Public-Private Partnership Benefits

The Glen
THE GLEN
-An economic development case study
of public-private partnerships
An economic development
case study
Presentation
for :
National Council for
of public-privatePublic-Private
partnerships
Partnerships
Presentation for :
National Council for
Public-Private Partnerships
Donof
Owen
Don Owen, Village
Glenview
Deputy Village Manager
Village of Glenview
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The Glen
Presentation Agenda
 Overview: Glenview & GNAS
 Public-Private Partnership Benefits
 Results
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The Glen
Glenview, Illinois
 Northeast Illinois
 20 Miles North of Chicago
GLENVIEW
 44,443 Residents
 13.5 Square Miles
 Home Rule Municipality
 Moody’s Aaa-rated
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The Glen
“GNAS”:Glenview Naval Air Station
 Former Naval Air Station
 1121 Acres
 15% of Land Mass
 Geographic Center
GNAS
 2nd Largest Employer
(~2000 Jobs)
…now known as The Glen
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The Glen
Closure Decision/Key Actions
 1993 – Base Closure Recommendation
 1995 – Base Closure
 1996 – DoD Record of Decision
 1997 – Economic Development Conveyance
 1998 to date – Development (substantially complete)
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The Glen
Public-Private Partnership
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Private Sector Partners
Village as Master Developer with advisors
 Mesirow Stein Real Estate – Development Advisor
 Camiros, Ltd. – Land Use Planner and TIF Consultant
 Skidmore, Owings & Merrill – Master Planner
 MWH – Infrastructure Design/Construction Management
 Robbins, Salomon & Patt – Legal Advisor
 URS Corporation – Environmental Advisor
 R.V. Norene and Associates – Financial Advisor
 Chapman and Cutler – Bond Counsel
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Public-Private Partnership Benefits
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Benefit #1: Integration
Public-Private Partnering
 Learn each other’s culture
 Understand each other’s strengths/weaknesses
 Use the best strengths of both worlds
Teaching
 Community Goals (to private partner)
 Time is Money (to public partner)
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The Glen
Benefit #2: Credibility
 Communities are regulators
 Private sector partner brings essential“developer”
skills and market credibility to the team
…marketplace reacts favorably to a
reliable business partner
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The Glen
Benefit #3: Property Acquisition Skills
 Created comprehensive Business Plan
 Drafted 1000+ page Economic Development
Conveyance application
 Established aggressive negotiation parameters
 Resulted in No Cost EDC
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The Glen
Benefit #4: Value-Added Design
 Master Plan by SOM




Market-tested Uses
Expanded Zoning (R6/SLE/MURC)
Optimized use of density/open space
Transit-oriented
 Design Guidelines
 Family-oriented
 Pedestrian-friendly
 High quality
 Retain Navy Heritage
 Set the bar at highest level
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The Glen
Benefit #5: Infrastructure Management
 5-phased plan to reduce risk
 On site demolition/crushing of
300 acres of runways (1M cy)
Saved $22.5 million ($5.5M vs $28M)
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The Glen
Benefit #6: Marketing Prowess
 National Marketing Process
 Timing at Top of the Market (MSRE pushed Board hard)
 Public Negotiated Bid w/ BAFO
 Land Sales: $225M+ vs $76M
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Benefit #7: Risk Management
 Created multi-faceted Strategic Plan
 50-Page Pro Forma (to manage $557 million TDC)
 Tax Increment Financing (TIF) District management
 OPM: ~$16 million in federal, state, and county funds
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The Glen
Benefit #8: Expand/Reduce Staff to Meet Needs
 Only 12 Fully-Dedicated Public Employees
 Access to hundreds of subject matter experts
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Results
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•Residential – 2000 units
Over 5000 residents
•SLE/Open Space – 400+ ac
•Office/Light Ind – 1M sf
•Retail – 1M sf
Over 4000 jobs
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Conclusions
 Public-Private Partnership can bring many advantages:
 Integration of private-sector mentality
 Credibility
 Land assembly skills
 Leading edge design principles
 Project management
 Broad marketing skills
 Risk management
Team Effort has created Success
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