SPRINGFIELD

DEVELOPERS
GUIDE

WRITTEN & PUBLISHED BY

Downtown
Springfield, Inc.
PRESENTED BY

Commercial
Real Estate
Network

INTRODUCTION
Springfield is the heart of Illinois.
That is what the Long Nine envisioned, Abraham Lincoln among them,
in 1839 when the capital moved to Springfield from Vandalia.
The core of that vision was to create a community that would serve as
a shining beacon of government, commerce and community that would
make Springfield the best capital city in America.
Development has proceeded from that dusty or muddy (depending
on current weather conditions) dot on the prairie landscape, into a
community that has, in many ways, lived up to the Long Nine vision
of a shining capital city.
The coal mining and manufacturing that dominated the better part of
the first 150 years of community history have laid the backbone and
groundwork for the 21st Century Springfield.
Development has proceeded from the 19th Century core to envelop
larger expanses of Sangamon County within the expanded city limits.
A renewed interest in historic preservation and development at the core
of the city; including adaptive re-use of existing 19th and early 20th
Century structures has set the stage for development in the central
city.
The advent of the Mid-Illinois Medical District at Springfield will enable
the community to maximize its potential as a regional health care and
medical research giant in the industry.
Development in other parts of the community will assist the ever
burgeoning population with its needs for goods and services necessary
to sustain a healthy and growing regional economy.
The publication you are now beginning to read will assist you in your
quest to help Springfield develop and thrive.

TABLE OF CONTENTS
Chapter 1: PREPARATION

.............................. 5

Chapter 2: PROFESSIONAL ASSISTANCE ................. 11

Chapter 3: FINANCIALS .......................................19
Chapter 4: SITE SEARCH & SELECTION.................... 23
Chapter 5: CODES & REGULATIONS ....................... 27
Chapter 6: FUNDING PROGRAMS .......................... 31
Chapter 7: TIMELINES ...................................... 41
Chapter 8: MARKETING & PR .............................. 47
Chapter 9: ADMONITIONS & OPPORTUNITIES ............ 51
Chapter 10: TOP TEN LESSONS .............................. 55
Chapter 11: COMMERCIAL REAL ESTATE NETWORK......57
DIRECTORY: REALTORS ...................................... 59

CHAPTER ONE

PREPARATION

So you want to be an urban pioneer?

So you loved the ambiance
downtown during dinner and
the show at the Hooglan
Center you saw last week?
Perhaps you even envied
those who were able to
walk home just a few blocks
from the Summer Serenade
concerts last year or you
havent missed a First
Night since they began.
Maybe you love taking your
family to a day at Knights
Action Park followed by a
drive-in movie but thought
a restaurant would go great over here or you love getting
all your fresh vegertables at the Farmers Market but think
a year round market would be ideal. Perhaps you attend
most of your neighborhood mixers and fundraisers and
want to help your community grow or find yourself driving
by an old hot spot and say to yourself Someone should do
something with that place.
Whatever draws you to becoming an urban pioneer,
this guide is for you. There are any number of interesting
buildings only blocks away from all the action. You may
have the kernel of a plan for renovation and an idea of
just the right business or residential opportunity or both but
need help.
Here are eight key issues you will want to consider before
you commit your time, money and talent to the project:

The reason you are interested is the most basic building

ONE

Motivation
What is the primary goal what makes you want to be part
of the growth of Springfield? Inconveniences? Love of the
community? Are you an amateur historian? Or are you
motivated by making money? Each of these dreams brings
with them sobering realities. An honest self-appraisal is the
foundation for creating a successful project.

block for success of your project. If your primary goal is

making money, you may need to wait for someone to give
you a building! The cost of developing or renovation and the
expense of professional help may put any other property
out of reach.

A number of buildings in the

downtown area are zoned R3
or R-4, which allow housing
over the storefront (retail or
commercial business)

If your focus is historical restoration, you need to make

sure you have substantial resources available. The
rearch, materials
and labor costs
of accurate
restoration will
stretch every
project budget.
There should be
no illusion that
you will recover
your restoration
costs dollar for
dollar. Are you
doing the project alone or with one or more partners? More
hands, diverse skills and pocketbooks can transform a dream
into reality. Whatever your motivation, you will find that
spreading the financial risk and sharing the responsibilities
of development can help secure your goals.
Building Use
Do you plan residential, commercial, industrial or mixed
use? What is the current zoning on your building? . Have
you talked to your Alderman, lawyer or City official about
changing zoning? Or applied for a planned mixed-use
development? How about the use of the building over the
years? Beyond the environmental assessment required by
lenders, has this building ever housed a business that used
hazardous products? You will need to resolve any questions
about the building history and the viability of your future
plans before moving ahead with the purchase of the site.

ONE
6

Project Goal
Is the purchase for owner occupancy, resale, condo or
rental. If you plan to occupy the building yourself, this may
well affect your eligibility for: Historic Tax Credits (HTC),
City funding, the legal structure of ownership, and private
lending! The State of Illinois does not have a program to
underwrite HTC for residential projects. You will not be
able to own the building outright, at least until the 5-year
LLC (Limited Liability Company) with your equity partner

expires. Further, the City is not in the business of funding

private housing units, particularly when public tax funds
are involved. You must demonstrate public benefit from the
project and you would be wise to have other commercial or
residential tenants who will also share in the improvements.
On the other hand, private lenders may be willing to look
at the project as a residential rather than commercial
project, requiring less equity investment up front because
the building owners do not demand the same Return on
Investment or Return on Equity required in a standard
commercial transaction.
Each project carries with it unique considerations, whether
it will be owner-occupied, or comprised of units for rent or
resale.

There are existing projects

around town that did not require
the next born child as collateral.
However, it should be said that
most financial advisors and others
experienced in development
caution that lenders do not view
your labors as comparable to
dollars invested. In general, for
them to risk their capital, they
need to know that the owners
have done the same.

Funds from various public and private sources carry with

them explicit or implicit stipulations that will impact your
project. Your ability to change the destiny of your project
during the period of involvement of the funding source will
be limited by those restrictions. You will need to weigh and
balance all these considerations before embarking on a
final course.
Financials
What resources do you bring to the table? Are you young,
ambitious and idealistic with lots of energy and some
construction skills? Or are you a grizzled veteran of the
work world with a sizeable retirement nest egg that you want
to protect? How much money are you willing to commit to
a project? Do lenders value in-kind contributions of labor
(sweat equity)? Is it possible to undertake a development
project without a substantial bankroll? Not likely but
NEVER say never!

The return on investment is typically an unleveraged

investment return analysis. The market for the unleveraged
return (ROI) is determined by the rate of return required by
institutional investors paying 100% cash for a fully-stabilized
development and then adjusting for both construction and
stabilization risk.

ONE

Returns
Prospective investors evaluate projects based on ROI
(return on investment) and ROE (return on equity). Before
we begin, here are two definitions: 1) leveraged is with
debt, and 2) unleveraged is without debt.

The return on equity is a fully-leveraged return on investor

equity return analysis. The two benchmarks of return are
determined by the current market for institutional money
invested in various types of real estate projects, adjusted
for the risk on the specific project. The market for this
benchmark is also determined by the rate of return required
by institutional investors.
However, it is the institutional investors that will contribute
real development equity to a project. The most common
difference between mezzanine funding and equity is that
the mezzanine source is ahead of the true equity in terms of
payout and profit distributions. Generally, the order of payoff
is senior debt, mezzanine funding source and then the equity
investor. The current market for true equity is 20-25% and
18% for a mezzanine funding source. These benchmarks are
adjusted for each project subject to negotiation and may vary
a little. For example, it is not uncommon for an equity source
to require 35 40% for a moderately more risky project.
Team Structure
You may want to seek professional advice in determining
the most appropriate form of organization for your endeavor.
Even after start-up, you may wish to modify your legal
structure due to changes in tax laws or your own fluctuating
need for capital. The nature of the loans on your development
project will also impact your review. It is important to weigh
all advantages and disadvantages of the various business
forms so that you do not decide on a business structure
solely because of tax implications.

ONE
8

Key forms are:

Sole Proprietorship
This is generally the least expensive and simplest
to form. You and the business are the same entity.
While you assume all debt responsibility, you also
reap all profits (and pay taxes on your individual
income tax return). Financial capital may be less
accessible to the owner.
Partnership
This is defined as an association of two or more
persons acting as co-owners of a business for profit.
Each partner contributes money, property, labor or
skill. A partnership may be general or limited, with

a key distinction being the limitation of liability for

limited partners who are liable only for the amount
of their equity investment. In Illinois, all partnerships
must have at least one general partner.
Limited Liability Company
An LLC is a relatively new form of business
organization created by statute in Illinois. It provides
its owners with limited liability, flow-through tax
treatment and operating flexibility by allowing
participation in management of the business. An LLC
is formed by filing articles of organization with the
Secretary of State and paying the required filing fee
and annual renewals. Members may elect to have
interests in an LLC just as partners in a partnership.
An LLC does not issue shares of stock but is required
to file annual reports. All members can manage the
business or elect one or more managers to run the
business. An LLC is required to adopt an Operating
Agreement, which provides operational details as
well as how the members relate to each other. Legal
counsel and tax advice should be sought before
setting up an LLC.

ONE

C-Corp or S-Corp
A corporation is legally a separate entity from
the individuals who own and operate it. It is the
most complex form of business organization with
shareholders as owners and limited liability in regard
to the corporation. The shareholders elect a board
of directors who in turn elect the president who
operates the business. The corporate limited liability,
however, does not extend to officers, who can be
held personally liable for all unpaid federal taxes,
including withholding taxes for employees. The
distinction between C and S-Corporations pertains
to taxation and the percentage of revenues from
passive income. It is highly recommended that you
consult with an attorney to discuss the advantages,
disadvantages, regulations and requirements of Cand S Corporations.

Every corporation must register

with the Illinois Secretary of State
by filing Articles of Incorporation.
Only corporations may and must
use Corporation, Corp.,
Inc. or Incorporated in their
business titles. They must
file annual reports with the
Secretary of State. The State
also tracks name availability for
corporations only.

ONE

10

CHAPTER TWO

PROFESSIONAL ASSISTANCE

Is There a Doctor in the House?

It goes without saying that the more you can do yourself,

the less need you will have for experts. For example, if you
have strong accounting skills, you may be able to create
much of the financial model yourself. Or you may be able to
save some architectural fees if youre facile with a drafting
program. (You still must have signed drawings from an
architect for mixed use rehabs.) Perhaps your renovation
is limited and can be handled by an experienced general
contractor and does not require an architect. Maybe there
is a lawyer in the family who will consult at no charge or
an experienced developer who will assist along the way.
But no matter how facile and experienced you are, you will
require some professional support for your project. These
professional fees are often included in the project budget
under the heading of soft costs.
Here is a list of experts you may need to hire:
Attorney
Fees: range of $2,000 $10,000.

