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  • Chicago Riverwalk investment memorandum

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  • Table of Contents

    Investment Opportunity 5.

    Chicago Overview 9.

    Guiding Principles 31.

    Development Opportunities 37.

    Structure Overview 55.

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  • Investment Opportunity

    The City of Chicago (City) is pleased to offer an exciting investment opportunity available in the downtown Chicago submarket. The City advances a commercial development, operations, and management opportunity for partnership on the Chicago Riverwalk.

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  • Investment Opportunity Request for Proposals

    The information enclosed provides some of the details necessary for you and/or your partners to put forth a proposal to respond to the Request for Proposals (RFP) issued by the City of Chicago on August 6, 2014, Bid Specification number 126330, Requisition number 92533.

    This Investment Memorandum, which containsbrief, select information pertaining to the business and affairs of the Property, has beenprepared by the City of Chicago in collaboration with World Business Chicago (WBC). This Investment Memorandum does not purport to beall-inclusive or to contain all of the information a prospective partner may desire. Neither the City nor WBC, nor any of their officers, employees, or agents makes any representationor warranty, express or implied, as to the accuracy or completeness of the Investment Memorandum or any of its contents and nolegal liability is assumed or shall be implied withrespect thereto. The City expressly reservesthe right, at its sole discretion; to reject any orall expressions of interest or offers to partner

    on the Chicago Riverwalk unless and until acontract has been fully executed and delivered.

    The structure of the Partnership identified inthe RFP issued is that Partners may propose amanagement agreement or a long term lease with an upfront payment so as to meet the Citys project finance requirements. Respondents maypropose an alternative structure that meets theproject finance requirements of the Riverwalk.The Partner is responsible for the developmentof the commercial retail on the Riverwalk, the programming of the Riverwalk, and the operations and maintenance of the entire Riverwalk.

    This Investment Memorandum shall not be deemed to represent the state of affairs of theProperty or constitute an indication that there has been no change in the state of affairs of the Property since the date the InvestmentMemorandum was prepared.

    7

  • Investment Opportunity Chicago Riverwalk Investment Highlights

    Photo cc Chris Smith on Flickr

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  • Chicago Overview

    Chicago has one of the world's largest and most diversified economies, with more than four million employees and generating an annual gross regional product (GRP) of over $500 billion. The City is an efficient economic powerhouse that is home to more than 400 major corporate headquarters, including 31 Fortune 500 headquarters.

    Centrally located and with a population of 9.5 million people and 4.4 million employees, Chicago is home to an unrivaled workforce, economy, and quality of life. The Economist Intelligence Unit ranked Chicago among the worlds top 10 most competitive cities for business.

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  • Chicago Overview The Population

    City of Chicago

    2,718,782

    Total Chicago MSA Population

    9,537,289

    LargestCentralized Metro in theU.S. withAbundant Talent Pipeline in One of theWorlds LargestEconomies

    Chicago is the heart of a majormetropolitanareacomprised of:

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    The Chicago's city center is home to 2.7 million residents and 1.2 million employees,a significant number of whom are young and collegeeducated a major sellingpoint for companies looking toattract the best and brightestin the region.

    11

  • Chicago Overview The Economy

    3 JAPAN $5,960

    21 CHICAGO $531

    2 CHINA $8,358

    8 RUSSIA $2,015

    20 SWITZERLAND $632

    13 SPAIN $1,349

    9 ITALY $2,013

    6 U.K. $2,435

    22 SWEDEN $526

    7 BRAZIL $2,253

    5 FRANCE $2,613 CC

    $

    11 CANADA $1,821

    10 INDIA $1,842

    1 UNITED STATES $15,685

    14 MEXICO $1,178

    12 AUSTRALIA $1,521

    15 KOREA $1,130

    55

    18 NETHERLANDS $772

    24 POLAND $490

    16 INDONESIA $878

    4 GERMANY $3,400

    25 BELGIUM $484

    19 SAUDI ARABIA $711

    17 TURKEY $789

    23 NORWAY $500

    Source: World Bank (2012), Moodys Analytics (2012), WBC (9/23/13) 12

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    $531BEconomyRivalsNations

