2. Activities to Date
• Local Developer: Terraco/Gendell WNB, LLC
• Site Considered: 1211 Chicago Avenue
• Signed Lease: February 2012
3.
4.
5. Consideration by City Council
• Acquire Two Parcels
– 1223-1225 Chicago Avenue
– 1229 Chicago Avenue
• Enter into Parking License Agreements at each
newly acquired parcel
9. PARKING FUND 12/31/2011
(Unaudited Statement)
ASSETS
CASH AND INVESTMENTS 12,676,319
RECEIVABLES 5,603,922
FIXED ASSETS 84,549,132
ACCUMULATED DEPRECIATION (17,530,565)
NET FIXED ASSETS 67,018,566
TOTAL ASSETS 85,298,807
LIABILITIES
BONDS PAYABLE (22,714,037)
OTHER PAYABLES/LIABILITIES (1,393,649)
TOTAL LIABILITIES (24,107,686)
RETAINED EARNINGS 61,191,121
(NET ASSETS)
10. Impact of Transaction
• Purchase of Land:
– Reduces Cash by $2,050,000
– Increases Fixed Assets by $2,050,000
• Building parking lot increases land value by
$500,000
• Total impact of transaction is an increase in
Parking Fund assets of $500,000, which will be
depreciated over parking lot life.
11. Impact of Transaction
• Investment Income is presently approximately
0.30% for short term investments
• Income on $2,050,000 per year is $6,150
• Income on 24 spaces at $35/mo. is $10,080,
but we have not guarantee of full usage
• Lot license fee deposited into the Parking
Fund at $50,000
12. Impact of Transaction
• Alternative revenue sharing options would
cost $125,000 to $250,000 per year, assuming
City shared less than 50% of revenue
• City would have no asset at end of transaction
• Return on investment time frame could
double from current estimate of 4 to 6 years
13. Estimated Revenue Projections
Revenue Source City’s Portion
(Low Estimate)
City’s Portion
(High Estimate)
Home Rule Sales Tax $234,000 $325,000
General Merchandise Tax $23,400 $32,500
Liquor Tax $210,600 $292,500
Property Tax $19,500 $19,500
Total New Revenue $487,500 $669,500
Assumptions for Estimated Revenue Projections:
• Store is 13,000 square feet
• Annual sales range from $1,800 (low estimate) to $2,500 (high estimate)
14. City’s Return on Investment
• Total Investment: $2,050,000
• Range of Annual Income: $487,500 to $669,500
• City’s ROI ranges between 23% and 32%
• Investment recovered between 2016 and
2018
= Return on Investment (ROI)__Annual Income__
Investment
15. Trader Joe’s in Other Communities
Clockwise from Top Left:
Prescott, AZ (2012)
Park Ridge, IL (2002)
Arlington Heights, IL (2001)
16. Parking License Agreement
Financial Deal Points
• Initial License Fee of
$25,000 per parcel
• Developer will fund site
work and construction
(Approx. $500,000)
• Property will remain taxable
Term & Usage Deal Points
• License term of 70 Years
• Maintenance and repair
developer responsibility
• City is protected in event of
store vacancy
• City retains rights to 24
parking spaces at north end
of lot
19. Questions & Answers
• Q1: What happens to the 1223-1225 Chicago
Avenue property prior to demolition?
• A1: L.A. Tan will continue to rent and operate
prior to demolition. Vacant space could be
used for a “pop-up” store, Art Under Glass, or
other short-term use.
20. Questions & Answers
• Q2: What happens to the house at 1229
Chicago Avenue?
• A2: Developer will work with leasehold tenant
to relocate residents. Developer and City will
determine the feasibility to relocate the
house.
21. Questions & Answers
• Q3: What impact will this new store have on
the sales of area grocery stores?
• A3: There is likely to be a short-term impact
lasting six to nine months, however overall
the addition of store is likely to bring new
shoppers to the market.
22.
23.
24. Questions & Answers
• Q4: What about previous developments and
deals for a Trader Joe’s?
• A4: The development at 1890 Maple was most
recently slated to be home to a Trader Joe’s. The
City had entered into agreement to provide $1.9
million in assistance for this project. Due to real
estate market downturn, the developer was
unable to obtain financing to complete project.
25. Questions & Answers
• Q5: When will the store open?
• A5: If this project moves forward, it is
expected to open Spring 2013.
27. Lee Street Beach
Despite reports, Lee Street Beach
(and all Evanston beaches and parks) will remain Evanston assets.
Editor's Notes
Key Points to Highlight:
Proposed/Draft Plan this site plan will go through formal development review process like any planned development
Plan Commission – P&D – City Council
Describe development: Building oriented at south of property, parking to the north
Highlight parcels for purchase
Key Points to Highlight:
Terraco owns the southern parcel
If the City were to purchase City will retain significant rights to influence future development potential of this property.
Key Points to Highlight:
1229 Chicago Avenue is offered at $650,000
1223-1225 Chicago Avenue is offered at $1.4M
Total acquisition of property is $2.05M for 18,000 sf or $114
Other development sites with similar sf pricing:
1717 Ridge - $5M for 39K sf: $128 psf
5440 Clark – 7.6M for 39: $196 psf
If this acquisition meets favorably with City Council:
1223-1225 Chicago Avenue would be purchased by the City later this month
Title of 1229 Chicago Avenue would be transferred to the City, however Northwestern has agreed to wait for payment until after the Trader Joe’s store is open and operating next year