TWO

The litigious nature of the American

society is a given. To protect
yourself, your partners and heirs,
legal advice is a must on your
building project. Actually, there are
four areas of your enterprise that
may require an attorney:
Property acquisition: legal
research prior to the offer;
survey and land description;
negotiations and closing.
Partnership or incorporation:
if you decide not to work alone,
you need help to research and
execute partnership or papers
of incorporation.
Tenant leases and contracts.
Historic tax credits: Even an experienced real
estate attorney may not have the expertise to
deal with the intricacies of this special form of real
estate syndication. Shop for an expert who has

11

If you are looking for public

support, you will want to
identify and engage an expert
with the arcane language
and rules that pertain to the
specific resources you seek.

both the experience and the contacts with lending

institutions who are in the business of buying these
credits. They will obtain the top price for the resale
of credits and help you negotiate the complex legal
and tax issues that can impact your project and your
personal tax status. You can get more information
on available Historic Tax Credits from the Illinois
Historic Preservation Agency.
Financial Real Estate Advisor
Fees: range of $5,000
- $60,000 but may vary
according to the nature
and scope of the work.
Most of us are not financial
wizards or experts at
the language or form of
a qualified financial real
estate advisor. There are a
number of financial reports
required to evaluate and
apply for public and private
funding in support of your
project. The majority may be outside your experience and
several far outside your comfort zone! Even if the forms
are not daunting, the specifics of real estate syndication
and government funding will begin to sound like a foreign
language. You will want a translator. If you are looking for
public support, you will want to identify and engage an
expert with the arcane language and rules that pertain to
the specific resources you seek. Included in this advisors
area of expertise:

TWO
12

Project budget: You may be comfortable

with the budget process at work, preparing a
preliminary budget for your building site after visits
and discussions with your architect, developer,
contractor and real estate advisor. (See Chapter
3 for more details)
Working (operating) budget: Projected and
actual expenses are often very different. While
you will have allowed some room for surprises in
the project budget (usually 10 20% of all other
expenses and titled change order allowance or
contingencies), you will also want to track the real

costs. (See Chapter 3 for more details)

Construction loan: You will likely need help with
a construction phase loan, requiring requests for
payment to the vendors. These requests can be
handled for a modest fee by a title company. (See
Chapter 3 for more details)
Standard Real Estate Analysis: This is an
important aspect of development and one where the
non professional can lose a grip on reality. It includes
an amortization schedule (showing your expected
mortgage balance and payments over the term of
the loan to a final balance of zero), which allows you
and prospective investors to evaluate the wisdom of
the investment. Will you be upside down in your
investment if you need to sell in the near future? It
also includes the Return on Investment and Return
on Equity that serve as the basis
For the Gap Analysis below. These tools allow the
owner, team and prospective investors to evaluate
the project. (See Chapter 6 for more details)

Accountant
Fees: vary according to the nature and extent of the
work provided.
A word of caution: you should keep your own tax and
financial planning separate from the project. Your personal

TWO

Gap Analysis: When you intend to request

government funding, the project must meet the needs
of investors and also conventional city expectations.
The gap analysis evaluates the project with and
without government assistance over a reasonable
period of projection, in many cases 10 years. It
includes an estimated fair market value for the project
upon completion. (See Chapter 6 for more details)
Other funding requirements: Because TIF (see
explanation in Chapter 6) is self-funding, it involves
either property tax rebated (similar to an abated
tax) or rising tax revenues to cover an initial cash
investment up-front. Therefore, tax increment
projects need to be prepared for submission to the
City. In addition, your real estate advisor may provide
strategies and/or coaching for visits or participate
in actual presentations and negotiations with the City
or other funding sources.

Because TIF is selffunding, it involves either

property tax rebated
(similar to an abated tax)
or rising tax revenues
to cover an initial cash
investment up-front.
Therefore, tax increment
projects need to be
prepared for submission
to the City. In addition,
your real estate advisor
may provide strategies
and/or coaching for
visits or participate
in actual presentations
and negotiations with
the City or other funding
sources.

13

Some projects will require only

minor design. These could
include buildings that have
been restored by a previous
owner or buildings of fairly recent
vintage. You may still want to
pay an architect to participate in
early inspections and advise on
codes. You want to make sure
your project is viable (structurally
as well as financially) and that
there are no code violations that
could prove a deal-breaker. If you
have a major renovation project
in mind, dont ever assume you
can do this without a pro!

accountant will provide advice on tax consequences,

investments, and impact on retirement. You may end
up paying both advisors for a consultation if your project
involves complex funding or tax issues
Architect
Fees: between 7-13% of the project
Before you hire, make sure you are clear on the nature
of the project and your financial goals and capacity. You
may want to ask the architect you select to conduct a walkthrough inspection with you and assist with evaluation and
appraisal of possible sites. If you are tackling an older
building, particularly one with historic status, you will need
an experienced hand to navigate through the applications
for historic status and Tax Credits (Part 1, 2, and 3). More
important, your architect should have experience working
on restoration projects in older buildings. After a number
of consultations, he/she will provide renderings (useful for
presentations and marketing efforts) and final architectural
drawings (needed to obtain bids from sub-contractors,
create a final project budget, and for the use of the City
Building Department for plan review prior to issuing a
building permit).
Working with the general contractor, your architect will
research unfamiliar local, state and federal codes applicable
to your building and should be available to help with
negotiations on these matters. It is in your best interest that
he/she have a good working relationship with local officials
to assist with meetings on City funds. The architect will
hire a structural engineering firm if one is needed to help
create plans to address structural problems. If experienced
with historic building projects, he/she may shepherd your
project through the application process for the Historic Tax
Credit, including negotiations with state and federal officials
responsible to give the thumbs up to funding.

TWO
14

Some projects will require only minor design. These could

include buildings that have been restored by a previous
owner or buildings of fairly recent vintage. You may still
want to pay an architect to participate in early inspections
and advise on codes. You want to make sure your project
is viable (structurally as well as financially) and that there
are no code violations that could prove a deal-breaker. If
you have a major renovation project in mind, dont ever
assume you can do this without a pro!

Developer
Fees: 4 15% of the construction cost of the project

The developer is active from

the beginning to the end of the
project, starting with research
and site selection. The primary
goal of a developer is to put
the deal together from the
construction to the financing of
the project. Developers are also
instrumental in research and
negotiation on local, state and
federal regulations, although the
architect and contractor can help
educate the owner/developer.
Other responsibilities: timeline,
budget preparations and
financials, and hiring of the
contractor, who hires the subcontractors and oversees the
actual construction phase.

Architects report that the

major sources of conflict
with clients are: 1) schedule
overruns; 2) escalating costs;
and 3) performance issues.
Responsible parties for these
problems may include the
contractor (and the subs),
the architect, the developer,
and even the client! The
best way to reduce problems
is strong planning, clear
contracts/agreements, and
preparation for contingencies
(change orders).

Many urban pioneers choose to act as their own developers.

Often a project in downtown Springfield is not affordable
with the hiring of a developer, contractor and other
professionals.
General Contractor (GC)
Fees: 8 15% of the hard construction costs of the
project.

TWO

This position is another area where urban pioneers attempt

to save money. Unless you have experience with the
construction process and possess substantial business
management experience and strong organizational skills,
serving as your own contractor is a little like representing
yourself in court: you may have a fool for a client! You should
consult with an experienced contractor and then proceed
at your own peril! Assuming you employ an experienced
professional, make sure the contractor has a license and
insurance, with both liability and workers compensation.
Expect the contractor to obtain appropriate permits as the
job progresses. If the GC is not going to work with you on
budget preparation and the project time, he/she should
be expected to review these documents. Another task

15

before beginning construction is thorough research and

negotiations on local, state and federal regulations. On
these issues the contractor should work closely with your
architect and the appropriate government agencies.
Expect the GC to hire and schedule sub-contractors. He/she
should be expected to be on-site to supervise their project
sub-contractors (subs) and employees (often rough and finish
carpenters or general laborers for demolition). Contractors
are also responsible to hold subs accountable for the quality
of their work and completion on time. Contractors should
apply for building permits in their own names, leaving you
free of liability. Approvals come at the end of the permitting
process and are usually required for the electric, heating,
and plumbing work, among other things. Make sure your
contractor arranges for the required inspections when work
is completed and hold him responsible for those required
by the code authority. Architects report that the major
sources of conflict with clients are: 1) schedule overruns; 2)
escalating costs; and 3) performance issues. Responsible
parties for these problems may include the contractor (and
the subs), the architect, the developer, and even the client!
The best way to reduce problems is strong planning, clear
contracts/agreements, and preparation for contingencies
(change orders).
Real Estate Appraiser
Fees: $1000 - $3,000.
Often required to obtain a mortgage, this inspection is
recommended for peace of mind of the purchaser as
well. The bank will want to use an appraiser of their own
choosing.
Banker
Fees: negotiable.

TWO
16

Four phases of the project may require funding from a

lender:
1) the origination mortgage at the time of purchase
2) a construction loan (or line of credit)
3) a consolidated mortgage (combining the principal/

interest from the construction loan with the origination

mortgage),
4) equity partnership for Historic Tax Credits.
You will want to talk to at least three lending institutions
before committing for each phase. You may want to consider
some or all of the following: Do you have a longstanding
banking relationship? Does your bank specialize in any of
these types of businesses? Are you comfortable dealing
with a large bank domiciled out of state or do you prefer
local lenders? Who does your developer, contractor,
architect or accountant recommend, particularly for the
equity partnership on the Historic Tax Credits?
City Alderman
Fees: none.
This may seem a strange addition to the list of experts
on your project. But whatever you are planning to do with
your building, the City is interested! Chances are that City
Council members representing downtown wards know a
great deal about city requirements and the latest available
funding. They are aware of various codes and restrictions,
and which City department handles which kind of requests.
They may act as ombudsman for you in meetings with City
officials. If they are familiar with your project, they will likely
advocate for you on the floor of City Council when the time
comes for a vote on funding for your project. They may
also provide invaluable networking assistance. You could
not afford to pay for the expertise and quiet support they
will bring to your project!

TWO
17

TWO

18

CHAPTER THREE

FINANCIALS

Help with financial information is typically needed from

an accountant, attorney or bookkeeper for development
projects. Here are some basics every would-be owner/
developer needs to know.

Property Appraisal and County Assessment

There are several
ways to evaluate your
property. A simple
way to get an idea of
the property value for
no cost is to call or
stop by the Sangamon
County Assessors
office (phone # 7536725). You can also
access their website
at www.co.sangamon.
il.us They can provide
a fair market value
for the property. The
City will likely require a
figure from the County
assessor if TIF funding
is under consideration
(see Chapter 6).
However, in many
cases the Countys fair market value will be conservative.

The best way to arrive at a

property value is with an appraisal
done by a paid professional.
Banks will usually make this
a requirement. The cost will
typically run $1,000 - $3,000,
depending on the size and value
of your building. This figure will
help determine the amount the
bank will loan you and what kind
of equity and/or gap financing
may be needed.

