ECONOMIC DEVELOPMENT SERVICES FOR TRANSPORTATION

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1 ECONOMIC DEVELOPMENT SERVICES FOR TRANSPORTATION RANADIP BOSE, AICP SENIOR PROJECT MANAGER T (direct) F E rbose@sbfriedman.com

2 FIRM PROFILE SB Friedman Development Advisors ( SB Friedman ) is a specialized development advisory firm based in Chicago. We have expertise in transit-oriented development, the analysis of transportation and land use relationships, and the use of publicprivate partnerships to create high-quality urban development. Founded in 1990, the firm works closely with its clients to evaluate development potential; project market and financial feasibility; identify innovative public-private development solutions; analyze economic and fiscal impacts of development; and prepare implementable development strategies. SB Friedman has been recognized as one of the few consulting companies that truly understands both the public and the private perspectives on development issues. We understand that transportation improvements can catalyze economic development and improve the competitiveness of a region by reducing congestion, and improving travel times and access. We are experienced in quantifying the land use and development impacts associated with transportation improvements and provide our clients with associated population, employment and tax revenue forecasts at various levels of geography. In addition, our firm has extensive experience in development financing and has assisted numerous municipalities throughout the Midwest with underwriting for public-private transactions. We have expertise in assessing and crafting appropriate value capture mechanism(s), and quantifying the supportable revenue stream that can be generated to help generate funding for new transportation projects. We have provided this type of analysis for the Chicago Metropolitan Agency for Planning, the City of Milwaukee, the Illinois Department of Transportation, and the Illinois Finance Authority. Over the past 10 years, SB Friedman has participated in the origination of approximately $1.7 billion of public-private financing (including tax credit financing, Tax Increment Financing, revenue bonds, multi-credit bonds and gap financing loans) in support of over $5.4 billion of projects. SB Friedman is in its 25th year of operation, and has assisted hundreds of public, private and non-profit clients in planning, financing and developing real estate projects. We provide both strategic and technical services in such areas as: Public-Private Development Finance (e.g., Tax Increment Financing, New Markets Tax Credits) Value Capture and Infrastructure Finance Transit-Oriented Development Market and Economic Feasibility Economic Development Strategy Fiscal and Economic Impact Studies Public-Private Partnerships The firm s experience is complemented by a commitment to creative problem solving and continued client assistance from start to finish. Our services deliver each of the key elements of a winning project; we provide in-depth understanding of economic feasibility, physical assets and constraints, and community goals to help create successful partnerships, plans and districts. For more information about our firm, please visit:

3 DEVELOPMENT FORECASTS: TRANSIT SB Friedman Development Advisors has developed a rigorous market-based approach to population and employment forecasts related to a transit improvement. Our analysis is conducted at the parcel level and synthesizes transportation accessibility benefits, market analysis, community planning efforts and real estate economics to prepare forecasts that simulate actual development decisions made by a developer. Omaha Transit/Streetcar Alternatives Analysis City of Omaha, Nebraska Planning study of transit alternatives in Omaha - Along with alternative routes, the City and Omaha Metro considered whether to pursue streetcar or BRT service. Case studies of development associated with comparable transit projects Identifying financing mechanisms Assessing real estate development potential Completed analysis of streetcar and BRT impacts on development, and financing mechanisms to pay for improvements Recently engaged to conduct a value capture financing analysis Projected Development with Transit Projected Development without Transit

4 DEVELOPMENT FORECASTS: HIGHWAY We utilize a similar market-based approach to population and employment forecasts related to highway development. Forecasts are prepared for both build and no-build conditions, in accordance with the requirements of the National Environmental Policy Act (NEPA). We synthesize and reconcile top-down demand forecasts for all major real estate products and bottom-up analyses to identify sites that are likely to change over the long term, based on current land use conditions, vacancy levels, property value and community plans. No-Build Scenario Elgin-O Hare Western Access (EOWA) Development Forecast Analysis Illinois Department of Transportation (IDOT) A Tier II Environmental Impact Statement for the EO-WA, a limited access highway system that would provide access to O Hare Airport and major highways. The project area encompassed over 120 square miles. Assessing real estate development potential Economic development forecasts for Build and No-Build alternatives Value capture financing forecasts Our findings were included in an Advisory Council Report to the Governor The U.S. DOT gave final approval for the project, and construction began in 2013 Build Scenario

5 ECONOMIC IMPACTS SB Friedman has expertise in evaluating the economic impacts of transportation improvements. We compare the impacts of alternative proposed transportation improvements as well as the baseline no-build scenario, based on explicit consideration of changes in access and visibility, traffic capacity increases, and travel time savings resulting from the improvements. Through this analysis, we can estimate impacts on business growth and productivity improvements, and estimate direct, indirect and induced changes in employment, output and employee compensation. Randall/Algonquin Intersection Improvements Analysis McHenry County, Illinois Economic impact analysis of transportation improvements at the Randall/Algonquin intersection. Two alternatives include an expanded conventional intersection and a displaced left turn intersection. Impact analysis comparing two alternatives to a no-build scenario, including access and travel patterns, capacity increases and time savings, and projected population growth Presented our findings to the McHenry County Board, who ruled in favor of the expanded conventional intersection

