===== PDF PAGE 11 =====
[Extraction: OCR (rendered-page OCR)]
CITY OF WEST CHICAGO
DEVELOPMENT COMMITTEE
AGENDA ITEM SUMMARY
ITEM TITLE:
AGENDA ITEM NUMBER: S.A.
Project Concept Review
Aspen Venture Group FILE NUMBER:
Proposed Townhome Development
Downtown TIF / Block Two COMMITTEE AGENDA DATE: Jan. 11, 2021
COUNCIL AGENDA DATE:
STAFF REVIEW: Tom Dabareiner, AICP sionarure,“@J,_—___
APPROVED BY CITY ADMINISTRATOR: Michael Guttman SIGNATURE
ITEM SUMMARY:
Aspen Venture Group, a Chicago based developer, has prepared a preliminary design concept and
a financial analysis for an eight unit townhome project that it proposes to locate in downtown West
Chicago on land currently owned by the City. Aspen Venture Group is requesting $175,000 of TIF
assistance and donation of the land.
The project will be comprised of eight two-story townhomes of approximately 1,800 square feet
each. These will be owner occupied (for-sale) units that include a two-car garage located in the rear
of home. Each townhome will have three (3) bedrooms and two-and-a-half (2.5) bathrooms. The
developer expects the units to sell for an average price of $369.000.
Using a series of key assumptions established by the City’s TIF consultant, Kane, McKenna &
Associates, the project is estimated to generate $65,000 in annual incremental property tax revenue.
At a 4% discount rate, and assuming 100% occupancy, it’s estimated that the development would
produce almost $225,000 in cumulative incremental property tax revenue from 2022 (assuming units
are completed and sold in late 2021) through 2026, which would more than cover Aspen Venture
Group’s request for $175,000 in TIF assistance. However, the City has cash reserves in the TIF that
must be used prior to extinguishing the current TIF, or the reserves must be distributed to the other
taxing bodies. This is an eligible expense for use of the cash reserves.
With an estimated total development cost of $2.74 million, the requested financial assistance
represents roughly 6% of the project costs, and results in a return-on-cost for the developer of
7.07%. This rate of return is, by industry standards, on the low end for a project of this type.
The Development Committee must weigh in on two primary issues:
e Does the proposed project design fit with the City’s established goals for development in the
downtown?
e Is the City willing to use TIF incentives?
Representatives from Aspen will be online to explain their proposal and answer any questions.
ACTION PROPOSED:
Consideration and discussion

===== PDF PAGE 12 =====
[Extraction: OCR (rendered-page OCR)]
COMMITTEERECOMMENDATION:
Attachments:
ConceptDrawings

===== PDF PAGE 13 =====
[Extraction: OCR (rendered-page OCR)]
Proposal
for the
Development of Eight Townhomes
West Chicago, Illinois
December 16, 2020
1[Page

===== PDF PAGE 14 =====
[Extraction: OCR (rendered-page OCR)]
Introduction
Aspen Venture Group, Inc. and AUS Construction LTD are pleased to present our proposal for
the development of an eight unit townhome project at the northwest corner of High Street and
Center Street in West Chicago, Illinois. Aspen Venture Group, Inc. and AUS Construction LTD
have a long history of successful development projects throughout the country.
The Development Team together possesses the critical elements required to bring this
proposed project to a successful conclusion, the proven ability to execute and an
uncompromising dedication to quality design and construction.
Written Description of Project/Plans and Sketches
The proposed project consists of utilizing the site that is currently vacant and constructing one
building consisting of eight ‘for sale’ two story townhomes. Each townhome will consist of
approximately 1,800 square feet of living space, plus a basement and two car attached garage.
The townhomes will have three bedrooms and 2.5 bathrooms. The project will have an ‘urban’
look with the garage located in the back of each townhome and the building situated close to
the streets. Access to the garages will be from the existing alley located along the west side of
the site.
A copy of the schematic site plan and elevations is attached hereto.
Schedule for Development
The Development Team is prepared to begin this project immediately. It is anticipated that pre-
development will take up to sixty days to complete engineering and architectural drawings, and
that construction will take approximately eight months.
Draft Project Financial Pro Forma/Public Financial Assistance
The forecasted development costs, along with the forecasted sales price of each individual
townhome are financially unfeasible for our Development Team, without substantial
participation from the City of West Chicago. Our financial model for the project demonstrates
the need for the city to donate the land and approve a Tax Increment Financing component in
the amount of $175,000.
2|Page