Real estate agents are another source for property

evaluation. Many are familiar with the real estate market
and will provide a written report on value.
Environmental

THREE

You will want to make sure the property being considered is

free of environmental issues such as ground contamination
from petroleum products, asbestos and lead based paints.
You will want to consider the past uses of the property, the
age of any existing structures as well as adjacent sites that
could have an environmental impact on your property. At the
very least, the bank will do an environmental questionnaire
to determine environmental risk. Properties with potential
risk or larger projects will normally trigger an environmental
assessment provided by a professional environmental firm.

19

Another requirement of a sound

business plan for construction,
rehabilitation, restoration or
renovation is a project budget. You
can get assistance in completing
this from your architect and/or
general contractor. There are
sample budgets included in the
appendix of this manual.

A property with undetected environmental issues can cause

significant problems for the owner in regard to cleanup and
liability.
Plans, Specs
On any construction, rehab, restoration or renovation project,
a set of plans showing foundation, floor plan for all levels
and exterior views for all sides of the property is needed.
In addition, a description of materials, or specifications, is
needed.

Project Budget and Working Budget

Key items include SOFT COSTS: legal fees; carrying
costs (interest during construction loan); architectural and
accounting fees; general contractor and developers fees;
and HARD COSTS: excavating and grading; foundations;
concrete flatwork; well and septic; roof; masonry; heating,
cooling and ventilation (HVAC); plumbing (including fixtures)
and electrical (including fixtures); carpentry, plastering,
painting, insulation; fireplaces and elevators; gutters and
downspouts; landscaping; building permits; driveway and
parking lot; millwork (cabinets and countertops); windows
and doors; siding; structural steel and wood support beams;
apartment appliances and storage systems.
Often overlooked in the initial budget preparation:

THREE
20

Water, sewer and sprinkler hook-up to City supply

Legal fees for incorporation or condo conversion
(associated with Historic Tax Credits)
Elevator shaft and machine room work including crane
rental
Hot water heater and water softener
Builders risk insurance
Renovations or equipment such as HVAC for existing
tenant space
Exterior storefront or decorative finishing touches, curb
cuts for garage access, security systems
Surveys and appraisals
Exterior sidewalk
Driveway or parking lot expenses
Carrying costs or interest on the construction
loan if the project takes longer than planned
One critical expense line is contingencies, or change order
allowance. No matter how thoroughly you research your
project and how many quotes you obtain, it is guaranteed
that you will discover unforeseen expenses as the project
progresses.

It is rare that a project does not end up costing more than

budgeted. A contingency for 20% of the project is not
uncommon.

Operating Budget and Cash Flow

Any investor or loan institution will want to be sure that
the project is viable after it is completed. So the next step
in a plan is to create an operating budget and cash flow
projections. These projections will include income and
expenses generated by the project once it is up and running.
It is important that the project produces adequate cash flow
to cover all expenses including debt service.
Escrow
It is recommended to set aside a pre-determined amount
each month for real estate taxes, insurance and major
maintenance projects (roof, parking lot resurfacing, exterior
paint, sky light maintenance, masonry, etc.). If the project
is financed, the bank may require an escrow payment each
month for taxes and insurance as part of the regular loan
payment. This escrow payment is put in an escrow account
and accumulates so there will be adequate funds available
when the taxes and insurance are due.

After your initial project budget

is complete, you will want to
create a working budget that
reflects actual bids from subs in
such a way that you can look at
how far over/under budget you
are on a particular line item. If
you are over budget, you will
have to decide whether you
should: 1) obtain additional
bids; 2) revise the project; or 3)
go back to your sub-contractors
for value engineering, to
reduce the amount of their
bid. For example, if you are
renovating an old building and
using Historic Tax Credits, you
may get a bid to manufacture all
new windows. If these come in
far over budget, you can choose
to divide up the work between
various subcontractors and do
some of the work yourself to
save money.

Equity
Banks will rarely finance 100% of the cost of a project. As
a general rule, banks finance 80% of a project. That means
the remaining 20% must come from funds outside the bank.
Even with gap financing and other programs available,
lenders will typically want some cash equity provided by
the borrower. Banks like to be at 80% of cost or appraisal
value whichever is less. Also, banks may require additional
equity in more risky projects.

Unless you plan to bankroll the project from start to finish,

you will need a construction loan. This is a short term
(usually 6 months to 1 year depending on the size of the
project), adjustable-rate loan (up to a maximum amount
determined by the estimated cost, future property value,
and/or appraisal) that is issued in disbursements or
progress draws on a predetermined basis (usually once
or twice a month). Construction loans are typically monthly
interest only payments on the outstanding balance during
the actual construction phase with permanent financing set

THREE

Construction Loan

21

up with monthly principal and interest payments once the

project is complete. Project payments from the construction
loan are typically done by the bank or a title company as
bills are received. When a check goes out for payment, a
lien waiver is sent to be signed and returned to the bank/title
company.

Financing
New condominium projects may be eligible for secondary
market (conventional) mortgage financing. Banks look at
each loan on a case-by-case basis to determine borrower
qualifications. Most banks will consider a one, three or
five-year balloon or Adjustable Rate Mortgage (ARM)
financing in lieu of secondary market eligible loans. Once
the condominium does become eligible, the full array of
ARMs and fixed rate loans (15, 20 or 30-year amortization)
becomes available.
For some residential projects, 30-, 20-, and 15-year fixed
rate loan programs are available as well as ARM programs
(1-, 3-and 5-year). Commercial properties are typically
written over a 15 to 20 year amortization with a balloon and
a rate fixed for 5 years. For more details on commercial
options, see Chapter 6 Bank Programs.

Financial Information
In addition to information on the project, your lender will
want personal financial information on each owner of the
project as each owner will typically be personally obligated
on the debt. Information needed will include a personal
financial statement (banks have these forms) and personal
tax returns for the past 3 years. A credit report is usually

THREE
22

run on each individual to help determine credit risk. If the

owner of the project is going to be an existing business, th
lender will want business returns and financial statements for
the past 3 years in addition to presonal financial information
for the business owners as noted above.

CHAPTER FOUR

The local Commercial Real

Estate Network is also a great
asset. Other
are real Site
Searching
forsources
the Perfect
estate listings online

SITE SEARCH & SELECTION

and publications or supplements

Site
Search
by specific firms. These can
There
is nothing magical
about your search. It can be as
be reinforced
or expanded
simple
as several
by watching
the afternoons
newspaperof driving or biking around
for tidbits
about Assuming
Springfield an interest in downtown
desired
districts.
businesses and
building
ownersis the office and membership
development,
a good
resource
that
might
produce
available
of Downtown Springfield Inc. (DSI). They sponsor
space.
numerous
events to provide networking opportunities,
such as the annual awards banquet, architectural tours
and assorted social activities. In the past three years, DSI
has co-sponsored or sponsored multiple informational
seminars and educational events. A second approach is
to create your own inventory of potential properties using
the DSI list, which is available from the DSI office or any
commercial realtor.

If you plan to operate a business within your building, you will

want to contact the Springfield Area Economic Development
Council (525-1173) and the City of Springfield Community
Development Department (789-2377). These bodies are
willing and able to assist new and expanding companies

FOUR

Networking should begin with community leaders such as

the aldermen and employees of the local Department of
Community Development, and arc out to your own sphere
(business associates, friends and neighbors interested
in the downtown) and beyond to owners and tenants in
your target areas. Do not forget realtors whose firms list
commercial properties: they will have a handle on the latest
confirmed and unconfirmed listings.

23

to locate vacant facilities or available land that meets

their needs. The SpringfieldAnother
Area Economic
important Development
reality check
Council maintains a database
of
available
commercial
sites.
is the brutally honest evaluations
The Regional Planning Commission
and the City
Council
of your professional
advisors.
A
developer,
architect
or appraiser
have prepared a comprehensive
Land
Use plan
that also
will
help you
evaluate
the viability
provides detailed information
about
vacant
or underutilized
of the building. A three inch
parcels for future development.

Site Selection

slope to a floor can be erased,

if you commit enough resources
to make repairs. While a vacant
building appears to be a real
Letsit may
assume
you
steal,
be located
h
a
v
e
n
a
r
r
o
w
ed
in an area requiring
environmental
your search cleanto two
up.
Your bargain
buildings.
Onemay
is a
become
a
budget
commercial structure
b
ster! Y
o u wfeet
ill
ofu10,000
square
also
want
to
show
that has been vacant
the budget to your
for 25 years; the basic
accountant and review
structure is sound
the plan with your
and
the advisor.
architectural
financial

style is stunning but

it is located in an area
that is in transition.
The other is half the
size and perfect for
2 residential units; it
was renovated some
years ago and has
a residential tenant
who has been in the
upper for 3 years.
This second building is located on a major arterial street
downtown.

FOUR
24

You have done some cursory research using available data

bases. You managed to find a previous owner of the first
building and the realtor who sold the second property to the
previous owners who restored the upper flat. Youre excited
by your finds and want to get moving before someone else
discovers these gems.
Nows the time to begin some serious evaluations. The first
step is to create rough budgets for each building. These
should include the project costs to help determine the size of
the mortgage and your own obligation. From that a traditional
real estate evaluation will provide your return on investment
and equity. Beyond the project budget you should also
create an operating budget that will include escrow funds for

major repairs, standard operating costs (insurance, utility,

taxes at the new property value) and reasonable revenue
based on comparable rents or sale prices in the area. There
are various people available through DSI to assist with all of
the above required steps. You will need to review carefully
the tax implications of this purchase. Your attorney should
review any current lease or contracts related to the building.
And check for problems with zoning restrictions. Other initial
legal concerns include: street address, parking issues,
and team legal status (sole proprietor, partnership, LLC
or incorporation). Considerations prior to closing are bank
and other closing fees, and utility bills. It is always a good
idea to request a copy of your sellers closing documents
prior to the closing itself. They may contain such nuggets
as final utility bills or other expenses that will provide vital
information to you.
A major portion of the downtown area is a Tax Increment
Financing (TIF) District, which provides for substantial
incentives for redevelopment as well as for certain types
of tenants looking in the downtown area. Other parts of
the city also have TIF districts designated and the benefits
of these districts can be substantial. Enterprise zones are
designated for several areas of the city also. These can
also be the areas of a TIF district. These zones provide
additional incentives.

Purchase

Resources
SPRINGFIELD PUBLIC LIBRARY- SANGAMON VALLEY
COLLECTION
These records contain the most comprehensive collection
of historic photographs of the historic downtown area and
other areas of the city.

FOUR

Unless you are an experienced developer, you will want

help from an attorney in negotiating the purchase price
and terms. The closing will involve the following parties:
buyer, seller, their respective attorneys, a loan officer from
the lending institution and a title company official. For your
part, closing costs may include environmental study, real
estate appraisal, bank fees, and tax escrow. On the other
hand, the seller may be responsible for tax escrow, final
utility bills, rent reimbursement (covering tenants advance
payments beyond the date of the sale).

