North Central Region Community Development Core Competencies Course

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Wisconsin Basic Economic Development Course
Real Estate Development Reuse
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Gary Becker, CEcD

• Contact Information
• Partner
• Vierbicher Associates, Inc.
• 999 Fourier Dr.
• Madison, WI 53711
• [phone]
• gbec_at_vierbicher.com
• http//www.vierbicher.com

Executive Director Local Government Institute of
Wisconsin www.localgovinstitute.org
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Overview

• Introduction
• Review of Real Estate Development Process
• Panel of Experts
• Case Study Industrial Development
• Case Study Redevelopment
• Wrap-up

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Panelists
George Lightbourn Wisconsin Public Policy
Research Institute Chair, Monona Community
Development Authority Darsi Foss Chief,
Brownfield Redevelopment, Wisconsin Dept. of
Natural Resources Gary Gorman Owner, Gorman
Company Marilyn Haroldson, CEcD VP, Equity
Commercial Real Estate, LLP
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Presenters

• Bruce Kepner, CEcD
• Manager Economic Development, Alliant Energy
• Dan Pawlitzke, CEcD
• Economic Development Director, City of Two Rivers

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Real Estate Development Process

• Types of Development
• Relationship to Owner/Tenant
• Build-to-Suit
• Speculative
• Relationship to Site
• Greenfield
• Redevelopment
• Relationship to Public
• Public Initiated
• Private Initiated
• Public-Private Partnership

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Real Estate Development Process
Redevelopment Project Phasing
Land Building
Redevelopment Project Phasing
Land Building
Redevelopment Project Phasing
Land Building
Pre-development Feasibility Phase
Building/Site Initial Evaluation
Pre-development Feasibility Phase
Capital
Building/Site Initial Evaluation
Pre-development Feasibility Phase
Information
Capital
Building/Site Initial Evaluation
Information
Capital
Information
Market Analysis
Market Analysis
Market Analysis
Evaluate Financial Capacity
Concept Planning Phase
Organization
Preliminary Concept Plan Design (Schematic)
Evaluate Financial Capacity
People
Concept Planning Phase
Organization
Preliminary Concept Plan Design (Schematic)
Evaluate Financial Capacity
People
Concept Planning Phase
Organization
Preliminary Concept Plan Design (Schematic)
People
Political/Regulatory Feasibility
Identify Site Issues
Political/Regulatory Feasibility
Identify Site Issues
Political/Regulatory Feasibility
Identify Site Issues
Set Project Goals
Concept Plan DesignRenderings
Set Project Goals
Concept Plan DesignRenderings
Set Project Goals
Concept Plan DesignRenderings
Financing Construction and Operating Phase
Preliminary Cost Estimates (Budget)
Site Control
Financing Construction and Operating Phase
Preliminary Cost Estimates (Budget)
Site Control
Secure Financing
Financing Construction and Operating Phase
Preliminary Cost Estimates (Budget)
Site Control
Secure Financing
Cash Flow Pro Formas
Secure Financing
Cash Flow Pro Formas
Cash Flow Pro Formas
Plans Specs
Financing Plan (debt equity, grants, credits)
Plans Specs
Financing Plan (debt equity, grants, credits)
Plans Specs
Financing Plan (debt equity, grants, credits)
Contractor Negotiations
Contractor Negotiations
Operating Marketing Plan
Contractor Negotiations
Operating Marketing Plan
Operating Marketing Plan
Begin Construction
Begin Construction
Public Entitlements
Begin Construction
Public Entitlements
Secure Tenants
Public Entitlements
Secure Tenants
Secure Tenants
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Questions

• How do developers decide on a site/project?
• How do municipalities attract a developer?
• What makes a good site for development?

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Case Study

• Industrial Development Bruce Kepner, CEcD