===== PDF PAGE 15 =====
[Extraction: OCR (rendered-page OCR)]
The Development Team/Contact Information
The members of the Development Team are as follows:
Aspen Venture Group, Inc., Co-Developer
AUS Construction LTD, Co-Developer
Gansari & Associates, LLC, Architect
CEC Civil & Environmental Consultants, Inc., Civil Engineer
@Properties, Sales and Marketing
These firms all have extensive experience in real estate, including design, investment,
development, financing and sales. The primary contact for the Development Team is:
Philip Richardson
President
Aspen Venture Group, Inc.
1430 N. Astor Street
Chicago, Illinois 60610
312-898-3843
aspenventuregroup@gmail.com
Conclusion
The Development Team would like to thank the city of West Chicago for the opportunity to
present this proposal. We are confident that we can work together to provide a worthy
addition to the downtown. We welcome a more detailed discussion of our ideas, concept and
commitment.
3|Page

===== PDF PAGE 16 =====
[Extraction: OCR (rendered-page OCR)]
Attachments
4IPage

===== PDF PAGE 17 =====
[Extraction: OCR (rendered-page OCR)]
Front Elevation
5IPage

===== PDF PAGE 18 =====
[Extraction: OCR (rendered-page OCR)]
Rear Elevation
6lPage

===== PDF PAGE 19 =====
[Extraction: OCR (rendered-page OCR)]
7|Page
Plat showing location of the site.
at
aa-
|
MC CONNELL AVE
\
—\
-
Pe >,
SaYu1LS VYO:
LS3YLS NaA0Y8VS
LBSYLS VIHDOS
TON STREET
GENEVA STREET
é
CITY OF WEST CHICAGO
REDEVELOPMENT AREA
LEGEND
CITIF BOUNDARY
“| PRIVATELY OWNED PARCELS
CITY OWNED PARCELS
oT
SUMMIT AVENUE
SANSBAVY GOO
1 INCH = 333 FEET

===== PDF PAGE 20 =====
[Extraction: OCR (rendered-page OCR)]
ORDERED By: SPFLEGATE ann ORDER fe: SBP eye Fue me, 768 ae
BTaTe OF kK LiNOIs we. FE gyre jet STATE OF KRLINGIS” Jes
COUNTY OF OU PAGE : SOUNTY OF OG PAGE
THIS IS TO CERTIFY THatT i, AN iLciNoIs
LAND SURVEYOR, HAVE SURVEYED THE
SROPERTY DESCRIBED ABOVE AND THAT
THE ANNEXED PLAT IS A CORAZCY REP
RESENTATION OF SAD SURVEY
GIVEN UNGER My RAND_ANMD SEAL AT
HEATON, JLCINGIS THIS OAY Of Bet wee
AD 1972 isp SF
beni 3
gern QULCINGS LOCATEO AS SHOWN on
THIS Gay OF, ecninwennrenines A EF! 18 Fo.
“Sie Ge
Sona TRL LSy
bi Ae aan

===== PDF PAGE 21 =====
[Extraction: OCR (rendered-page OCR)]
9|Page
Site plan.
PENX.
\ Nw.
se
s
PROPOSED\, . \
BUILDING \. a
TOWNHOUSES * & aN
20,427 S.F. NOTE
. 2 STORY,8 ROOMS a
16 PARKING SPACES