25

STATE JOURNAL REGISTER

The archives of the State Journal Register and their
microfilm department contain substantial information about
properties in Springfield.
ILES HOUSE FOUNDATION
This is a museum of Springfield history that contains
significant data about Springfields past.
HISTORIC SITES COMMISSION
As part of the City Department of Economic Development
this commission also maintains a collection of historic
information on the development of Springfield.
ILLINOIS HISTORIC PRESERVATION AGENCY
The archives of this agency contain data regarding the
Historic American Building Surveys as well as data on the
Historic American engineering Records for properties in
the city.
OTHER SOURCES
There are several other sources available which can add
information to a search for property history. These include
city directories, title searches for property ownership,
census records for information on previous records, tax
records and other public records related to the ownership
and development of property.

FOUR
26

CHAPTER FIVE
Play the Game

CODES & REGULATIONS

The Difference Between Commercial and Residential

or Mixed Use Expectations
There are different requirements that apply to residential
and commercial space. Two specific areas include fire
codes egress and sprinkler requirements. Buildings that
are single-family or two-family residential have fewer
code requirements than do commercial properties. When
residential and commercial uses are located in one building,
however, the residential generally rises to the level of
the commercial space. If you plan to use the building for
something other than the prior standard use (for example,
residential or mixed use in a formerly all-commercial
building), you will want to check on the impact of that
alteration. Dont make assumptions about which codes
apply; check with the experts at City Hall! Stay in contact
with the Plans Examiners in the Building Department and
they will guide you and your design team to work through
any problems.

Specific Regulations
Federal Employer Identification Number/FEIN (IRS)
The FEIN is required of all partnerships, limited liability
companies, C-corporations and S-corporations for taxpayer
identification. The state of Illinois accepts the FEIN issued
by the Internal Revenue Service for Illinois tax forms. If
you change from a sole proprietorship to a partnership or
corporation, you must request a new FEIN. To apply, use
form SS-4 Application for Employer Identification Number.
The form is available at the local IRS office or on the Internet
at www.irs.gov/forms. Send the completed form to the
specified IRS office. Sole proprietors can use their Social
Security number as their business taxpayer number.

Zoning Regulations

Springfield has zoning ordinances that regulate what type

of tenants (industrial, commercial, residential) can occupy
a building. The districts allow specific uses. If you need
to apply for a zoning change or permit for a special use,
allow at least three months time from the application due
date for the legal process through the Planning & Zoning

The historic Pasfield Building

was expanded with an addition
on a previously demolished infill
site. The new two-story building
compliments the three story
1880s structure. A new central
foyer connects historic and new
building areas on the first floor,
The brick and limestone facade
of the new addition matches
texture, detail and scale of the

Pasfield Building. The previously

enclosed and modernized
Pasfield storefront was replaced
with a more historically accurate
faade, including a replica of the
original small metal cornice at
the second floor level.
The project owner and the A/E
team worked closely with the
City from the start of the project.
This was the first new office
building in the central Historic
District in many years. Some of
the issues that had to be resolved
included a careful review of the
connections between historic
and new buildings.

FIVE

(City of Springfield, Department of Building & Zoning, 7892171, Third Floor, Municipal Center West)

CASE STUDY

27

Commission, City Council committee and final vote by the

Springfield City Council.
The new connections and the
HVAC, fire safety, and elevator
systems had to be reviewed and
approved by the city.
Lessons Learned:
Some problems arose that
should be remembered when
working with new and historic
construction combinations:
The historic building posed
technical and spatial problems
for all new building systems,
particularly HVAC clearances
and electrical and safety systems
interconnections.
Drainage issues around the new
building and its connections to
the 1884 structure required that
the owner work closely with the
City to re contour the parking
and public alley, an unexpected
expense.
The new faade extended
over the public right-of-way, a
consequence of the placement of
earlier facade renovations. The
City had to provide a variance
which they did and the results
are not noticeable.

FIVE
28

Building Permits
(City Building Department, City of Springfield, Department
of Building & Zoning
789-2171 Third Floor Municipal
Center West) During the time required for a zoning change,
you will want to contact the City to begin the review
process for a building permit, if required for your project.
To obtain a permit you will most likely need construction
documents (final plans and specifications) prepared by an
Illinois licensed design professional (structural engineer,
professional engineer or architect). These will be required
on remodeling that involves life-safety issues or revisions
to the basic structure and on ALL new construction,
including additions.
A building permit is required for one- and two-family
dwellings and accessory structures of over 120 square feet.
This permit must be obtained before beginning construction,
alterations or repairs, other than ordinary repairs that are
nonstructural and do not involve replacement of mechanical,
plumbing or electrical systems. Construction documents
prepared by a professional are not required. However, a
site plan (drawn to scale) is required.
For commercial, industrial and multi-family construction,
a permit must be obtained before beginning any of the
following:

Demolition of any building elements

Construction/alteration to a structure of over 120 square

feet

Construction of an addition
Demolition or moving of a structure
Change of occupancy classification
Installation/alteration of any equipment that is regulated
by the codes.
Construction documents, prepared, sealed, signed and
dated (current date and date of license expiration) by a
design professional licensed in Illinois are required.
Plans are reviewed by the City Building Department, the
Zoning Section, the Fire Safety Division and the Public
Works Department. Allow a minimum of three weeks for
all plan reviews. If the plans are in compliance with city
codes and ordinances, a building permit will be issued and

work may begin. However, if the construction document

submittals indicate code or ordinance violations, review
comments are sent back to the design professional, who
must respond satisfactorily to all concerns before a permit is
issued. Permits for mechanical, plumbing, fire suppression
and electrical work are issued separately to only licensed/
registered contractors following issuance of a building
permit.
Requesting Building Department
periodic inspections during
construction is the next step
toward obtaining a Certificate
of Occupancy. Work must be
approved by electrical, plumbing,
mechanical and structural
building inspectors. After all
final inspection approvals, a
Certificate of Occupancy can
be issued and the business is
permitted to open. If there are minor problems with the work,
the Building Department may issue a temporary Certificate
of Occupancy (usually 30 days) and the problems must be
corrected within that time.
Part I Environmental (Environmental Protection Agency)

Fire and Safety Regulations

Fire and safety regulations change according to the
intended use. Therefore each building is considered on an

The existing stairs are

not compliant with current
regulations. A new enclosed fire
stair was included in the project
above after discussions with
the City to provide a fire-safe
primary exit.
There were significant shoring
and installation challenges with
cutting large openings in antique
brick walls (at the connection).
The old masonry and mortar
needed to be carefully supported
during demolition and installation
of new supporting structure.
The City required the process to
be engineered, and as a result, it
went smoothly.
T. David Parker, AIA MML LTD.
Architects and Planners.

FIVE

After a historical review of your building (see Chapter 4), you

may determine that further research is required because of
potentially dangerous uses housed in the building at some
time in the past. Perhaps an oil tank was in the basement or
a gasoline tank was buried in the back of the building. City
Fire Department records may help in your search, although
they should not be considered as the only source. You may
want to contact the Fire Department at 789-2170. If a title
search shows a history of potentially dangerous building
uses, a bank will require that a Phase I Environmental Audit
be satisfactorily completed before executing a loan. If doubt
exists with the Phase I, the lender may require a Phase II
Environmental Audit to be satisfactorily completed. Further
environmental assistance for businesses is available
through the Illinois Environmental Protection Agency Help
Line at (888) 372-1996.

Most turn-of-the-century
buildings do not meet the current
structural requirements for floor
loads especially on the upper
stories. Careful planning is
required to limit heavy loads
(such as file rooms) and to
provide the additional support
required to meet new office
loading requirements.

29

The Fisher/Latham Buildings

North 6th Street
Owner: Oxmore LP
Architects: Melotte Morse
Leonatti, Ltd.
The project Owners and
Design Team had a very good
rapport with the City from the
beginning to the end. The Citys
Code Department, Office of
Economic Development and
Code Inspectors were all part
of the process of restoring these
very deteriorated Lincoln-era
buildings to usability.
The financial planning with the
City was very important in all
stages of the work to make sure
that Historic Tax Credits were
verified and sold, to provide
the documentation needed
for the Citys financial support
programs.

FIVE
30

individual basis. Generally, checking for appropriate zoning

will be the first step in a rehab. Next check with the Building
CASEforSTUDY
Department to identify requirements
the specific use
(including Illinois Accessibility Code) and if services of a
design professional will be required. Upon determination of
zoning and building requirements, the Fire Department will
then be able to better identify specific fire and life safety code
needs. This process involves a review of the proposals of
the design professional. Adjustments will be recommended
and an official review of needs issued during the building
permit plan review process. The best friend of newcomers
to real estate development is an experienced architect
who can help navigate complex issues and government
regulations, explaining design and budget implications to
the clients along the way!

CHAPTER SIX

FUNDING PROGRAMS

Government and Bank Funding Programs

City of Springfield Assistance
Tax Increment Financing is an economic tool that was
created by state lawmakers in 1977. TIF was created
for local governments to help revitalize blighted areas of
municipalities and is administered by the City of Springfield
Office of Planning and Economic Development.
Municipalities are able to make needed improvements such
as new roads and sewers, and provide incentives to attract
new businesses and retain existing businesses, without
tapping into general funds or raising taxes.
If a potential redevelopment project is located within a TIF,
it may be eligible for TIF assistance.
TIF eligible expenses are typically one or more of the
following categories: property acquisition, demolition and
site preparation, rehabilitation or renovation of existing
public or private buildings, construction of public works
improvements, job training, relocation, financing costs,
studies, surveys, plans, marketing, professional services
such as architectural, legal and engineering.
Springfield has eight TIF districts. If you have a project and
think you may be located within a TIF, please contact the
Springfield Office of Planning and Economic Development
(789-2400) prior to commencing work on your project.

Central Area TIF Rehabilitation and Business

Program Summaries
Building Rehabilitation Program:

SIX

This program was designed to encourage property owners to

restore and rehabilitate properties located within the Central
Area TIF District. The City will review three conditions
to confirm the applicants need for assistance. These
conditions include a financing gap (or lack of available
funds), return on investment and location gap (comparison
of cost factors due to location). The City will participate in the

31

project up to a maximum of 20% of the total rehabilitation

cost. Depending on the need and location (high priority
area- Phase II), the Citys participation can be in the form of
a loan, grant or a combination of both. The City will usually
subordinate its lien position to the primary lender. Building
rehabilitation loans can be amortized up to 10 years and
can have a negotiable interest rate between 0% and 5%
(at the discretion of OPED). But all loans must be paid in full
by December 1, 2016 (by the expiration of the Central Area
TIF District). Owners/contractors must adhere to applicable
prevailing wage requirements and must agree and disclose
this requirement on all construction-related contracts.

