Hunden Strategic Partners Announces Successful Developer Solicitation Process for Badgerow Building in Sioux City
Sioux City council votes unanimously to approve a development and minimum assessment agreement with an Omaha-based developer.
CHICAGO, November 24, 2020 (Newswire.com) - Hunden Strategic Partners (HSP), a global real estate development advisory practice headquartered in Chicago, guided the City of Sioux City in Iowa through a successful developer solicitation and selection process for the redevelopment of the historic downtown Badgerow Building. Last week, the Sioux City Council voted unanimously to approve a development and minimum assessment agreement with an Omaha-based developer for the Badgerow Building redevelopment project.
HSP managed every step of the developer selection process on behalf of the City, including the creation of the RFQ and RFPP documents, on-site and virtual tours, proposal submission reviews and assessment, and final interviews. At the conclusion of the review process, HSP recommended that the council approve an agreement with Clarity Development. Clarity plans to purchase the building from the City for $1 million and redevelop the property as Badgerow Developer, LLC.
This is the fourth study and process that HSP has successfully completed for the City, including the recently opened Courtyard Convention Center Hotel and Renovated Sioux City Convention Center.
Clarity’s $23 million redevelopment budget will transform the Badgerow Building into a mixed-use facility with a high-end restaurant, a cocktail lounge, and Class A office space on the first two floors, 71 market-rate apartments on floors 3-11, and a health club on the top floor.
“HSP was pleased to help Sioux City work through a complex redevelopment process, especially during the height of the COVID-19 pandemic,” said CEO of HSP, Rob Hunden. “Many thought development would come to a standstill during the spring of 2020. HSP and the City worked aggressively to turn that notion on its head and moved quickly to lock in a major investment in downtown.”
The developer has committed to a minimum assessed building value of $10.928 million following the project’s completion. In return, the City will provide a grant equal to 100 percent of new incremental property taxes for ten years, and an amount equal to 75 percent of new incremental taxes for an additional five years. Additionally, the City will support the developer’s application for historic tax credits and lease 170-200 parking spaces in the parking ramp system.
“I think that the move to purchase the building, the resale of it, the development, the entire project is magnificent. It’s wonderful we’re going to get our tax dollars back out of it,” Councilwoman Julie Schoenherr said. “I’d like to take this as an incentive for our council to explore some more creative ways to open up some housing in Sioux City.”
The renovation has an estimated completion date of Dec. 31, 2022. When asked about how realistic that timeline is, Economic Development Director Marty Dougherty said:
“They’re very confident. They’ve already got bids. They’re really kind of ready to go. They want to close before the end of the year on the sale,” Dougherty added.
HSP specializes in market and financial analytics and public-sector advisory for public-private partnership projects like the Badgerow Building across the country. These types of projects can really transform a downtown and create a strong sense of ‘place’ if executed correctly. HSP is proud to have contributed to this exciting new addition to downtown Sioux City’s real estate landscape.
Hunden Strategic Partners is a leading real estate and destination development consulting firm with professionals in Chicago, San Diego, Indianapolis, and Minneapolis. The firm offers a full range of development planning, market, and financial feasibility, economic and impact analyses for specialty destination assets such as sports facilities, mixed-use and entertainment districts, convention and expo centers, hotels, entertainment venues, theme parks, recreation facilities, and other economic development projects.
Source: Hunden Strategic Partners
Categories: Real Estate Investments