High-Profile Mixed-Use Development a New Center of Attention
TIF Bond Financing Provides Solid Footing for New Owner
The Kenwood Collection is a 520,000-square-foot mixed-use development adjacent to Kenwood Towne Centre. The Port has been involved since 2007 with the redevelopment of this marquee site. Sycamore Township approved the Tax Increment Financing (TIF) resolution in 2007, and in 2008, The Port issued $20.43 million in TIF debt to fund the construction of a Port-owned parking garage.
Work on the $175 million project and parking garage stopped in late 2008 amid a complicated foreclosure case. Litigation primarily relating to the construction of the development prevented timely completion of the project facilities. In 2012, following the foreclosure proceedings, the development was purchased by a subsidiary of Phillips Edison. Phillips Edison also purchased all of the outstanding TIF Bonds.
Since 2012, The Port worked with the new owner of the property and the bonds to restructure certain aspects of the transaction and make arrangements for the completion, management and maintenance of the public parking garage. The Port resumed construction of the garage in 2013 and completed it in YEAR.
In 2015, The Port Board authorized a resolution allowing The Port to enter into a series of transactions and agreements related to the continued redevelopment, including a draft term sheet related to refinancing of the existing TIF Bonds.
In 2016, The Port approved took final action that allowed the issuance of TIF bonds, successfully completing the refinancing.
Sycamore Township is a diverse community with a thriving business district. It is governed by a board of three trustees and a fiscal officer. The Township operates with revenue from four JEDZ business districts and local real estate tax.
- Issued $20.43 million in TIF debt to fund a parking garage
- Project Finance consulting with new owner
- Successful refinancing of debt aligned with new ownership structure
"Dialogue with the Port (over the redevelopment scenarios) played a key role in our ultimate decision to proceed with the purchase of this property. I am confident of our ability to succeed not the least of which can be attributed to the leadership the Port provides."
David Birdsall, Former Phillips Edison Executive and Kenwood Collection redevelopment leader