Real Estate Forum - March 2008

“Dealing with an EDC is a
collaboration, and the key is
to articulate what you’ll be
able to accomplish.”

ROBERT SEVIM

STUDLEY

importantly, we can be a good partner,” she asserts.

To illustrate that point, Olhasso points to Ontario’s recent acquisition of 8,200 acres of former dairy land for a mixed-use project comprising residential, commercial and recreational space. Last year, she says, Brookfield Homes began an extensive single-family development there, but ran into a cash crunch—as so many residential developers have done recently.

“We looked at the timing of the development impact fees,” she recalls, “and realized we would not need them until some of their homes were built, so we gave Brookfield back some of their fees until they’ve finished off all of the infrastructure.”

much more cost-effective, candidate. Our client had to evaluate what the expenses were, the kind of talent they could recruit, what the taxes would amount to and so on. We took all that information to WBC and they told us, ‘Okay, based on that, here are some of the programs you can qualify for.’ One of those was EDGE (Economic Development for a Growing Economy), the Illinois program that provides tax credits if you’re significantly expanding or starting an operation, making a considerable capital investment or creating a certain number of full-time jobs. And you have to prove that if it weren’t for the EDGE credits, you wouldn’t go to Illinois. That’s the all-important ‘but for’ clause.”

Such credits might include a 10-year reduction of taxes

High Marks From Tenant Reps

EDCs are becoming more imaginative and cooperative in their efforts to bring new business into their communities— especially in smaller markets, many of which are showing a newfound aggressiveness. According to a number of tenant reps, working with local, regional or state economic development corporations is becoming easier and more collaborative.

Robert Sevim, senior managing director in Studley’s Chicago office, suggests that the key to success in working with EDCs is to put the proposition simply: Here’s what we can do for you; what can you do for us?

Sevim recently worked with World Business Chicago to bring the new Big Ten Network to the Windy City. The sports channel will be located in a 44,000-sf space at 600 W. Chicago, formerly the Montgomery Ward & Co. Catalog House, a landmark building. The state of Illinois is providing a nearly $3.2-million business investment package to support the Big Ten Network.

“We talked with World Business Chicago about what the company did, the costs of doing business and how many employees would be retained,” he says. “We were very candid about the amount we might save if the project went elsewhere—Indianapolis being the other, and

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FOR EDITORIAL INFORMATION FOR ADVERTISING INFORMATION Contact John Salustri Contact Donald O’Keefe 212.929.6982 678.296.9812 j _{FsOaRlusEtDriI@TOreRmIAeLdiIaNnFeOtwRoMrkA.Tc}o _IOm_Nd _Fo _Ok_Re_Aef_De_V@_Er_Re_Tm_ISed_INia_Gne_INtw_Fo _Or_Rk_M.co_Am_TIONContact John Salustri Contact Donald O’Keefe 212.929.6982 678.296.9812 jsalustri@remedianetwork.com dokeefe@remedianetwork.com