209 I . 1' 1 124 S. Pinckney Street Cashtlow Analysis Year 11 Fiscal Year 1 2 3 4 s 4 7 a 9 10 II RentlSF Revenues Us/en Disoouety.Lac. 70,000 20,500 21,013 21,531 22,076 22,621 21,194 23,774 24,368 24,477 25;602 51014 Bea Oat 31.500 12,211 33,095 33922 34,770 35,639 36,530 37,444 31,300 39,339 40,323 S1132 ' IBM 13,500 13,138 14,113 14,538 14,901 15274 15,656 16,047 16,441 16,860 17,261 61151 ATRT 23,123 23,703 24296 24.903 25,326 26,164 26,1118 27,411 28.176 28,880 29,602 611.84 Stale Fame lismeete 15.000 15,375 15,759 16,153 16,517 16,971 17,393 17,830 18,276 16,733 19,201 S12.40 Slslasks Oahe 6,250 6,406 6,166 6,731 6,199 7,071 7,248 7,429 7,615 7,005 1,001 S16.80 Hollywood V1ds 33,000 33.121 34,671 35,537 36.426 37,336 38,270 39,227 40,207 41,212 42,242 314.48 Expanse Resnais(Net Lena) 42,750 44,013 45,353 46,714 42,116 49,559 51,046 52,577 54,154 35,779 57,452 vweryAllawase (9.2369 (9.498) (9,747) (10,002) (10,264) 40.522) (10•10t) 01,091) 111,3511 4.679) (11•915) Net Reseauai 173,869 180,469 165,189 190,035 195,007 200,111 205,349 210,725 216,243 221,907 227,719 Iapetus Rd Estate Taus 30,000 30.900 31,877 32,782 33,76; 34,771 33.222 36,8% 38,003 39,141 40,317 laltsaux 3,000 3,090 3,113 3,278 3,377 3,471 3,583 3,690 3,000 3,914 4,032 Co mo%Asa Miasmata 9.710 10,043 10,344 10,634 10,974 11,303 11,642 11,991 12,351 12,722 13,103 MaoaleataeFes 1,793 9,023 9,259 9,502_ 9,730 10,006 10,261 10,536 10,112 11A93 11,321 Total Operating Lemma 51,543 53,0% 34,613 36,216 57,866 59,563 61.313 63,113 64,967 66,174 68,131 Stronsal Mauve (3.000) (1•90) (3,113) (3278) (3,317) (3,471) (3,302) (3,690) (3,800) (,914) (4,032) Nd Operating keeate 6121,223 $324,123 6127,394 3130,543 5131,765 .5137,009 5140,454 S143,922 5147,476 8131,118 5154,1149 ICRABAER • B R O T M E A S Kraern,r Brothers +rtt: 925 Perk Avenue Pain WI 53577 606.5462411 fax 608.546.2509 NERAI CONiRAC'OR October 17, 1994 URBAN DISCOVERY INC ATTN TOM WEIGAND 124 S PINCKNEY STREET MADISON WI 53703 • • Re: Mt. Horeb Opera House Mt. Horeb, WI Dear Tom: Thank you again for the invitation to tour the Opera House several weeks ago. Base upon our brief tour, and subsequent conversations with Jim Read, we have reached the following conclusions with regard to a possible "thinking" budget: 4 Units with Loft $70,000.00 $280,000.00 4 Units without Loft $50,000.00 200,000.00 Common Space 90,000.00 Exterior Walls/Roof Repair 30,000.00 Storefront Renovation 40.000.00 TOTAL CONCEPT BUDGET $640,000.00 The above figure does not include architectural/engineering fees. It is important to note that once preliminary plans are completed, more detailed budgeting can be accomplished. Sincerely, KRAEMER BROTHERS INC Dave A Vandewater Project Manager DAV:je 1 vf`irr IF ' &Nrr u 3 (NITaC. UNIT n&n 111141a N 0/..1...1V z• 3TofA:f C= II Tbri-Y ) frl-CV 