Downtown Residential Assistance Program:

This program was designed to assist property owners
who propose to develop upper floor residential living
units within the Central Area TIF. This program has three
components:
(1) Residential Assistance
(2) Architectural Assistance
(3) Residential Rebate
Residential Assistance:

SIX
32

The City will participate in the project up to a maximum

of 50% of all reasonable residential-related rehabilitation
cost. Depending on the need, the Citys participation can
be in the form of a loan, grant or a combination of both. The
City will usually subordinate its lien position to the primary
lender. Building rehabilitation loans can be amortized up to
10 years and can have an interest rate between 0% and 5%
(at the discretion of OPED) but all loans must be paid in full
by December 1, 2016. Owners/contractors must adhere to
strict prevailing wage requirements and must disclose this
fact on all construction-related contracts.
Architectural (Feasibility Study) Assistance Program

This program is part of the Downtown Residential

Assistance Program and was designed to assist property
owners in determining the feasibility of residential or rental
development of upper-story building projects located within
the Central Area TIF District. A maximum grant of $2,000,
per building, is provided for architectural expenses related
to the residential feasibility study.
Residential Rebate:
A one-time per unit rental rebate equal to six months rent, or
$3,000, will be made payable to the developer once a one
(1) year lease is executed by a tenant and after the tenant
has occupied the unit for at least one month.
Downtown Facade (purchase) Programs:
This program is designed to assist property owners that
have buildings located within the Central Area TIF. Only
certain expenses are considered eligible in the restoration
of facades. This program was revised in 2004 and now has
three additional options for qualified properties:

Option 1: Historic Restoration Program

Option 2: Facade Redevelopment Program
Option 3: Tall Building Facade Program
Option 4: Existing Facade Purchase Program
With all options, the City purchases a facade easement
in exchange for city assistance. The assistance amount
depends on which restoration option the property owner
chooses.

With the historic facade restoration (Option 1), there

is also a $2,000 grant for historical facade-related
architectural expenses.

SIX

Option 1: (Historic Restoration)

The purchase amount is based on 75% of all TIF
eligible facade-related costs, or $75,000 (per streetfacing facade), whichever is less.

33

To be eligible for a historic renovation, the property

must be one of the following:
a) Located within the downtown National Register
Historic District
b) Listed on the Potentially Eligible for
Landmarking List (a.k.a. the Demolition Delay
List)
c) Receive local landmark designation by the
Springfield City Council
Option 2: (Facade Redevelopment)
The purchase amount is based on 75% of all TIF
eligible facade-related costs, or $40,000 (per streetfacing faade), whichever is less.
Option 3: (Tall Building Facades)
The owner will choose whether to restore the
building facade historically (Option 1) or a simple
redevelopment (Option 2). The total purchase price
for the Tall Building Facade Program will be based
on two factors: 1) The first five floors of the building
will be calculated according to whichever Option
the owner chooses, and 2) The upper floors will be
calculated at $8,000 per floor above the fifth floor.
Option 4: (Existing Facade Purchase)
The purchase amount will be based on the number
of stories, for a maximum purchase price not to
exceed $25,000 (approximately $8,335 per floor for
a three-story building). Facade purchases are only
available on properties that are in good/very good
condition*. Assistance is at the discretion of the Office
of Planning and Economic Development.

SIX
34

With Option 4, assistance IS NOT AVAILABLE for any

facades that are in poor condition, or need any repair
or maintenance. Determining the condition of the
facade is the sole discretion of the Office of Planning
and Economic Development.
Downtown Accessibility (elevator) Assistance
Program:
This program is designed to assist property owners in making
the upper floors of downtown buildings more accessible to

persons with disabilities. This program allows property

owners to a) install ADA (Americans with Disabilities Act)
compliant elevators in buildings that do not have ADA
elevators; or b) rehabilitate older, non-compliant elevators
and make them ADA compliant. The program only allows
for one elevator per building and the elevator must service
all floors (excluding the basement) in that building. A grant
is available for up to 50% of all elevator-related project costs
or $50,000, whichever is less. If the building is serviced
by at least one ADA compliant elevator, then a property is
not eligible for this program. However, a rehabilitation loan
may qualify.
Lease Payment Assistance Program:
This program is designed to encourage new retail
businesses and restaurants to start-up within the Central
Area TIF district*. Small to medium sized retail businesses
(excluding service businesses and businesses where
alcoholic beverages account for 50% or more of their
sales**) are eligible for this program, but must submit a
completed application after signing a multi-year lease, or
within 90 days from the first day of opening. The program
will reimburse business owners 50% of their first 12 months
lease payments, up to a maximum amount of $10,000,
after the business has been in operation for one year. The
Office of Planning and Economic Development reserves
the right to lower the inducement amount if the lease
amount is considered unreasonable and to reject any and
all applications. Reimbursement is made one year from
the date on the signed agreement and: 1) after a new one
or multi-year lease is signed confirming the business will
remain open in the Downtown TIF area, 2) after verification
from the Department of Revenue that sales taxes are
current, and 3) after verification from the landlord that all
lease payments are current.
*To be eligible, business owners cannot be related in any
way to the property owner

*** Restaurants may serve alcoholic beverages but food

sales must be the majority of sales and food service
must be available during all business hours. The Office

SIX

** Businesses closing shop and relocating to a TIF are

not eligible for this program, unless special circumstances
are involved. The Office of Planning and Economic
Development has the right to determine what constitutes
special circumstances.

35

of Planning and Economic Development reserves the

right to determine if a business qualifies as a restaurant,
service business, or bar and has the right to reject any
and all applications.

Targeted Activities Assistance Program:

This program was established to (1), encourage targeted
businesses conducting their activities outside of Springfield
to open a subsidiary location within the Central Area
TIF District and (2), to assist targeted businesses that
would offer services and amenities that would encourage
additional residential growth to the Central Area TIF District,
that otherwise would not be eligible for any other assistance
programs. Some examples of targeted businesses would
be grocery stores, dry cleaners, pharmacies and video
stores.
TIF assistance is in the form of lease payment assistance.
The amount of assistance will be based upon the need and
the nature of the business, the anticipated positive impact
that results and the maximum amount will not exceed
$15,000 per business. Current businesses operating within
the city limits of Springfield are not eligible. Property owners
are not eligible to lease space from themselves, relatives
or related business entities. Applicants are required to sign
a long-term lease at their desired location.

DISCLAIMERS: THE FOLLOWING ARE ONLY SUMMARIES

AND MAY NOT INCLUDE ALL THE NECESSARY PROGRAM
REQUIREMENTS. PLEASE CALL THE OFFICE OF PLANNING AND
ECONOMIC DEVELOPMENT FOR A PROGRAM BROCHURE AND
APPLICATION.

SIX
36

THE CITY OF SPRINGFIELD CENTRAL AREA TAX INCREMENT

FINANCING PROGRAMS ARE SUBJECT TO AVAILABLE
FUNDS AND PROGRAMS MAY BE SUSPENDED AT ANY TIME.
THIS SUMMARY IS ONLY INTENDED FOR INFORMATIONAL
PURPOSES AND THESE PROGRAMS MAY HAVE ADDITIONAL
REQUIREMENTS FOR APPLICANTS TO BE ELIGIBLE FOR A
SPECIFIC PROGRAM.

Contact:
Bissi DiCenso

TIF Administrator
800 E. Monroe, Room 107
Springfield, IL 62701
217/ 789-2377 /Ext. 469
Enterprise Zone
The Springfield Enterprise Zone was established to
encourage job creation and capital investment in areas
of economic distress and to promote neighborhood
revitalization in targeted areas.
The Enterprise Zone Sales Tax Exemption on building
materials allows materials to be purchased within the State
of Illinois free of city and state sales tax. The Enterprise
Zone Property Tax Abatement is eligible to qualifying
projects that make improvements to the property that result
in an increased assessed value over $30,000. The citys
portion of the property taxes may be abated on a sliding
scale. (Properties also located in a TIF district are exempt
from the Property Tax Abatement benefit.) Other attractive
incentives to building or rehab within an Enterprise Zone
include State Tax Incentives such as Investment Tax
Credits and Utility Tax Exemptions. For more information,
call the Springfield Office of Planning and Economic
Development at 789-7377.
State Programs
Opportunity Illinois
(State Treasurers Office, (312) 814-8953)
This program provides the borrower with a below-market
rate of interest during the first 5 years of the loan which
reduces debt service costs. The Treasurers office deposits
funds equal to the loan amount into the borrowers bank
and gets a determined rate of interest for its investment.
In turn, the bank loans this money out to the borrower at a
rate that is typically 3% over the rate paid to the Treasurers
Office.

SIX

Historic Preservation: Preserving and protecting

landmarks of historic significance (examples:
architecturally significant buildings, historic sites,
museums, train depots). These projects must be
designated as a historic landmark or located within a
designated historic district and must follow the Secretary
of Interiors Standards for Rehabilitation. Funding level:
Up to $10 million.

37

Non profit Development: Loans to expand or improve

the operations for the public good. Faith based
organizations are eligible as well.

Illinois Department of Commerce and Economic

Opportunity (DCEO)
The States Participation Loan Program can participate
in up to 25% of the total project, not less than $10,000 or
more than $750,000. DCEOs rate and maturity will typically
match the bank. The purpose of the program is to provide
assistance to small businesses that provide employment
opportunities. Funds can be used for the purchase of
land and buildings, construction or renovation. There is
a Minority, Women and Disabled Participation Loan
Program, a Development Corporation Participation Loan
Program and an Enterprise Zone Financing Program. For
more information, contact Jack Weatherford at 782-3891.

Federal Programs
Small Business Administration 504 Loans
The SBA 504 Loan Program provides long-term subordinated,
fixed-rate financing for major fixed assets having at least
ten years of useful life. The program is used for owner
occupied properties. Investment properties are typically
not eligible. These loans are to be used by eligible small
businesses to fund up to 40% of the cost of the land and
buildings, machinery and equipment, and renovation
expenses. Business owner must invest at least 10% equity
into the project (a startup or a single purpose building
requires additional equity) and a bank funds the remaining
50% of the project. Terms are 20 years for buildings. The
statewide CDC for SBA 504 loans is the Small Business
Growth Corporation. They are located in Springfield and
can be reached at 787-7557.

SIX
38

Small Business 7a Loan Program

This SBA loan program can also be used to finance owner
occupied real estate projects. With this program, the federal
government provides a partial loan guarantee to the bank
making the loan. There is a local SBA office in Springfield.
They can be reached at 793-5020.
Historic Rehabilitation Tax Credits

(National Register website: http://www.nps.gov/hisotry/hps/tps/tax/

index.htm)

These federal funds are

administered by individual
states and are available
for any building that
qualifies as a Certified
Historic Structure (listed
on the National Register
or located in a Historic
District and significant to
that district).
In the 1970s the National
Park Service developed
professional Standards
for Rehabilitation;
federal tax incentives
were added to stimulate
private investments in
rehabilitation of historic
structures.
The City of Springfield has designated many properties as
either landmarks or as part of a historic district.
For more information, contact Mike Jackson, F.A.I.A.,
Preservation Architect, Illinois Historic Preservation Agency:
www.Illlinois-history.gov or (217)785-5031

Bank Programs
Programs vary from lender to lender. Some banks have
expertise in specific areas like construction financing and
government financing. To effectively comparison shop for
current offerings and rates, you will want to consult with at
least three area lenders:

2.Construction Lines of Credit with End Loan Permanent

Financing
3.Working Capital Lines of Credit

SIX

1.Commercial Real Estate Loans (fixed or floating rate)

for the acquisition of property, typically amortized for
15-20 years

39

4.SBA Financing
a. 7(a) Program
b. 504 Programs
5.Personal Mortgage Lending (see Chapter 3 under
Financing for details)

SIX
40

CHAPTER SEVEN

TIMELINES

Project Timeline and Construction Phase

Prior to beginning construction work, many projects
require a construction loan to cover expenses until the
work is complete. Typically, only the interest is paid to
the bank during this period. The principal is rolled into a
mortgage when the project is finished. Interest costs can be
substantial and vary based on the amount borrowed, agreed
percentage and the length of time the construction loan is
held. Therefore, it is crucial to complete construction in a
timely manner. Proper planning is critical to the success of
the project and will result in the earliest possible cash flow
from renters or buyers.

