Municipal & Real Estate Finance Success Stories

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Major Retail Center, Village of Palatine, Illinois (2nd Feasibility Report for Palatine)

Principals of NexGen prepared a TIF Financial Feasibility Report for a contiguous TIF area. Our work included determination of market conditions, feasibility of additional retail space, and estimation of funds deposited into the special allocation fund to support a bond issue. Monies that were pledged to the special allocation fund included incremental property taxes and a portion of the Village sales tax.

Retail Development, Palatine, Illinois (1st Feasibility Report for Palatine)

Principals of NexGen prepared a Financial Feasibility Report for the City of Palatine to determine the estimate TIF revenues to be generated by a proposed development. Our work included determination of market conditions for the feasibility of retail space, and the estimation of incremental property tax revenue.

Downtown Redevelopment, Chicago, Illinois

Principals of NexGen prepared a Fiscal Impact Report to assist the City in determining the amount of the TIF subsidy granted to the developer. This report analyzed the direct and indirect economic impact of this project in each sector of the Chicago economy. The report also analyzed the direct and indirect state and local tax impact to the City and State over a ten-year period.

Economic Adjustment, Marketing Strategy, and Tax Analysis, Effingham, Illinois

Principals of NexGen completed an economic development strategy for the City of Effingham. We analyzed Effingham’s existing industrial base and business location characteristics, such as transportation, labor force, taxes, incentives and utilities, relative to comparable and competitive locations. Our study targets key industry sectors, and specific firms within those sectors, toward which Effingham should focus its marketing efforts. We identify action steps the City should take to attract these firms, including organizational changes, infrastructure, marketing, tax structure, and incentives.

Economic Study for the Madison Street Commercial Corridor, Oak Park, Illinois

Principals of NexGen were directly involved with an economic analysis of an aging commercial corridor in the Village of Oak Park, a suburb of Chicago. We analyzed area demographics, coverage patterns and development trends, conducting interviews with key stakeholders and existing anchors in the corridor. We conducted financial analysis to assess the performance of the current Tax Increment Financing (TIF) district, of additional funding opportunities such as bonding, and of the overall funding capabilities of the Village for acquiring, assembling, and redeveloping the corridor. Our analysis will help build the strategy to retain and leverage existing anchors, identify key redevelopment sites, note residential and retail market opportunities, and articulate the policies and other roles for the Village in the redevelopment strategy.

Motion Picture Industry, Chicago, Illinois

Principals of NexGen prepared an Economic Impact Report to assist a group within the motion picture industry to lobby against a Chicago municipal tax. This report analyzed the direct and indirect economic impact of one motion picture in each sector of the Chicago economy. The report also analyzed the direct and indirect state and local tax impact to the City and State over a ten-year period.

Governor’s Economic Competitiveness Task Force – State of Iowa

Principals of NexGen consulted to the Task Force and developed comprehensive recommendations for changing the state’s tax structure to make it more competitive for future job growth. A review of literature in the field was undertaken and compiled. A comparison to other competitive state tax structures was completed. We interviewed the state’s public and industrial leaders by phone and in-person, including focus groups on problems industry was experiencing with state policies. The result was a near-term (1-3 years) and long-term (4-10 years) tax and regulatory change program. We worked with the state staff to quantify the impact of these changes on state growth and tax revenues. A variety of scenarios for regulatory reform were proposed.

Location: St. Charles, Illinois Engagement: Preparation of Eligibility Report and Redevelopment Project and Plan

NexGen prepared an Eligibility Report and Redevelopment Project and Plan for a mixed-use Redevelopment Project Area (commonly called “TIF District”) on the east side of town.

Location: St. Charles, Illinois Engagement: Preparation of tax increment projections to support TIF bond and bond sizing estimates

NexGen prepared incremental property tax projections to be included in the official statement for a TIF alternate bond with a general obligation credit enhancement. NexGen also prepared estimates of the par amount of bond as well as net proceeds given different municipal finance structures.

Location: St. Charles, Illinois Engagement: Preparation of financial pro-forma analysis to determine requisite TIF subsidy to developer

NexGen prepared a traditional “gap” analysis to determine and support the amount of TIF assistance given to the developer. This analysis entailed preparing cash return on investment with and without TIF assistance and return on equity with and without TIF assistance. The City and their attorneys used this analysis as an integral part of the redevelopment agreement negotiations.

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