  • 13

    Chicago Overview Key Industries

    RankedTop 5among 350+ metro areasnationwide forGross Regional Product (GRP)/ Outputin:

    t Business& ProfessionalServices: 736,600 employees; $85 billionGRP

    t FinancialServices: 287,100employees; $123 billion GRP

    t Manufacturing: 413,800employees; $68 billion GRP

    t Transportation&Warehousing: 184,000employees; $19 billion GRP

    t HealthServices: 527,500employees; $36 billion GRP

    Photo cc Chris Smith on Flickr

  • Chicago Overview Access to the Countrys Brightest Minds

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    Tremendous Talent Pipeline

    t The CCChicagoLoop isthe largest college town in Illinois,withmore than 65,000students

    t Morethan145,000 college degrees conferred every yearbby neeearly150 Chicago area collegeees anduniversities,including 25,0000000 bbachelorsdegrees, 18,000 masters dddegrees,and 4,000 doctoral degrees in the cityalone

    t Home to Kellogg School of Management at Northwessteern University and The Univerrsiity of Chicago Booth School off Buuusiness, two of the top graduate business schools in the world

    Photo cc Simon Goncalves on Flickr

  • 15

    Chicago Overview Accessibility

    Only dual-hub airport system in North America handling 1,400+ daily departures and 90 million passengers annually

    Non-stop service to more than 200 domestic and international destinations

    Source: Innovata (April 2014), Chicago Department of Aviation (2014), WBC (4/4/14)

    Best-ConnectedAirport in theU.S.

  • 16

    Chicago Overview The Economy

    95

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    0 50 100 150 200 250

    Atlanta

    Detroit

    Dallas

    Houston

    U.S. Average

    Miami

    Chicago

    Philadelphia

    Los Angeles

    Boston

    Washington, D.C.

    San Francisco

    New York (Manhattan)

    Source: C2ER Cost of Living Index (2013), WBC (6/4/14)

    Cost of Living = Best ValueCity

  • Chicago Riverwa

    lk

    Navy Pier

    Millennium Park

    Buckingham Fountain

    Union Station

    Mag

    Mile

    t 48.4 million visitors in 2013, up from 39.3 million in 2010

    t 55.0 million visitors by 2020

    t TripAdvisor Users Rank Chicago #2 for Top U.S. Destination after NYC

    t 85% May 2014 Hotel Occupancy

    t $227.59 Average Hotel Rate

    t The George Lucas Museum of Narrative Art will call Chicago home

    t The City of Chicago issued an RFP for the Concept Design for a city-wide lighting framework plan in May which will incorporate the River

    Chicago TourismA Snapshot

    Photo Courtesy of Gensler

    The dots in the image represent the quantity of photos taken by tourists.

    17

  • History of the River

    Chicagos phenomenal growth into a majorurban center is due, in large part, to its strategic location on the Chicago River and Lake Michigan. As early as the 1600s the river and the lake were major trade routes. By the Citys incorporation in 1837, the river had already been established as a desirable location for industrialdevelopment.

    The first meat packing plant adjacent to the riveropened in 1829 and the first lumber mill in 1833. These two industries were located just north of Wolf Point at the confluence of the north and south branches of the Chicago River. Thecompletion of the Illinois and Michigan Canal in 1848 linked Lake Michigan with the Mississippi River, dramatically increasing river traffic. By the 1860s, the river had become the focus of industrial development with an emphasis on meat packing and lumber.

    In the citys early history the river was also used as a sewage outlet. Waste flowed east

    to Lake Michigan, the citys drinking watersource, resulting in frequent outbreaks of water-borne diseases. In the 1890s, work began onthe Sanitary and Ship Canal to protect thewater supply and to provide greater shippingcapacity. The construction of the Canal and its locks reversed the flow of the river, sendingpollution away from Lake Michigan and into the Mississippi River system.