The First Steps (Pre-Construction Phase)

The Basics:

Determine the parties (individual ownership, partnership,

company or corporation) in the project.
Select a building. Research Historic Tax Credits and City
funding potential.

The Team:

SEVEN

- Make a decision about your role: owner, developer and/or

general contractor.
- Make a list of professionals you need to hire: architect,
attorney, accountant, general contractor.
- Research the names of experts, local or out of town.
- Engage the appropriate professionals.
-Begin preliminary discussions with financing sources.
Research:
- Research your building and applicable codes and
regulations. Explore prospective government funding
sources.
- Empower the architect to open discussions with City officials
about codes, regulations and construction challenges.
- Gather pricing information for as many items as you can
(windows, elevators, plumbing fixtures, etc.) and get bids
if possible.
- Obtain Business Owners Liability insurance (umbrella
policy may be required by lender to provide excess liability
coverage), title insurance, Builders Risk and Liability

41

insurance, contractors liability insurance and flood

insurance.

Project Planning:

- Establish a working budget after a review with your

architect and/or general contractor.
- Prepare a project timeline (pre-construction)
- Research designs, plans, details, materials and finishes
you would like to use. Visit showrooms, magazines or the
Internet.
- If there are no tenants: create marketing plan to attract
and secure leases from prospects. Letters of intent or actual
leases may be requested by funding source. A marketing
plan is the absolute minimum.
- If current tenants: plan for alternate living arrangements
and business interruption for your residential or commercial
tenants. You can reduce this down time through careful
planning to allow on-going work in other parts of the building
as long as possible. When doing demolition in a building
with tenants, clean up every workday, keeping in mind how
you like to live and work.

Historic Tax Credits:

- Apply for historic designation for your building, if applicable,

and get approval of Historic Tax Credits.
Architectural Prep:
- Work with the architect to develop initial plans and
sketches.
- Approve final drawings from the architect.
- Obtain written bids based on final drawing and make
appropriate adjustments to the working budget.

Construction Prep:

Loans:

SIX

SEVEN
42

- Complete any demolition work needing to be done.

- Contract with sub-contractors. (A payment schedule
will be outlined in the contract and usually based on the
percentage of the work completed. Have your architect
approve payments before you issue them. Retain enough
money at every stage so that you can finish the job with
another company if necessary.)
- Apply for permits.

- Secure private loans and City or other funding

commitments.

- Begin shopping for lenders for construction loans, final

mortgage or balloon note, and if pertinent, Historic Tax
Credit. Lenders will need the following:
-Set of plans
-Complete itemized cost breakdown
-Description of materials or specifications
-Copy of contract to purchase
-Projected income and expenses once the project is
complete. This is critical as it provides the primary
repayment source for the loan.
-Financial statements and tax returns on all borrowers
(business and individual)

Make a Plan and Work It

Construction Phase Tasks:

Complete initial interior demolition

Repair/replace masonry
Install structural supports
Place HVAC condensers on the roof

SEVEN

If approved, the lender will order the appraisal and

determine if an environmental study needs to be done on
the property. It is a good idea to get the lender involved as
early as possible once preliminary plans have been made.
Theres no sense in doing a lot of work and spending a lot
of money on a project if financing cannot be obtained.
.
Once preliminaries are completed (funding in place, final
drawings complete and subs engaged), and construction
is underway, speed is of the essence. If you have been
fortunate to complete demolition concurrent with the
preconstruction phase, you may have saved many weeks
of work. The goal is to complete the construction phase
as quickly as possible. Whenever you begin construction,
you can be assured that there will be surprises - even after
demolition is complete. The hope is that the surprises do not
produce lengthy delays or budgetbusting expenses. That is
why most budgets include an allowance for change orders
(5-20% of the total cost of the project). Your project can also
be delayed by sub-contractor scheduling conflicts. This is
especially true if you are a onetime developer: subs have
little incentive to meet your timetable, as there will be no
repeat business. Any lengthy delays increase the budget,
too, because your carrying costs on the construction will
increase with each passing day.

43

Repair/replace/install elevator
Repair/rebuild/install stairways
Repair/replace roof
(OPTIONAL) Install rooftop deck
Begin repair/replacement of windows
Repair/replace storefront and entrances
Sandblast interior brick and wood
Install mechanicals
Complete major interior demolition (stairways, garage,
entrances)
Build/rebuild garage
Repair existing or install new stairways
Complete window repair
Build interior walls
Stub in plumbing
Stub in HVAC
Hang and tape drywall
Install sprinkler system
Paint interior surfaces
Install electrical hook-ups
Activate HVAC
Test and activate sprinklers
Install hardwood floors
Restore elevator car
Install cabinets and countertops
Install plumbing fixtures
Install carpet
Install kitchen appliances
Install public area flooring
Create a Punch List (unfinished items)

SEVEN
44

A word of advice about the punch list: when work is

complete, walk through the project with your architect
and make a list of outstanding items that have not been
completed as agreed in the terms of your contracts. Do not
issue final payments to your general contractor (or if you
are the general contractor, to the various subs) until their
work is complete.

Budget:

- Keep your construction cost contingency allowance at 20%

or more. There are almost always overruns in construction
projects.
- Be sure to determine the value of subsidies before you
begin your project. Some can play havoc with your budget
projections because of specific requirements.

- Prepare carefully for the timing of the receipt of funds. It

will impact directly on carrying costs for your construction
loan.
- Research and set rents that are consistent with the market.
Whatever your construction costs, you cannot charge an
amount above the ceiling in the community.

General Contractor:

- Your contractor should be experienced in the type of

project being done.

- Contact references, sub-contractors, architects and

previous customers.
We would add this caveat: do not consider acting as your
own contractor unless you have a working knowledge of the
construction trades and construction management. Even
with that experience, it is probably advisable to have the
back-up of a reliable, experienced general contractor for
those tough problems (see Caveat emptor below).

- Again they must be experienced.

- They must also have local market knowledge.

City Building Department Meetings:

- Be sure to attend and take your architect and engineer.

- Make your own list of potential trouble spots. Start by
talking with your architect, then research and cost out
possible solutions.

SEVEN

Mechanical, Electrical, Plumbing Engineer:

45

Amenities Appropriate To The Market:

- For any overruns you should evaluate how much more

rent/sale price you need to meet your investment goals.
Again, explore the market rental rates for comparable
properties

Beware Pre-Leasing Euphoria:

Dont put much faith in the early interested prospects.

It will take time and money to lease all your units.

Caveat Emptor:

(Buyer Beware): Scheduling of Sub-Contractors

This is an art that experienced general contractors have
mastered. If you are acting as your own contractor,
remember that your subs have no special motivation to meet
your timeline expectations because they may not expect
to do business with you again. Anyone in the construction
trades will tell you that timelines are really goals. Something
happens, and there are delays. The schedule looks great; the
reality is a different matter! Faced with the choice between
a one-time general contractor and a repeat customer, its
easy to see why subs opt to service their long-standing
customers first. You may want to consider hiring a general
contractor or at least consult your architect who can do
your scheduling for you.

Record Keeping and Computer Software Support:

Every project requires good record keeping. Microsoft has

a software package called Microsoft Project that might
be helpful in the construction process. The manual that
accompanies this software states:

SEVEN
46

Effective project management is vital at the start of a

project when youre determining what needs to be done,
when, by whom and for how much money. Effective project
management is also essential after you kick off the project,
when you are continually controlling and managing the
project details. You frequently analyze the project tracking
the schedule, the budget, resource requirements and the
scope of tasks. In addition, youre managing the level of
quality in the project, planning for risks and contingencies
and communicating with the members of the project team
as well as upper management or customers.
Well said. Effective management is indeed the key to a
successful project.

CHAPTER EIGHT

MARKETING & PR

Celebrate!
You have been talking about this project for weeks, maybe
months. All your friends and family have heard some of the
war stories more than once. Why do you need to market
the project? And how do you do it, lacking a big budget or
any prior experience?

Photo album or brag book Just like Grandma, you

can carry around a portable history of your project or current

EIGHT

When you approach a bank for a loan, apply for Historic Tax
Credits, or make an appeal for City funds, you are marketing
the project. When you meet with an existing commercial
tenant to discuss your plans and the impact on their existing
business, you are also marketing your project. When you hire
professionals to assist with the work, you are promoting your
plans. When you advertise in the newspaper for tenants,
you are selling your location. While each approach includes
different information and requires a distinct approach, they
all share elements such as details of your plans, goals and
an invitation and attempt to persuade others to join your
project. One key to success in telling your story is to know
the entire history of the building (see Chapter 4). Knowing
the previous owners and tenants may help dispel (or could
amplify) environmental concerns. If you are applying for
Historic Tax Credits, the more you know about the role of
your building in the history of the community, the better your
case. A human-interest or historical approach will propel
local media attention. Once your research is complete,
there are several tools you may want to create to tell your
story and convince others to help:

47

EIGHT
48

status report. There are small brag books for purchase on

line that use your own digital photos and captions. They
may cost as little as $10 to produce and make a BIG impact!
Photos can begin with the interior/exterior before pictures
and conclude with the Grand Opening or the finished
product.
History book This could include your marketing
plan, copies of your presentations, construction quotes,
research documentation, financials, curriculum vitae of
owners, funding applications, funding presentations, time
logs, layouts, project timeline, meeting notes, selected
photos, professional contracts, correspondence and
notes, marketing samples, purchase offer, partnership or
incorporation papers, leases, tax ID, insurance contracts,
rental applications and forms.
Storyboards or window displays One way to let the
public know changes are coming is to create a large and
attractive window display mixing photos, memorabilia and
exterior sketches or floor plans. If you are computer savvy,
you may be able to create your own storyboards, scanning
old photos and documents and placing an Excel file for
conversion to a .pdf that can be provided to a local company
that produces the finished display.
PowerPoint presentations This staple of the business
sales call is also useful in making a pitch for funding. You
can tailor the story to each audience, dropping or adding
standard slides accordingly. You can also insert photos
and sketches to help flesh out your plans or illustrate a
point. Standard slides could include: building history, team
leadership (owners), project goals and budget, financials
(including operating cash flow, funding affect on budget,
standard real estate analysis), and marketing plans.
If you are working with the City of Springfield, Sangamon
County, State of Illinois or U.S. government funding sources,
it behooves you to spend some quality time thinking about
what they can get from working with you. Then include that
information in your presentation for assistance. Be lavish
in your praise! Everyone likes a public pat on the back.
There are many ways to announce your project. Here are
a few:
Paid print ad Are you looking for tenants? If they are
residential renters, you will want to include this in your mix.
Include this cost in your budget, and since you pay by the
word keep the description brief but enticing.
Perhaps we could try a DSI version? A mini-Upper Story
Tour?

