SB Friedman (SB Friedman) prepared tax increment financing (TIF) projections, as well as ancillary projections of other public revenue sources such as sales, hotel, and food & beverage tax, for a bond issuance supporting a proposed Westin Hotel development in Wheeling, IL. The projections included careful consideration of hotel property tax levels that could realistically be expected, as well as detailed review of the likely phase-in of value to full stabilization. These steps included:
- Detailed review of the market analysis materials and operating revenue/expense projections provided by the Developer
- Review of sales productivity of comparable retail
- Review of assessment and taxation levels of analogous hotels in Cook County
The projections were used to support a private placement of bonds by William Blair & Company. SB Friedman documented its findings, assumptions, methodology, and key risk factors in a feasibility study/disclosure report that was included in the bond offering materials.
Results: $23.5 million of bonds were successfully placed in August 2005, at a 6.0% interest rate. The hotel opened in October 2006.