    The Sanitary and Ship Canal also becamethe main materials transportation artery, replacing the obsolete Illinois and Michigan Canal which was eventually filled in. Chicagos industrial legacy will likely remain a strong feature of development along the Chicago River, particularly along the South Branch and the Sanitary and Ship Canal. However, public demand for access and recreationalamenities continues to grow, ensuring thatfuture development will include a diverse mixof industrial, commercial, residential, andrecreational uses.

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  • Riverwalk Infrastructure Plan

    The Chicago Riverwalk extension (the Project) ispart of the larger Wacker Drive Reconstruction Project. Wacker Drive is a multi-level major thoroughfare through downtown Chicago (theCity) that runs adjacent to the Chicago Riverfrom Lake Shore Drive to the Eisenhower Expressway.

    The Wacker Drive Reconstruction Project, consists of 3 phases, East-West, North-South, and the Riverwalk. The intention of the Riverwalk Project was to complement the new roadway and bring residents and visitors down to the river level. Portions of the Riverwalk, including East of Michigan were completed in the 90s. The Vietnam Memorial was dedicatedin 2005.

    The original Phase I portion of the Riverwalkwas completed in 2009 and runs west from Michigan Avenue to the east side of the State Street Bridge. This segment includes the

    Vietnam Veterans Memorial as well as a limited number of restaurants and vendors.

    The Riverwalk Extension, known as Riverwalk Phases II and III, is underway and is planned for a six-block section of Lower Wacker Drive along the southern bank of the Chicago River, running west from State Street and curving south to Lake Street. The project is envisionedas an alternative pedestrian pathway that willinclude recreational, educational, retail and restaurant opportunities. Currently, there is not acontinuous walkway along the river.

    Through Federal assistance by the Transportation Infrastructure Finance Innovation Act (TIFIA), the City has invested ininfrastructure build-out of the marine sea wall and public amenities and seeks a commercialdevelopment partner for the commercialcomponent of the Riverwalk.

    Photo cc Simon Lutman on Flickr

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  • Riverwalk Location & Map

    The Chicago Riverwalk is situated between the Chicago Loop to

    the south and its River North, Magnificent Mile, and Streeterville

    neighborhoods to its north.

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    O'Hare International Airport

    Midway International Airport

    LAKE MICHIGAN

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    Riverwalk Visitors

    BBased on ccuurrrent estimaattiioons, there are aboouutt 1.555 millioonn uuseers of the Riverwalk.

    t 42000,,,000000 RRRiivveerwwwalk ttooouur bboaattt pppaatrrooonns

    ttt 98,,,0000000 cuuusssttoommmeerrs offf eexissstttiiinnggg retaiiland serviceee vendorrs

    t 1,033366,0000 sighhttssseeeeiinng visitooorrrsss

    These numbers do nooot iinncluudde joggggers anddd wwalkers alrready usinngg thhe ppaatthh..

    With a fully activated and cccoonnttiguous Riveerrwwalk, thee user base wwwiilll grow sigggniificccantly.

    Photo cc Hi Tricia on Flickr

  • 22

    Planned DevelopmentWolf Point

    At the confluence of the Main Branch, South Branch and North Branch of the ChicagoRiver, Wolf Point is a $1.0+ Billion development projectwith three planned towers of over 3 million square feetapartment, office, and mixed-use space. The project planis to include 2.3 acres of parkand pedestrian areas.

    Photo Provided by Magellan

  • Planned DevelopmentRiver Point

    Across from Wolf Point, River Point,a 52-story office tower, including a 1.5 acre public park and newriverwalk, is being developed over the railroad tracks on the Riverfront.At the Rivers confluence, Room 6of the Riverwalk Project, Wolf Point,and River Point will anchor thethree land banks.