The DSI office can spread the word to others interested

in downtown development. The organization produces a
newsletter several times a year, and also sends a weekly
amalgam of news, member announcements and ads,
activities listings and other items of interest to downtown
boosters. Your project will definitely qualify.

EIGHT

Open House You may wish to host your own open

house for the public. Again, this can be done in conjunction
with the DSI architectural tours or events that are held in
the spring and fall that generally include open houses at
buildings of architectural or historic interest. Or you can
produce your own open house.
(Mayors Media Conference If you are working with
City officials and receiving government assistance, you
may well be considered for inclusion in the weekly media
conference. No matter who presides over the City Council,
they are always ready to applaud new and exciting projects
downtown! At times, when there is a dearth of good
news, you may be approached before you ever decide
how to broach the subject with someone at City Hall.)
Possibility?
Media Release If you have never written one, talk to
someone experienced in this art. It is not black magic, but
here are several suggestions to help you create a winning
release. Limit your release to one page with the copy
double-spaced in a font no less than 10 points. You may
want to come up with a catchy title and grab the attention of
your readers who are media pros and not easy to impress.
Make sure you have included within the first paragraph
or two the precise who-what-why-where-when of your
activity. If your announcement is more in the vein of news
than specific celebration or event, you may want to call the
print media news desk (or Business reporter) and the news
director of television and radio stations. DSI can help you
identify people in the media industry in Springfield who
would be willing to volunteer their time to help you write,
prepare and distribute your materials.
Media Interviews Do you have the ear of a radio
personality, newspaper editorial writer or TV reporter? Let
them know what you are doing, and invite them in! Human
interest and news stories blend in a downtown development
project. And everyone is always looking for a fresh angle
on the downtown story or to be the first news team on the
scene.
DSI has (will have) a copy of Making News in Mr.Lincolns
Hometown that provides addition tips and contacts for

49

various print and broadcast media in and around the city.

You can make photocopies
Letter to the Editor Write to the local newspapers or
call one or more of the local network TV stations. Most invite
reader-inspired stories. And good news from downtown is
always welcome. When contacting a television station,
make sure you have some bullet points ready that explain
what youve done, and why its unique.
Formal announcement If you are associated with a real
estate developer or realtor, they may well want to produce
an announcement for their regular mailing list. Perhaps you
have a mailing list of your own.
Chamber of Commerce Are you a member of the
Greater Springfield Chamber of Commerce? The Chamber
publishes a newsletter, offers a variety of services for small
and large businesses, and routinely makes announcements
relating to local business expansion.
Springfield Convention and Visitors Bureau - Here
is another public avenue for partnership. If your project
includes recreational space indoors or out particularly
if your venue provides an activity to attract visitors to
Springfield you might be in a position to interest the SCVB
in a public announcement..
TV Network or Cable Shows From national cable
television programs to your own local television stations,
this medium could get your property anything from a few
minutes on the evening news, to a whole program on your
local PBS station. Your best bet is to email a television
producer with your press release and some photos; then
follow up with a phone call a few days later. If your property
is extra unique, you might contact the producers of programs
on HGTV, DIY or TLC. Keep in mind the national programs
get hundreds of queries and proposals, so your chances
on the national level are relatively small.

EIGHT
50

CHAPTER NINE

ADMONITIONS & OPPORTUNITIES

Building On Our History

In evaluating the redevelopment and the new development

in Springfield that has occurred over the past several years
there are two major reasons for this activity. The first is a
result of the rich history that exists because of the time spent
here by Abraham Lincoln and the existence of the state
capitol. These facts have caused a strong desire to preserve
this history through the restoration and redevelopment of
many of the buildings of the Lincoln era. This is very evident
in the downtown area and several historic areas adjacent
to downtown. This redevelopment was not necessarily
for profit purposes, but for pride and preservation of
Springfields historic past. The second major reason is due
to the strong and stable economic environment of the area.
Springfield consists of an economy that is very resistant to
major swings. As a result, business owners and investors
alike can become a part of the Springfield market with the
expectation that their investment will have a high degree
of a chance for success.

Curtis Tillet

Commercial Broker
Coldwell Banker Devonshire

Key to a successful building rehabilitation project

includes up-front planning and construction cost
estimating to evaluate the functional, aesthetic and
financial merit of the potential project.

Bruce Ferry

AIA, Architect and Developer

NINE

It does not take many conversations with the early pioneers

of urban redevelopment in Springfield to conclude that there
are plenty of lessons to be learned on all sides. But among
the most pressing concerns was the need for improved and
streamlined partnerships with both the city and local lending
institutions. Those of us working in downtown development
now owe a hearty thanks to our predecessors. They helped
make todays discussions with lenders much more fruitful.
Each project benefits from the success of the previous
one.

51

Political and market forces are at work today, and they

always have been in the past. The local economic
environment, long-depressed real estate values
downtown, and plentiful examples of successful urban loft
living models across the country have also had a positive
impact.
Several quotes from Springfield trailblazers are
instructive:
Our family decided to rehab the K-Mart building downtown
on the corner of 5th and Adams with a personal reward in
mind. My wife and I wanted to live downtown. We were
able to make the project cash flow, back before downtown
rehabilitations had taken off. This was due to help from
the city with a low interest loan, structuring the tenants to
be first floor retail, second floor office and the remaining
space residential leases. The first few years, while we lived
in one of the apartments, we went out to dinner downtown
somewhere different every night. We walked to one of four
restaurants and enjoyed it very much. I was so pleased
when I was back in Springfield for a Christmas visit this
year to see downtown bustling with many more choices for
dining and shopping!

Gene Gerber

Commercial Developer

A long tested strategy proven to result in downtown

revitalization across the country is to attract apartment
dwellers with disposable income to well-maintained
buildings. They provide the impetus for entrepreneurs to
establish restaurants, retail and offices which add hustle
and bustle to the streets, not to mention increased property
tax revenue to the City. In Springfield the City provides
financial incentives for rehabbing downtown through the
tax increment financing or TIF funds.

NINE
52

Carolyn Oxtoby

Commercial Developer
And From The Finance Viewpoint

In general, the local banks are receptive to developers

projects as long as there is some equity in the project and
there is demand for the project. Banks want to be paid
from cash flow generated by the project once it is done and

not from liquidation. Office and retail space seems to be

ample throughout the City. Additional residential space is
needed downtown as demand has grown in recent years.
Downtown parking continues to be an issue, although the
problem is more perceived than actual. There is plenty
of parking within walking distance to any downtown
location.

John Maxfield

Commercial Lender
Illinois National Bank

It is clear that we need a strong and evolving partnership

with the City to make this happen. It is not enough to
study and report endlessly on possibilities or undertake
individual projects in a planning vacuum. With the City
as a partner, we must develop a working relationship
established on trust, mutual respect and collaboration.
Prospective developers must come prepared with budgets,
professional support and do-able plans; city officials must
seek out appropriate partners and create working models
for partnership that include a cocktail of funding options
and cooperation in codes and building requirements.
With equity investment and willing hands, Springfield can
realize the dreams of the visionaries who love this city.

Victoria Clemons

Executive Director, DSI, Inc.

NINE

We meet with at least four people

a month that want to start a new
business in downtown Springfield.
Their energy and enthusiasm is
contagious and reaffirms that
Springfield is the place to do
business.

53

54

CHAPTER TEN

10

TOP TEN LESSONS

Enough Already!
Okay, okay we went on longer than we intended. Here
is a chapter for the speed-readers, those of you who read
only Cliff Notes and still aced the tests. These concepts
are so big weve even increased the font to accommodate
the ideas.
1. VISIT THE VETERANS:
They may not be old and
grizzled. Some, like Amy
Hathaway from Shoetopia
or Troy Freeman from
DigItAll Designs, are
under 40. But they have
plenty to share about their
experiences. And what
they have done will provide
the foundation upon which
you will build. (Chapter 1)
2. INVEST IN EXPERTS:
Dont think you can do this
without quality help. And
dont forget: you get what
you pay for! (Chapter 2)
3.
RUN THE NUMBERS: You may be in this for the
love of the downtown, or old buildings, or whatever. But you
need to know how much it will all cost. Will you be upside
down in your project? (Chapters 2 and 3)
4.
GET AN AGREED PRICE: Get a bid, make a deal
and stick to it. This is especially tough with some of the
professionals youll employ, but it is a must with them and
with the construction subs working on the job. Take the
time on contracting bids to allow for value engineering in
the face of big cost over-runs. (Chapters 2 and 7)

TEN

5.
DONT SKIP THE HISTORY LESSON: What you
learn may make your project more saleable for Historic
Tax Credits, marketing to the City (and through them to the
community). And its just darn interesting to know who was
there before you! (Chapter 4)

55

6.
CONNECT THE DOTS: You cant skip the mechanics
of working with the City on a rehab or construction process.
And heres another reason to hire an architect he/she can
help you navigate the murky waters of any bureaucracy.
(Chapter 5)
7.
CONSIDER THE POSSIBILITIES: Do you qualify
for a Small Business Administration (SBA) loan? Historic
Tax Credit? TIF funding? Failing to ask the question can
leave lots of cash on the table in the case of the HTC, up
to 20% of the renovation cost! (Chapter 6)
8.
KEEP YOUR EYES ON THE PRIZE: Its easy to
become distracted. Jargon, subs who only respond to repeat
customers, complex financing deals, professional fees,
waiting out government funding any number of things can
drive you to distraction. But dont forget the goal!
9.
WATCH THE CLOCK: Time is money (or something
like that), said the Mad Hatter to Alice. From spiraling
professional fees to skyrocketing construction costs to
delays that escalate your carrying costs on the construction
loan they all add to the bottom line. (Chapter 7)
10.
CELEBRATE: You earned it and dont forget to
include all the folks who helped get you there! (Chapter
8)

TEN
56

11

CHAPTER ELEVEN
COMMERCIAL REAL ESTATE NETWORK
What is the Commercial Real Estate Network?
What is the Commercial Real Estate Network?
The Commercial Real Estate Network, also referred
to as CREN, was established in 1999 as a service of
the Capital Area Association of REALTORS. CREN
caters exclusively to the needs of REALTORS who
are engaged in the practice of commercial real estate
brokerage and leasing throughout the Illinois Capital
Area. The mission of CREN is to promote the cooperative
transaction of commercial real estate business in the
Capital area through education, information, networking
and the open exchange of timely, accurate property
information.
The objectives of CREN are to:
Unite REALTORS in the Capital Area who specialize
in commercial real estate brokerage and leasing;
Continue to be the most comprehensive and up-to-date
source of commercial real estate listings throughout
the Capital Area;
Encourage cooperation, networking and the exchange
of specialized information among commercial
practitioners; and,
To assist in advancing the economic growth of the
community by effectively exerting a beneficial influence
oncommercial real estate.

