Redfield to Redevelopment Libertyville, Illinois John Spoden, AICP, Director of Community Development, Village of Libertyville John McLinden, StreetScape Development, LLC DEFINITIONS Greenfield – development on previously undeveloped site Brownfield – development on environmentally challenged site Redfield – development on foreclosed property BACKGROUND Libertyville, IL • Located 35 miles NW of Chicago at commuter rail stop • Incorporated 1882 • Population 21,800 • Median household income $105,000 • Award-winning Main Street Community BACKGROUND TRAIN STATION SCHOOL STREET 3 MI TO INTERSTATE BACKGROUND BACKGROUND BACKGROUND BACKGROUND • 1970s – Village of Libertyville identifies School Street as key future development site and commits to acquiring the 4 acre site • 1976 – Village purchases first house • 1976-2002 – Village systematically purchases each property as it comes on the market • 2004 – Village issues RFP to nine pre-qualified developers to re-develop the site • 2005 – Village selects developer based on concept of 31 Brownstones and 12 condos in the school building • 2006 – Village approves original Planned Development • 2007 – Construction begins on infrastructure and first 5-unit building • 2008 – Village issues occupancy permits for first 5 units (4 of 5 sold) • 2009 – Bank forecloses on property – a redfield is created • 2009 – Village is approached by multiple developers about proposed concepts MOVING FORWARD - PRE-DEVELOPMENT • January-September, 2009 – StreetScape Development, LLC envisions new development plan and gains Village support MOVING FORWARD - PRE-DEVELOPMENT MOVING FORWARD - PRE-DEVELOPMENT The “Big Idea” MOVING FORWARD - PRE-DEVELOPMENT The “Big Idea” Change development concept: townhomes single-family homes MOVING FORWARD - PRE-DEVELOPMENT MOVING FORWARD - PRE-DEVELOPMENT MOVING FORWARD - PRE-DEVELOPMENT MOVING FORWARD - PRE-DEVELOPMENT MOVING FORWARD - PRE-DEVELOPMENT MOVING FORWARD - PRE-DEVELOPMENT MOVING FORWARD - PRE-DEVELOPMENT • January-September, 2009 – StreetScape Development, LLC envisions new development plan and gains Village support MOVING FORWARD - PRE-DEVELOPMENT • January-September, 2009 – StreetScape Development, LLC envisions new development plan and gains Village support • October, 2009 – StreetScape enters into purchase agreement with bank MOVING FORWARD - PRE-DEVELOPMENT • January-September, 2009 – StreetScape Development, LLC envisions new development plan and gains Village support • October, 2009 – StreetScape enters into purchase agreement with bank • February, 2010 – StreetScape files to amend the Planned Development MOVING FORWARD - PRE-DEVELOPMENT • January-September, 2009 – StreetScape Development, LLC envisions new development plan and gains Village support • October, 2009 – StreetScape enters into purchase agreement with bank • February, 2010 – StreetScape files to amend the Planned Development • August, 2010 – Village approves the amended Planned Development MOVING FORWARD - PRE-DEVELOPMENT • January-September, 2009 – StreetScape Development, LLC envisions new development plan and gains Village support • October, 2009 – StreetScape enters into purchase agreement with bank • February, 2010 – StreetScape files to amend the Planned Development • August, 2010 – Village approves the amended Planned Development • September, 2010 – StreetScape closes on the property CLOSING September, 2010 SCHOOL STREET AT PRESENT January, 2012 SCHOOL STREET AT PRESENT SCHOOL STREET AT PRESENT • Phase 1 pricing - $449,000 - $689,000 • Current pricing - $525,000 - $810,000 • 18%(+/-) price increase • Sold without model home • Ten closings to date (average - $628,673) SCHOOL STREET AT PRESENT SCHOOL STREET AT PRESENT SCHOOL STREET AT PRESENT SCHOOL STREET AT PRESENT SCHOOL STREET AT PRESENT HOW DID WE DO IT? How was the project financed? HOW DID WE DO IT? How was the project financed? • Purchase property with cash HOW DID WE DO IT? How was the project financed? • Purchase property with cash • Investor requirements HOW DID WE DO IT? How was the project financed? • Purchase property with cash • Investor requirements • zoning approval HOW DID WE DO IT? How was the project financed? • Purchase property with cash • Investor requirements • zoning approval • pre-sell 6 homes HOW DID WE DO IT? How was the project financed? • Purchase property with cash • Investor requirements • zoning approval • pre-sell 6 homes HOW DID WE DO IT? How was the project financed? • Purchase property with cash • Investor requirements • zoning approval • pre-sell 6 homes • Secure bank construction financing on individual homes (same bank that foreclosed on property) HOW DID WE DO IT? Real Estate 101 HOW DID WE DO IT? Real Estate 101 Location, Location, Location HOW DID WE DO IT? Real Estate 102 HOW DID WE DO IT? Real Estate 102 Marketing, Marketing, Marketing HOW DID WE DO IT? Big Idea #2 HOW DID WE DO IT? Sarah Susanka and Not So Big HOW DID WE DO IT? Sarah Susanka and Not So Big What’s the attraction of big? HOW DID WE DO IT? Sarah Susanka and Not So Big The feeling of “Home” has almost nothing to do with size It’s a quality, not a quantity! HOW DID WE DO IT? Sarah Susanka and Not So Big HOW DID WE DO IT? Sarah Susanka and Not So Big HOW DID WE DO IT? Sarah Susanka and Not So Big Not So Big Showhouse Grand Opening held November 19, 2011 Open 12 weekends for 10 hours per weekend 5,350 visitors to date Average of 1 visitor every 1.3 minutes HOW DID WE DO IT? Selling Approach HOW DID WE DO IT? Selling Approach HOW DID WE DO IT? Selling Approach • Design Meeting #1 – “How do you live?” • It’s personal • A home is the ultimate Consumer Product • Controlled customization HOW DID WE DO IT? Marketing, Marketing, Marketing Retain top local Realtor HOW DID WE DO IT? Marketing, Marketing, Marketing HOW DID WE DO IT? Marketing, Marketing, Marketing HOW DID WE DO IT? Marketing, Marketing, Marketing HOW DID WE DO IT? Marketing, Marketing, Marketing PBS Nightly Business Report: Broken Developments / Redfield Sites HOW DID WE DO IT? Marketing, Marketing, Marketing HOW DID WE DO IT? Marketing, Marketing, Marketing HOW DID WE DO IT? Marketing, Marketing, Marketing HOW DID WE DO IT? Marketing, Marketing, Marketing HOW DID WE DO IT? Marketing, Marketing, Marketing WHY DID IT WORK? • Public / Private Partnership • Downtown Libertyville Location • Emotional Connection / Selling Approach • Create Great Product unlike anything else in the market • Marketing, Marketing, Marketing • Deliver the Ultimate Consumer Product WHAT’S NEXT? SCHOOL STREET WHAT’S NEXT? SCHOOL STREET QUESTIONS?