    Photo provided by Hines

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  • Area DevelopmentOne Eleven

    Photos Provided by Related

    24

    Delivered by Related Rentals and situated at 111 W. Wacker across from the Chicago River,a 60-story apartment towerwith 504 apartments, openedto its first residents in July.

  • Photo cc John Tolva on Flickr

    Photo cc John Tolva on Flickr

    Area TrendsTechnology Submarket

    222 W. Merchandise MartPlazaLocated on the River at 222W Merchandise Mart Plaza, the Mart is the countryslargest commercial building. The Mart has emerged asone of the hottest downtownbuildings for technologyoffices in Chicago. The Merchandise Mart houses1871 (Chicagos digital startuphub), Matter (health relatedtechnology hub), Potbellys,Motorola Mobility, Allscripts,and Publicis.

    Other Digital News$468 million has been raisedin 2014 through June by digital startups, an 128%increase year over year.

    Notable exits by startups in2014 include the Fieldglassacquisition by SAP for $1 billion and Apartments.comacquisition by CoStar for $585million.

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  • Area TrendsEntertainment District

    River North has become the go-to district for patrons whoappreciate fine art and design.The momentum behind thelatest trendsetting dining,lounge, and club openingscontinues to build and the latenight energy swells as River North is becoming the hotspot for fine dining and drinks.Just about every type of cuisine is covered in this mix of award-winning restaurants and local favorites.

    As Chicago gains recognitionas a top culinary destination,the City will host the 2015 James Beard Awards - the first time hosted outsideof NYC since the awards inception.

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    Photo Credit: Cesar Russ Photography, Choose Chicago

    Photo cc J. from Flickr

    26

  • r 550,000 employees or 41% of the Citys workforce

    rPopulation growth of residents has grown 40% since 2010

    rThe highest percentage of any category in consumer spending is on Food and Alcohol (25%)

    r 37.7 average age, $113k average household income

    DemographicsWithin one mile of the Riverwalk

    Photo cc Elvis Pepin on Flickr27

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  • RetailStrong Retail Market around the Chicago River

    SubmarketVacancy Rate Q1 2014

    Average Quoted Rental Rates (NNN)

    Chicago Metro Total 8.5% $38.90

    Greater North Michigan Avenue

    11.9% $68.47

    River North 2.6% $28.31

    Chicago Loop 7.9% $49.67

    Photo cc Terence Faircloth on Flickr

    Photo cc John Gevers on Flickr

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  • Current Conditions

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    Active constructtion betwweeen Dearborn Street and Wabbbashh SStreeettt withh thee State SSStreet Bridge raiseeeddd.

  • Guiding Principles

    The City of Chicago has defined four guiding principles for the Chicago Riverwalk:Access, Activation, Authenticity and Sustainability.These themes are core to the belief thatthis project is creatinga world-class public waterfront reunitingcitizens withthe river that gave Chicago life.

    These principles will be woven into every aspect of the completed Riverwalk. The Principles should be considered and revisited up to completion. And most importantly throughout the Riverwalks life the principles should carry as critical amenity to the residents and visitors of Chicago.

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  • Photo cc JD Medina on Flickr

    Cities have historically been built along rivers because they were indispensable resources for transportation and commerce. Chicago's earliest settlement began along the Chicago River and it served as Chicago's harbor until the early 20th century; it has always been a social and economic hub.

    While the Chicago River is still an important part of local and regional industry, it is also Chicagos second coastline, connecting Chicagos most recognizable landmarks and destinations. The Riverwalk project will provide unprecedented access to the River, giving Chicagoans and visitors a dynamic pathway to experience Chicago and connect to the city's many cultural, natural, and commercial assets.

