At the request of the Village of Lake Zurich, Southshore responded to a request of how we would propose to develop Block A. The important highlights of our response follow.
Please “Click the Link” at the end to view Southshore’s submission to the Village.
- 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.
- 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.
- 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