Thorndale Corridor Master Plan, Financing and Implementation Strategy
SB Friedman was part of a consulting team, including the Lakota Group and TranSystems, engaged by the City of Wood Dale to prepare a master plan for the Thorndale Corridor. This major arterial roadway is planned to be converted to a limited-access expressway and will serve as the access corridor for the new western terminal at O’Hare International Airport. The City’s goal is to capitalize on these major transportation improvements to create a new commercial gateway to the airport and encourage the redevelopment of the area, which is primarily characterized by relatively older warehouse and industrial uses.
SB Friedman conducted a real estate market analysis to quantify the development potential of the area that focused on office, hotel and supportive retail uses, which are key components of airport gateway development. A detailed study of the real estate demand and supply factors of office and hotel uses was conducted, including projections of the amount of future demand that could be captured in the Thorndale Corridor. The findings of the analysis were synthesized to create a supportable development program and development parameters to guide the physical planning of the area.
Following City approval of the Thorndale Corridor Master Plan, SB Friedman was retained to develop a financing and implementation strategy for the Main Street portion of the plan. Current land uses and levels of infrastructure in this approximately 120-acre corridor indicated that public participation would likely be required. Key components of preparing the area include: land assembly dealing with a diverse group of land owners and valuable industrial land proximate to O’Hare International Airport, local roadway restructuring, and expanded stormwater infrastructure to accommodate increased run-off.
SB Friedman identified a phasing strategy to guide the implementation process, then focused on quantifying the development costs and potential sources of funds required to implement the first phase of Main Street. Potential funding identified included local financing tools, capacity of municipal operating and capital improvement funds, and partnerships with local developers, land owners and other governmental units. SB Friedman also analyzed the productivity of several local financing tools including tax increment financing, special service areas, business development districts, and local option infrastructure sales tax.
Results: The potential development program projected through 2025 included almost 1 million square feet of office space, six hotels, 30,000 square feet of supportive retail space, and the potential to host one or two “wild card” corporate headquarters facilities. This program was used by the team in the conceptual planning process. The final plan was approved by the City and SB Friedman was retained to develop a detailed project financing and implementation strategy. SB Friedman’s strategy focuses on redevelopment phasing and quantifying the sources and uses required for the first catalytic development in the corridor. SB Friedman is currently working with the City of Wood Dale Staff and City Council to facilitate discussions on the financing order of magnitude, use of potential local financing tools, and forming partnerships between landowners.
