Dundee Rd TIF - Public Hearing Presentation - July 17, 2023

Image Source: SB Friedman

01 Introduction

WHO WE ARE

 SB Friedman Development Advisors is a Chicago-based consultancy working with the public and private sectors in a range of disciplines

 Market Analysis and Real Estate Economics

 Development Strategy and Planning

 Public-Private Partnerships and Implementation

Geoff Dickinson, AICP Partner

PROPOSED DUNDEE ROAD TIF DISTRICT RPA

23 IMPROVED PARCELS [1]

107 ACRES

20 PRIMARY STRUCTURES[2]

CURRENT LAND USES COMMERCIAL CIVIC/INSTITUTIONAL OPEN SPACE RIGHTS-OF-WAY

[1] The proposedRPA is composed of 24 total parcels, including one right-of-way parcel that was excluded from our eligibility analysis

[2] SB Friedman analyzed building ages for primary structures. Ancillary structures such as storage sheds and garages were excluded from the building age analysis

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FIGURE 1: CONTEXT MAP

Source: Village of Buffalo Grove; Cook County; SB Friedman

02 Eligibility

RPA ELIGIBILITY –IMPROVED LAND

Two paths to eligibility as a “Blighted Area” or “Conservation Area” exist for improved land under the Act

BLIGHTED AREA

 At least five (5) of 13 possible factors must be present to a meaningful extent and reasonably distributed

CONSERVATION AREA

 At least three (3) of 13 possible factors must be present to a meaningful extent and reasonably distributed

 At least 50% of buildings must be 35 years of age or older

ELIGIBILITY FACTORS

 Dilapidation

 Obsolescence

 Deterioration

 Presence of structures below minimum code standards

 Illegal use of structures

 Excessive vacancies

 Lack of ventilation, light or sanitary facilities

 Inadequate utilities

 Lack of growth in EAV

 Excessive land coverage and overcrowding of structures and community facilities

 Deleterious land use or layout

 Environmental cleanup

 Lack of community planning

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PROPOSEDRPA ELIGIBILITY –IMPROVED LAND

Methodology

The following data was compiled and analyzed to evaluate eligibility factors

 Collected parcel-level data from Cook County

 Conducted fieldwork in February 2023 to document external property conditions

 Reviewed building age data from the Cook County Assessor

 Reviewed municipal and county codes

 Reviewed Villagebuilding permit and code violation records as of February 2023

 Reviewed Village memorandum summarizing utility conditions within the proposedRPA

 Reviewed the Village’scurrent and prior comprehensive plans, adopted in 1973, 1981, 1986, and 2009

 Compiled and mapped all potential factors to assess eligibility

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ELIGIBILITY FINDINGS –CONSERVATION AREA

Study Area qualifies as Conservation Area; 75% percent of buildings built before 1988

 ProposedRPA qualifies as a “conservation area” under the Act

 15 of the 20 (75%) primary structures within the proposed RPA are over 35 years old

 Ancillary structures such as storage sheds and garages excluded from analysis

 Four (4) of 13 eligibility factors are present to a meaningful extent and reasonably distributed

 Deterioration

 Inadequate Utilities

 Presence of Structures below Minimum Code Standards

 Excessive Vacancies

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FIGURE 2: PROPOSED RPA BOUNDARY

Source: Village of Buffalo Grove; Cook County; SB Friedman

Deterioration ELIGIBILITY FINDINGS –CONSERVATION AREA

 Deterioration was observed on 83% of parcels

 19 of 23 parcels

 Common forms of deterioration included:

 Surface deterioration: “Alligatoring” of pavement and potholes on parking lots, alleys and roads

 Building deterioration: water damage, cracks in foundation, broken windows, broken downspout

 Factor is meaningfully present and reasonably distributed throughout the proposed RPA

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FIGURE 3: DETERIORATION OF PARCELS IN PROPOSED RPA

Source: Village of Buffalo Grove; Cook County; SB Friedman

ELIGIBILITY FINDINGS –CONSERVATION AREA

Inadequate Utilities

 Defined in the Act as “underground and overhead utilities…which are”:

 Of insufficient capacity to serve the uses in the RPA;

 Deteriorated, antiquated, obsolete or in disrepair; or

 Lacking within the redevelopment project area.

 Per Village Public Works Department memo, stormwater sewer systems, including both publicly and privately owned, are on average 40 years old.