14)'11 a . SAM VI_ f no P 11.,►2.0 • _ .. & vrri. ;I iz p 1 t Ns. • 8 c i ~ A i39 lai D > v _a, o ©o ta�OE i© �int? ow. a 11 • 0 BED MP IMP BEA Lag. dump 10 Il1alz (1102. for It ! II- 1 14 1� 1111! > IIII I rl u VNc7 k Kubala Washatko Architects,Inc. Mount Horeb Opera House N69 W5289 Columbia Rd. Third Floor 1/8"= 1'-0" Cedarburg,WI 53012 • (MIT AN 01 ft rDM van- we u irr 17 t L-11./f MINI shME- si II �� �v. uV _ . -... a. 0 i ' ^ a !O 1 Pi N FE k. , • u,r4 o r141111 11 I � �� - ©r IN, c "mg C... pp,k il j / sEO O y 4* 01 DD 1360 i 11y tt 11 lilt. MO 103114 DIN. UV. > I�X14 4111 I I, r . UNIT ,..... Mount Horeb Opera House Kubala Washatko Architects, Inc. Second Floor 1/8"= 1'-0" N69 W5289 Columbia Rd. Cedarburg, W1 53012 r PRELIMINARY DRAFT 08/30/94 for Review and Discuosion�d. MT_HOREB.WK4 Does not�l`closu o�� THE OPERA HOUSE Subject Id-Charily/ues a-- d po 0tPTO rt1 ,1Ci4, FINANCIAL UNDERWRITING C'� t.IA .SECTION 421VIUETIEAMILY`RESIDENTIAL DEVELOPMENT -, 8 HP1 GUIDELINE PROPOSED VARIANCE CAPITAL ASSUMPTIONS Land/unit <3,000 4,863 (1,863 New building/unit 33,000-43,000 88,234 45,234 Renovation/unit 80,000 Site Improvements/unit 1,000 0 1,000 Contractor ovhd&profit% of construct cost 8% 5% 3% Construction contingency%of building cos 3-7% 5% • 0% Landscaping/unit 500-1,000 0 500 Personal Property/unit 1,000-1,500 1,694 (194 Development fee/unit 3,000.3,500 10,147 (6,647 Development fee%of construction plus misc Building 10-12% 8% 2% Architect fee%of construction 4-8% 2% 2% Soft costs%of total 20% Reserves/unit <1,000 1,250 250 Lease up fee/unit 1/2 months rent per uni <500 375 0 Construction cost certification 2,500 2,500 0 FINANCING ASSUMPTIONS eillik First Mortgage(10yr Treas. +300 basis points) Interest Rate 8-10.5% 10.25% 0.00'% Origination fee 1.5% 1.50% 0 Interest rate lock or term >9.years 30 0 Amortization 25-30 yr 30 0 Construction loan interest rate prime plus 2.5% 9.75% Construction origination fee 1% 1.00% 0 Debt service coverage 1.15 1.15 0.00 2nd mortgage debt service coverage >1.05 2.58 0.00 INCOME ASSUMPTIONS Section 42 rents%of allowable rents 90-95%of max 95% 0% Section 42 rents%of total units/sq.ft. >60% 88% 7% Rent Escalator 3% 3.00% 0 Expense Escalator 4% 4.00% 0 Commercial income p. s.f. $6-10 7.4 0 Other Income/unit/month. 53-6 4 0 Garage Income/unit/month 525-45 0 0 EXPENSE ASSUMPTIONS Expense/unit excluding property taxes,management, • compliance and professional fees 51,200-1,500 1,834 334 Management fees%of operating Income 3.5-5% 4.00% 0% Cash managt/Accounting fees%of operat. 1.50% 1.50% 0% Compliance fee %of net rental Income 1.00% 1.00% 0% Replacement Reserves $150-300 250 0 Audit fee 5,000 2,500 (2,500 Housing Authority compliance fee 10-40 25 0 CREDIT COST 45-58 86.89 28.89 LAND PROPERTIES,INC. - ••• PRELIMINARY WORKSHEET FOR DIS0 80