| Major retail development projects (new construction and expansions) can have a significant positive fiscal impact on local government, primarily through the generation of sales and property tax revenues. However, these projects frequently require significant capital and do not generate an adequate return on investment to Ownership.
Urban Retail has successfully negotiated a number of public subsidy agreements with local government that made possible the implementation of major retail projects. Three case studies are summarized below: Old Orchard Mall (Skokie, IL) Old Orchard, which was developed in 1958 as an open mall, was traditionally the dominant mall serving Chicago's North Shore market. Over the years, sales flattened out as the trade area moved north and competing centers, including the redevelopment of existing suburban downtowns, continued to steal sales.Old Orchard could only be saved by a significant upgrade. The expansion plan included the first Nordstrom in the Chicago area, the first suburban Bloomingdales store, significant additional GLA including a food court, theaters, and the construction of two major parking decks. The $150,000,000 project could not stand on its own financially, primarily due to the department store subsidies and the parking decks. Urban Retail, on behalf of ownership, negotiated a subsidy agreement with the City of Skokie that is summarized below:
Galleria at Roseville (Roseville, CA) The site for this Regional Mall was strategically located in the heart of a major growth corridor of suburban Sacramento. The site was encumbered by a major special assessment and development impact fees totaling approximately $25,000,000, thus making the project financially unfeasible. Urban Retail negotiated a subsidy with the City based on a sale-leaseback of public improvements and a rental stream based on the sales tax generated by the mall. This subsidy increased the return on investment by 400 basis points, thus making the project feasible. The Galleria at Roseville opened in August 2000, and currently generates sales that exceed industry norms. Concession Management Urban is uniquely qualified to manage and provide oversight for every phase of a vendor concession program. Our successful city and federal real estate management partnerships began in the mid 1990’s at both the city and federal level and are the result of applying our best practices from actual experience. Urban has the expertise and resources necessary to implement proactive management, leasing, development, and marketing strategies to achieve maximum revenue potential and other benefits for a concession program.
Urban has a proven track record of executing concession programs that not only produce a consistent revenue stream, but enhances the activation of public space as well. This dual effect creates a marketplace environment that is more lively, inviting, and convenient for the ultimate users: residents, workers, and visitors. In short, a place that becomes a welcome destination. Success Stories
Renovation Expertise |
|
Public/Private Partnerships |
 |