ELEVEN

RCA Accreditation
In 2008, CREN was among the very first commercial
structures in the country to receive the RCA Commercial
Services Accreditation conferred by the REALTORS
Commercial Alliance (RCA), the commercial division of
the National Association of REALTORS. Some of the
things that the application asks about that sets CREN
apart from many other REALTOR associations include:
the operation of a commercial information exchange
(CIE), a dedicated commercial website, networking
events, a membership consisting of at least 5% of total

57

members and specialized education programs, to name a

few.
For additional information on CREN or to activate your
account contact the Capital Area Association of
REALTORS at 217/698-7000 or via email at
info@caaronline.com.
Would you enter into a business deal without expert consultation?
Leasing a commercial property is a massive, time-consuming and
complicated process. You need someone with experience to help
you, someone who specializes in business properties, and commits to a strict code of ethics.
When youre ready to lease, buy or sell a commercial property,
make sure youre working with a REALTOR and a member of the
Commercial Real Estate Network.
In May of this year the
Commercial Real Estate Network was among the first
to receive the RCA Commercial Services Accreditation from the
REALTORS Commercial Alliance.

COMMER CIAL
Real Estate

COMMERCIAL SERVICES

Commercial Real Estate Network

It pays to consult a member of CREN
The Commercial Real Estate Network (CREN) is a service of the Capital Area Association of REALTORS.

The official website of CREN is www.SeeBuildings.com.

ELEVEN
58

DIRECTORY
COMMERCIAL REAL ESTATE NETWORK of the CAPITAL AREA
ASSOCIATION of REALTORS
Barber, David
Illini Properties
22 Virginia Lane, Springfield, IL 62712
davidbarber2@gmail.com
217-529-1236 (Cell) 217-652-1064 (Fax) 217-529-8358
Barber, John
Barber, John A., Inc.
1333 Wabash Avenue, Springfield, IL 62704
thecub@insightbb.com
217-725-1111 (Fax) 217-792-2555
Beck, Mark
Aspen Real Estate Company
3261 Meadowbrook Road, Springfield, IL 62711
markabeck@mac.com
217-698-9956 (Fax) 217-726-0850
Bledsoe, E. Rodell
Bledsoe Real Estate
1516 South Pasfield, Springfield, IL 62704
crerodell@sbcglobal.net
217-525-2244 (Cell) 217-638-5967 (Fax) 217-525-2243
Camerer, Joe
Commercial Appraisal Network
10 S. Brentwood Blvd., Ste 414, Clayton, MO 63105
appraisalnetwork@sbcglobal.net
314-862-9199 (Fax) 314-862-9299
Clark, John
Real Estate Group
3701 West Wabash, Springfield, IL 62711
johnbclarkrealtor@motion.net
217-787-7000 (Fax) 217-787-7779

Drewes, Jerome
Landmark Real Estate, Inc.
3085 Stevenson Drive #303, Springfield, IL 62703
landmark.re@sbcglobal.net
217-529-1200 (Fax) 217-529-1235
Dugan, Bianca
NAI True
3500 Mitchell Drive, Springfield, IL 62711
bianca@naitrue.com
217-787-2800 (Cell) 217-899-8010 (Fax) 217-787-2802
Egizii, Rodney
Aspen Real Estate Company
3261 Meadowbrook Road, Springfield, IL 62711
re@aspensellshomes.com
217-698-9956 (Cell) 217-836-4000 (Fax) 217-726-0850

DIRECTORY

Curvey, Bernard
Curvey Real Estate, Inc.
611 Springfield Rd, P.O. Box 677, Taylorville, IL 62568
curvey@ctitech.com
217-824-4996 (Fax) 217-287-2111

59

Faeth, Bob
Realty Executives
128 South Grand Ave. W., Springfield, IL 62704
rlfaeth@aol.com
217-547-5500 (Cell) 217-652-6091 (Fax) 217-547-5503
Frost, Tom
Aspen Real Estate Company
3261 Meadowbrook Road, Springfield, IL 62711
thomas_frost@sbcglobal.net
217-698-9956 (Cell) 217-652-8972 (Fax) 217-391-2483
Fulgenzi, James
Re/Max Professionals
2475 West Monroe, Springfield, IL 62704
jim@yourhome101.com
217-787-7215 (Cell) 217-341-5393 (Fax) 217-787-8957
Garrison, Roger
Garrison Group, Inc.
1999 Wabash Ave. Ste. 202, Springfield, IL 62704
roger@garrisongroupinc.com
217-241-0202 (Cell) (Fax) 217-241-4202
Graham, Kevin
Real Estate Associates LLC
2030 Timberbrook, Springfield, IL 62702
KGraham367@aol.com
217-789-7200 (Cell) 217-638-5100 (Fax) 217-789-2600
Higginbotham, Michelle
Coldwell Banker Commercial Devonshire
3201 Old Jacksonville Rd., Springfield, IL 62711
mhigginbotham@devonshire-realty.com
217-726-3197 (Cell) 217-553-4629 (Fax) 217-726-3181
Hohmann, Richard
Hohmann Agency
1850 W. Morton, Jacksonville, IL 62650
rhbroker@mchsi.com
217-245-6166 (Cell) (Fax) 217-245-6167

DIRECTORY
60

Jackson, Susan
Garrison Group, Inc.
1999 Wabash Ave. Ste. 202, Springfield, IL 62704
susan@garrisongroupinc.com
217-241-0202 (Cell) 217-553-4244 (Fax) 217-241-4202
Kent, Douglas, CCIM
Charles Robbins, REALTORS
2144 S. MacArthur, Springfield, IL 62704
dkent99@msn.com
217-525-2112 (Cell) 217-725-5161 (Fax) 217-525-0545
Kilroy, John
Re/Max Professionals
2475 West Monroe, Springfield, IL 62704
john@johnkilroy.biz
217-787-7215 (Cell) 217-816-5788 (Fax) 217-787-8957
Klemm, John
Sangamon Realty
3900 Wood Duck Drive, Suite A, Springfield, IL 62711
pipergl@aol.com
217-793-1967 (Fax) 217-793-8601

Kramer, Rick
Coldwell Banker Commercial Devonshire
3201 Old Jacksonville Rd., Springfield, IL 62711
rick.kramer@devonshire-realty.com
217-547-6650 (Cell) 217-309-0999 (Fax) 217-215-5195
Kuhar, James
Aspen Real Estate Company
3261 Meadowbrook Road, Springfield, IL 62711
jim@jimkuhar.com
217-698-9956 (Cell) 217-415-5555 (Fax)
Leonard, Lindsey
Coldwell Banker Commercial Devonshire
3201 Old Jacksonville Rd., Springfield, IL 62711
lindsey@curtistillett.com
217-547-6650 (Cell) 217-899-4888 (Fax) 217-726-3199
Madden, Derek
Coldwell Banker Commercial Devonshire
3201 Old Jacksonville Rd., Springfield, IL 62711
derek.madden@cbcdr.com
217-547-6650 (Cell) 217-971-5322 (Fax) 217-726-3181
Mahoney, Ed
Re/Max Professionals
2475 West Monroe, Springfield, IL 62704
mahoneyed@juno.com
217-787-7215 (Cell) 217-494-6468 (Fax) 217-787-8957
Marriott, Bill
Real Estate Group
3701 West Wabash, Springfield, IL 62711
marriottjr@comcast.net
217-787-7000 (Cell) 217-741-0198 (Fax) 217-787-7779

Myers, Steve
Myers Commercial Real Estate
1 W Old State Capitol Plaza, Springfield, IL 62701
smyers@myerscommercialre.com
217-747-0019 (Cell) 217-306-4137 (Fax) 217-747-0026
Nichols, Samuel
NAI True
3500 Mitchell Drive, Springfield, IL 62711
sam@naitrue.com
217-787-2800 (Cell) 217-494-0800 (Fax) 217-787-2802
Peters, Jim
Coldwell Banker Commercial Devonshire
3201 Old Jacksonville Rd., Springfield, IL 62711
jpeters645@aol.com
217-547-6650 (Cell) 217-899-8150 (Fax) 217-726-3181

DIRECTORY

Myers, Michelle
Coldwell Banker Commercial Devonshire
3201 Old Jacksonville Rd., Springfield, IL 62711
mmyers@devonshire-realty.com
217-547-6650 (Cell) 217-825-9897 (Fax) 217-215-5195

61

Polk, Dennis
Realty Executives
128 South Grand Ave. W., Springfield, IL 62704
DennisLPolk@hotmail.com
217-547-5500 (Cell) 217-725-3131 (Fax) 217-547-5503
Raftis, Amelia
Hurwitz Enterprises
One Lawrence Square, Springfield, IL 62704
ARaftis@blackstonehurwitz.com
217-544-4002 (Cell) 217-415-1338 (Fax) 217-544-5711
Seppi, Art
Charles Robbins, REALTORS
2144 S. MacArthur, Springfield, IL 62704
art@seppi.us
217-525-2112 (Cell) 217-652-7755 (Fax) 217-525-0545
Skeeters, James A.
Real Estate Center
808 Bruns Lane, Springfield, IL 62704
hnstjim@sbcglobal.net
217-546-6001 (Cell) 217-971-8000 (Fax) 217-546-6074
Skeeters, James J.
Re/Max Professionals
2475 West Monroe, Springfield, IL 62704
jimskeeters@remax.net
217-787-7215 (Cell) 217-971-6775 (Fax) 217-787-8957
Smith, Todd
Garrison Group, Inc.
1999 Wabash Ave. Ste. 202, Springfield, IL 62704
todd@garrisongroupinc.com
217-241-0202 (Cell) 217-553-5439 (Fax) 217-241-4202
Spengler, Philip
Wanless-Spengler, Ltd.
1333 Wabash Avenue, Ste. B, Springfield, IL 62704
spengler@comcast.net
217-793-2555 (Cell) 217-622-6226 (Fax) 217-793-2555

DIRECTORY
62

Sperry, Dan
RE/MAX Commercial Properties
2302 Little Round Top, Edwardsville, IL 62025
dan@sperrylistings.com
217-529-1600 (Cell) 217-725-2467 (Fax) 217-718-4239
Tillett, Curtis
Coldwell Banker Commercial Devonshire
3201 Old Jacksonville Rd., Springfield, IL 62711
curtis@curtistillett.com
217-547-6650 (Cell) 217-553-7022 (Fax) 217-726-3199
Webb, Betty
Webb & Associates Realty
2709 W. Washington, Ste. D, Springfield, IL 62702
bettywebb@realtor.com
217-726-8000 (Cell) 217-341-4924 (Fax) 217-726-8090

Located at I-55 and I-72

in Sangamon County

THE PATHFINDERS
workforce report available

Affordable properties

Lower tax rates, incentives

and reliable electricity

Freight Model and Cost Comparison Report Available

217-525-1173 www.springfieldinthemiddle.com
The Chamber and Q5 are proud to partner with

217-525-1173
www.springfieldinthemiddle.com
Downtown
Springfield, Inc.