6 FINANCING As the state and federal share of funding for transportation projects continues to diminish, there is an increasing need for innovative financing techniques such as value capture for transportation projects. Value capture financing is one way to generate upfront local funding by capturing a portion of the real property value increases that would be generated by transportation improvements. Our firm has expertise in assessing and crafting the appropriate value capture mechanism(s), and quantifying the revenue stream that can help generate funding for new transportation projects. CMAP Value Capture Strategy Study Chicago Metropolitan Agency for Planning A financial study to determine potential value capture strategies as funding sources for transit and highway investments in Chicago region. Includes new CTA Oakton Station and three of CMAP s priority transit projects. Evaluation of multiple value capture methodologies and their feasibility Testing the revenue-generation potential for alternative financing mechanisms Financial impact analysis for a potential, station-adjacent development Complete studies have been submitted and are available on CMAP s website

7 DEVELOPMENT STRATEGY: AIRPORTS SB Friedman has extensive experience in planning, finance and strategy for collateral land development for both global and regional airports. Our expertise relates to development on nonaeronautical, surplus airport property within the airport premises as well as airport proximal property. Our services include: quantifying market potential for private development, crystalizing development strategies to achieve project implementation, estimating long-term revenues from such development, and preparing socio-economic forecasts/ impacts of airport investments. Cleveland Hopkins International Airport: Development Advisory Services City of Cleveland Department of Port Control SUPPORTABLE CLE DEVELOPMENT PROGRAM USE Supportable Square Footage HOTEL 132, ,000 RETAIL 2,000-4,000 CLASS A OFFICE OVERALL PROGRAM 0-35,000 Component Restaurant, lounge, coffee shop; 200 hotel rooms; Meeting/conference space Restaurant and retail space; Public seating associated with restaurants Multi-tenant office space; Public seating associated with restaurant 134, ,000 A comprehensive development plan rooted in market/economic analysis for a mixeduse hotel, office and retail complex at the Cleveland Hopkins International Airport. Case studies; market feasibility analysis; development program; economic feasibility analysis; public-private financing; procurement strategies for development; strategic action plan Presented our findings in 2014; currently re-engaged in light of a change in market demand (no longer a United Airlines hub) Proposed Hotel Complex and Ground Transportation Center

8 Selected Clients MUNICIPALITIES City of Aurora, IL City of Chicago, IL City of Cleveland, OH City of Council Bluffs, IA City of Dallas, TX City of Davenport, IA City of Delafield, WI City of Des Plaines, IL City of Elmhurst, IL City of Grand Rapids, MI City of Indianapolis, IN City of Lake Forest, IL City of Milwaukee, WI City of Moline, IL City of Omaha, NE City of Park Ridge, IL City of Pittsburgh, PA City of Richardson, TX City of Rockford, IL City of Shaker Heights, OH City of Warrenville, IL City of Wheaton, IL Town of Normal, IL Village of Bensenville, IL Village of Carpentersville, IL Village of Glenview, IL Village of Mount Pleasant, WI Village of Oak Park, IL Village of Oswego, IL Village of Palatine, IL Village of Pleasant Prairie, WI Village of Shorewood, WI Village of Skokie, IL Village of Vernon Hills, IL OTHER PUBLIC AGENCIES Atlanta Development Authority Chicago Development Fund Chicago Public Schools Chicago Metropolitan Agency for Planning Chicago Transit Authority Dallas Development Fund DuPage County, IL Gary / East Chicago / Hammond Empowerment Zone Illinois Department of Transportation Joplin Regional Airport / City of Joplin, MO Metra Metropolitan Airport Authority of Rock Island County, IL Metropolitan Water Reclamation District of Greater Chicago Milwaukee County Dept. of Economic Development Northwest Indiana Regional Development Authority Regional Transportation Authority EDUCATION & HEALTHCARE Chicago Academy for the Arts Elmhurst Memorial Hospital Felician Sisters Lewis University Loyola University Chicago Mercy Hospital Northwest Community Healthcare Presence Health University of Chicago University of Illinois at Chicago University of Illinois at Urbana- Champaign University of Nebraska Kearney University of Nebraska Medical Center COMMUNITY DEVELOPMENT ORGANIZATIONS Chicago Loop Alliance First United Methodist Church of Chicago Aid Society Fox Cities Chamber of Commerce and Industry John D. and Catherine T. MacArthur Foundation Uptown United West Humboldt Park Development Council PRIVATE DEVELOPERS & LANDOWNERS The Alter Group Central Station Development Corporation Chicago Community Development Corporation The Community Builders East Lake Management and Development Corporation ER James Partners GMX Real Estate Group Heartland Housing Hispanic Housing Development Corporation Holsten Real Estate Development Corporation The John Buck Company Jones Lang LaSalle Joseph Freed and Associates The McShane Companies Moser Enterprises, Inc. NRP Group The Prime Group, Inc. Van Vlissengen & Co. Wispark FINANCIAL INSTITUTIONS Bank of Oklahoma NCB Capital Northern Trust Oppenheimer & Company Travois, Inc. Urban Partnership Bank William Blair & Company COLLABORATORS CH2M Hill Crawford, Murphy & Tilly, Inc. Ginkgo Planning and Design HDR The Lakota Group Leo A Daly Skidmore, Owings & Merrill (SOM) Solomon Cordwell Buenz (SCB) TranSystems URS Corporation SB Friedman Development Advisors is a real estate and development advisory firm specializing in development strategies and public-private partnerships. Founded in 1990, we work with public, private and institutional clients. Our mission is to guide and enable our clients to create high-quality places through the practice of real estate economics, development finance and urban planning. SB Friedman Development Advisors is registered with the Municipal Securities Rulemaking Board (MSRB) as a Municipal Advisor. S.B. Friedman & Company 221 North LaSalle Street Suite 820 Chicago, IL E info@sbfriedman.com T