    1. Bring people to the water

    r Maintain a continuous public walkway

    r Improve vertical circulation

    r Easy to locate and navigate

    2. Establish connections

    r Promote as vibrant, active link to the lakefront and other Chicago landmarks

    r Establish the Riverwalk as a connecting thread that runs through the City

    3. Access for everyone

    r ADA compliant

    r Improve perceived and actual safety

    r A neighborhood amenity for all to enjoy

    Access

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  • Photo cc Chris Oakley on Flickr

    Making the River easier to access will have a profound effect on the number of annual visitors. Seasonal programming, unique gathering spaces to host events, and leasable space for restaurants and retail will bring activity and life to the River and will bring a strong sense of place to an already historic space.

    1. Bring life to the River

    r Provide more seasonal public river uses

    r Ensure year round program and activity

    r Increase recreational and commercial boating

    2. Create space for civic gathering & diverse events

    r Promote the space for groups and entertainment functions

    r Invest in placemaking, creating unique places on the river

    3. Economic activation

    r Developing new opportunities along the Chicago River

    r Improve commercial functions and maximize leasable opportunities

    r Support commercial boating activity

    Activation

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  • Photo cc Chris Smith on Flickr

    The Chicago River has shaped the city and remains an important part of the downtown urbanscape. It is important that the Riverwalk work in harmony with the existing context of the city. The River is authentic Chicago, it should not feel overly manicured or scripted, but always retain a strong feeling of nature, history, and community.

    1. Weave the life of the River in the urban fabric of the City

    t Work in dialogue with existing urban context

    t Maintain a sense of unpredictability and encourage the unexpected

    2. Embrace the history of the River

    t Honor and showcase history

    t Celebrate the rivers uniqueness of its buildings, bridges, bridge houses, skyscrapers, and architecture

    3. Enhance community life

    t Outreach to residents of Downtown and River North

    t Utilize green and open spaces for fitness, wellness, and educational programming

    t Feature public art from local artists

    3. Balance local pride with tourist intrigue

    t Promote the Riverwalk as a neighborhood amenity for all Chicagoans to enjoy

    t Sell the Riverwalk to visitors as a connection point that weaves together all the best of downtown Chicago

    Authenticity

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  • The Riverwalk Guiding Principles are built upon a platform of sustainability. Many steps have been taken to ensure that the Riverwalk project will have a positive effect on the environment and take steps to rebuild the natural habitat of the Chicago River. The following list is a sampling of the some of the sustainable practices used. To ensure continued success, there must be a conscious effort to keep sustainability at the forefront of the Riverwalk experience.

    t A variety of native plants will be reintroduced and used in the landscaping, attracting native animals and minimizing maintenance needs

    t A rainwater collection system will be tied into the irrigation system to water sections of new landscaping

    t Existing architectural elements are being salvaged for future use and to be reincorporated back into the project

    t Concrete and aggregate that are being removed will be recycled and used to fill in other new areas

    t Elements of existing seawall will be incorporated into the structural stability of the new dock wall

    t Best management practices to promote sustainability in the operations and on-going daily maintenance of the Riverwalk

    Sustainability

    36

  • Development Opportunities

    With over 100,000 square feet of commercial development opportunity, the Chicago Riverwalk is a great example of how successfully creating land will capture future value.

    The Chicago Riverwalk is a transformative placemaking opportunity to activate the historically significant Chicago River year-round for both residents and tourists.

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  • The Riverwalk

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    PHASE 2 PHASE 3

    NPHASE 1

    2009 DEVELOPMENT (COMPLETE)

    PEDESTRIAN AND BIKE PATHS

  • Active Phases

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    PHASE 2:STATE TO LASALLE

    COMPLETION DECEMBER 2014

    PHASE 3:LASALLE TO LAKE

    COMPLETION ANTICIPATED 2016

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  • Development Opportunities

    The areas included in thissection are a suggestion,and the City will entertainproposals that suggestadditional concepts andopportunities to maximizethe potential of the entireRiverwalk footprint.