 None of these systems were designed to current standards, which were adopted in 2014

 Factor is meaningfully present and reasonably distributed throughout the proposed RPA

ELIGIBILITY FINDINGS –CONSERVATION AREA

Presence of Structures Below Minimum Code Standards

 As defined in the Act: structures below minimum code standards do not meet applicable standards of zoning, subdivision, building, fire and other governmental codes, which protect health and safety of public

 All stormwater sewer systems in the RPA are on average 40 years old, and were not designed to 2014 standards

 Factor is meaningfully present and reasonably distributed throughout the proposed RPA

SB Friedman DevelopmentAdvisors

ELIGIBILITY FINDINGS –CONSERVATION AREA

Excessive Vacancies

 The Act defines excessive vacancies as the presence of buildings that are unoccupied or underutilized and that represent and adverse influence on the area because of the “frequency, extent or duration of the vacancies.”

 As of March 2023, the proposed RPA has nearly double the retail vacancy rate of the broader market area

 Within RPA: 13% retail vacancy

 Market area (within 15-minute drive of RPA): 7% retail vacancy

 Factor is evaluated area-wide and is meaningfully present throughout commercial areas in the proposed RPA

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FIGURE 4: EXISTING LAND USE IN PROPOSED RPA

Source: Village of Buffalo Grove; Cook County; SB Friedman

REQUIRED TESTS AND FINDINGS

ADDITIONAL REQUIREDFINDINGS

PROPOSED RPA

• Only ~$560,000 annually invested over the past five years (2017-2022)

• No new construction

But for the creation of a TIF district, critical resources would be lacking that would otherwise support the redevelopment of the TIF district, and the TIF would not be reasonably anticipated to be redeveloped

Proposed RPA includes only the contiguous property that is expected to substantially benefit from the TIF District

Future land use conforms with the Village’s 2009 Comprehensive Plan, as well as existing, pending and subsequent amendments to that plan, which include the proposed RPA

The Village of Buffalo Grove certifies that the Redevelopment Plan will not result in the displacement of 10 or more inhabited residential units as a result of activities pursuant to this Redevelopment Plan. Therefore, a Housing Impact Study is not required under the Act

December 31, 2047, if the ordinances establishing the proposed RPA are adopted during 2023

03

Key Components of Redevelopment Plan

MAJOR REDEVELOPMENT OBJECTIVES

 Facilitate the physical improvement and/or rehabilitation of existing structures and façades within the proposed RPA, and encourage the construction of new commercial, residential, civic/cultural and recreational development, where appropriate

 Foster the replacement, repair, construction and/or improvement of public infrastructure whereneeded, including public utilities, public park and recreational facilities, sidewalks, streets, curbs, gutters, underground water and sanitary systems, and stormwater detention of adequate capacity to create an environment conducive to private investment

 Facilitate the renovation or construction of stormwater management systems and flood control within the proposed RPA

 Provide resources for streetscaping, landscaping and signage to improve the image, attractiveness and accessibility of the proposed RPA, create a cohesive identity for the RPA and surrounding area, and provide, where appropriate, for buffering between different land uses and screening of unattractive service facilities such as parking lots and loading areas

 Facilitate the assembly and preparation, including demolition and environmental clean-up, where necessary, and marketing of available sites in the proposed RPA for redevelopment and new development by providing resources as allowed by the Act

 Support the goals and objectives of other overlapping plans, including the Village’s 2009 Comprehensive Plan as well as existing, pending, and subsequent amendments to the 2009 Comprehensive Plan, and coordinate available federal, state and local resources to furtherthe goals of this Redevelopment Plan and Project

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PROPOSED BUDGET

EligibleExpense $500,000

AdministrationandProfessionalServiceCosts

SiteMarketingCosts

PropertyAssemblyandSitePreparationCosts $12,500,000

CostsofBuildingRehabilitation

CostsofConstructionofPublicWorksorImprovements

CostsofJobTrainingorRetraining(Businesses)

FinancingCosts

TaxingDistrictCapitalCosts

PaymentsinLieuofTaxes $100,000

CostsofJobTraining(CommunityCollege) $100,000

TOTALREDEVELOPMENTPROJECTCOSTS

InterestCosts(DeveloperorPropertyOwner) $75,000,000

FUTURE LAND USE

 Permitted uses in mixed-use designation include:

 Commercial

 Office

 Residential

 Civic/Cultural

 Public

SB Friedman DevelopmentAdvisors

FIGURE 5: PROPOSED FUTURE LAND USE

Source: Village of Buffalo Grove; Cook County; SB Friedman

PUBLIC APPROVAL PROCESS

Date

May 9, 2023

June 20, 2023

July 17, 2023

August 21, 2023

Approval Step

RedevelopmentPlan and Project filedwith Village Clerk

Joint Review Board Meeting

Public Hearing

Village Board Consideration