Southshore is pleased to announce the purchase of the old Bank of America building in downtown Lake Zurich.  This is an exciting step forward to the beginning of the development of Downtown Lake Zurich.  More to come!

That evening the Village Board decided not to select any developer for development of its owned properties in Parcel A.  Instead the Board decided to declare the Village owned properties not currently occupied as Surplus Properties and have them put up for sale.

More to come from Southshore about our going forward plans.  To see a copy of the Southshore Alternative Solution that was presented, please see the following PDF Files of the presentation.

Southshore Board Pres Part 1 August 20 2012

Southshore Board Pres Part 2 August 20 2012

Southshore presented a plan for A that focused on a destination and prominade that would attract people to downtown, create community, and safety for existing and new members of the community. The Southshore response was part of a comprehensive redevelopment plan that included Blocks E, B, C.

The critical points presented by Southshore were:

• Over the next 7.5 years, the Village must make $19.4MM in aggregate P&I payments for TIF
• Over $124MM in new assets needed to service FY 2014 P&I of $2.47MM
• If Block A was built as Rental Apartments individually it would create an $(825,000) Cost to school district vs. $270,000  RE Tax Revenue Stream to Village

The Southshore solution included the following critical points:

• Southshore will develop the downtown as a Destination including Blocks E, C, B, A, not a singular Block.
• Southshore will begin with Block E, as starting with A would require Village obligated infrastructure expansion and improvement and Village purchase of additional land.
• E will drive tax revenues to the Village sooner and not require infrastrucutre improvement expenses
• Southshore has secured its financing for the land acquisition and construction
• Southshore would privately finance the Village’s infrastructure expense obligations and purchase needed Village parcels at market to drive immediate cashflow into the Village.

See the  following presention that was given to the Village

click here   Lake Zurich July 23 Pres   click here

Please “Click the Link” at the end to view Southshore’s submission to the Village.

Great News

• Southshore has secured two funding facilities.
• The Southshore funding facilities are in force, not contingent.
• Facility 1 will support land acquisition and land assembly, including Village properties and infrastructure.
• Facility 2 will provide construction funding for buildings and infrastructure.
• Separate from this discussion with the Village regarding Block A, Southshore has initiated the purchase of and is closing on many properties within the TIF for development per our Destination approach.

Our Perspective

• Block A must be part of Blocks E, C-North, A/B/K, and C-South as Block A alone will create an estimated ($555,000) annual deficit. (see page 17 of our presentation)
• Initial focus will be on Block E.
• Blocks E, C-North, B, K and A will create approximately $5 – $5.5MM in annual tax revenues to the Village. (see page 7 of our presentation)
• Our last review of Village records identified that current TIF debt payments extend through 2029.
• In 2014 there will be a Village Principle and Interest payment due of –$2.474MM (est.)
• With new real estate typically tax assessed at 2% of constructed value,  over $124MM in newly constructed assets will need to be built by 2014 to service the FY 2014 P&I.

Southshore’s Solution

• Immediately, at market price, purchase target land from Village.
• Privately finance the Village’s obligated infrastructure development.
• Include Somerset properties into redevelopment.
• Private assumption of development and construction risk (commercial, infrastructure, private)
• Private assumption of financing and performance risk.
• Village agreement to repay infrastructure cost and land acquisition cost with money advanced by Southshore when Southshore creates taxable assets that generate tax revenue.

click here>>>Lake Zurich Development Response<<<click here

Where We’ve Been

• We have over 36 months of planning and development invested in the redevelopment of downtown Lake Zurich.
• Held the Charrette Process in June 2008, where we established a partnership with the people of Lake Zurich, Village Board, and staff to decide on the most important elements of a go forward development.
• From this partnership a Master Plan was developed for the Village of Lake Zurich with world-renowned architect Torti Gallas.
• Additionally a Form Based Code was created that would serve to protect neighborhood quality and guide development.
  

Where We’re Going

• Secured re-commitment from lender for an acquisition and construction loan, adjusting for decision of the Village Board Jan 17, 2011 not to extend development agreement.
• We have started the land acquisition phase of the project through utilization of our Land Acquisition Loan Facility.
• Adhering to the key fundamental precepts of the Project.
• Creating a destination with public and commercial elements including shops, restaurants, and family attractions.
• Building an environment that strengthens how residents can connect together and be in community.
• Partnering opportunities with the community.
• Moving forward with continued integrity.