    The City is particularly interested in proposalsthat ensure the year

    round activation of the Riverwalk. In climates with weather uncertainty, some architectural designs that arebecoming popular include tenting, retractable roofing, patio enclosures, andadaptable awnings. Examplesare shown below as illustrativeexamples of opportunity forthe Riverwalk.

    Retractable Roof At I/O Urban Roofscape, The Godfrey Hotel Chicago

    Retractable Roof At I/O Urban Roofscape, The Godfrey Hotel ChicagoPhoto cc Boris Mitendorf on Flickr

    41

  • Phase OneWabash Plaza - Parcel One

    42

    Location45 Chicago Riverwalk, In the Current OBriens Space directly east of Wabash

    Uses Restaurant, caf, etc.

    Completion Date: 2009

    Gross Leasable Area (SF)

    11,315 SF of Total Developable Arear 5,258 SF of interior arear 6,057 SF of exterior area with option to enclose,

    Option to build 2 levels

    Vertical Build-out Maximum (Floors)

    Main Riverwalk Level and Upper Wacker Drive (2)

    Back of House Back of House Location 1

    Boat Docking N/A

    Other Delivery Options:Off Peak Truck delivery on Upper Wacker Drive (12am 6am)

    UtilitiesElectrical, water, sanitary and storm drainage utility infrastructure available; gas lines available at nearby bridgehouse

    Development Constraints

    City will entertain optional proposals that the ramp be demolished to allow for a two-story structure. However, any such proposal must, at minimum, provide for very significantly increased revenue for the City and adequate emergency access.

    Photo cc Multisanti on Flickr

  • Phase OneWabash Plaza - Parcel Two

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    LocationChicago Riverwalk, Space directly west of Wabash and next to Vietnam Memorial

    Uses Restaurant, caf, etc.

    Completion Date: 2009

    Gross Leasable Area (SF)

    6,113 SF of Total Developable Arear 6,113 SF of interior arear 0 SF of exterior area

    Vertical Build-out Maximum (Floors)

    Main Riverwalk Level (1)

    Back of House Back of House Location 1

    Boat Docking N/A

    Other Delivery Options:Off Peak Truck delivery on Upper Wacker Drive (12am 6am)

    UtilitiesElectrical, water, sanitary and storm drainage utility infrastructure available; gas lines available at nearby bridgehouse

    Development Constraints N/A

    Photo cc Tony on Flickr

  • Phase OneEast of Michigan

    44

    LocationChicago Riverwalk, Riverwalk space directly east of Michigan Avenue to Columbus Ave.

    Uses Retail, Commercial boat docks, cafes, food trucks, etc.

    Completion Date: 2009

    Gross Leasable Area (SF) To be determined by developer

    Vertical Build-out Maximum (Floors)

    Main Riverwalk Level

    Back of HouseLowest Level Wacker at Columbus possible depending on proposal to activate the space

    Boat Docking Sites east of Columbus to be considered

    Other Delivery OptionsOff Peak Truck delivery on Upper Wacker Drive (12am 6am)

    Utilities Utilities would need to be brought to the site

    Development Constraints N/A

    SOM rendering 2009; For Illustrative purposes only

  • Phase TwoThe Marina Plaza

    LocationChicago Riverwalk, between State and Dearborn Streets

    Uses Retail, Restaurant, Recreational Boat Docking etc.

    Completion Date: December 2014

    Gross Leasable Area (SF)

    6,450 SF of Total Developable Arear 1,750 SF of interior arear 4,700 SF of exterior area with

    option to enclose

    Vertical Build-out Maximum (Floors)

    Main Riverwalk Level only (1)

    Back of House Back of House Location 1

    Boat Docking LF 325 Linear Feet, Recreational docking

    Other Delivery OptionsOff Peak Truck delivery on Upper Wacker Drive (12am 6am)

    UtilitiesElectrical, water, sanitary and storm drainage utility, gas infrastructure available and brought to site: Actual connections will be responsibility of Developer

    45

  • Phase TwoThe Cove

    Location Chicago Riverwalk, between Dearborn and Clark Streets

    Uses Retail, Caf, Bakery, Coffee Shop, etc.

    Completion Date: December 2014

    Gross Leasable Area (SF)1,750 SF of Total Developable Arear 1,750 SF of interior area

    Vertical Build-out Maximum (Floors)

    Main Riverwalk Level only (1)

    Back of House Back of House Location 1

    Boat Docking LF 0 Linear Feet, Human powered water craft

    Other Delivery OptionsOff Peak Truck delivery on Upper Wacker Drive (12am 6am)

    UtilitiesElectrical, water, sanitary and storm drainage utility, gas infrastructure available and brought to site: Actual connections will be responsibility of Developer

    46

  • LocationChicago Riverwalk, between Clark and Lasalle Streets

    UsesKiosks, Concerts, Water Taxi, Charter Boats, Theater performances, Boat Rental

    Completion Date: December 2014

    Gross Leasable Area (SF)0 SF of Total Developable Arear 0 SF of interior area

    Vertical Build-out Maximum (Floors)

    Main Riverwalk Level only (1)

    Back of House Back of House Location 1

    Boat Docking LF90 Linear Feet for Water Taxis or Charter Boats

    Other Delivery OptionsOff Peak Truck delivery on Upper Wacker Drive (12am 6am)

    UtilitiesElectrical: Actual connections will be responsibility of Developer

    Phase TwoThe River Theater

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  • Phase ThreeThe Water Plaza

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    LocationChicago Riverwalk, between Lasalle and Wells Streets

    Uses Family-friendly restaurant or retail

    Completion Date: December 2014

    Gross Leasable Area (SF)5,765 SF of Total Developable Arear 950 SF of interior arear 4,815 SF Total Exterior Area with option to enclose

    Vertical Build-out Maximum (Floors)

    Main Riverwalk Level only (1)

    Back of House Back of House Location 2

    Boat Docking LF270 Linear Feet for Recreational Boat Docking

    Other Delivery OptionsOff Peak Truck delivery on Upper Wacker Drive (12am 6am)

    UtilitiesElectrical, water, sanitary and storm drainage utility, gas infrastructure available and brought to site:

    Development ConstraintsThe current design includes a water element of a zero-depth fountain; Options to build around it or incorporate it into the design are available

  • Phase ThreeThe Jetty

    LocationChicago Riverwalk, between Wells and Franklin Streets

    Uses

    Kiosks; The Arcade space in the Jetty is not architectur-ally enclosed and is intended to be used for educational programming (daytime) and leasable uses (evenings). Ideas for other programming are optional.

    Completion Date: December 2016

    Gross Leasable Area (SF)2,200 SF of Total Developable Arear 2,200 SF of interior area (see uses above for

    restrictions)

    Vertical Build-out Maximum (Floors)

    Main Riverwalk Level only (1)

    Back of House Back of House Location 2

    Boat Docking LF 0 Linear Feet

    Other Delivery OptionsOff Peak Truck delivery on Upper Wacker Drive (12am 6am)

    UtilitiesElectrical, water, sanitary and storm drainage utility, gas infrastructure available and brought to site: Actual connections will be responsibility of Developer

    Development ConstraintsA development plan that deviates from the suggested use would have to have significant economic benefit

    49

  • Phase ThreeRoom 6

    50

    LocationChicago Riverwalk, between Franklin and Lake Streets

    Uses Retail, Restaurant, Event space, conference space, etc.

    Completion Date: December 2016

    Gross Leasable Area (SF)Sea wall will be built out 50 feet creating a 22,000 SF footprint with option to build multi-story.

    Vertical Build-out Maximum (Floors)

    Main Riverwalk Level and multi-story development (5)

    Back of House Back of House Location 2 / TBD

    Boat Docking LF 0 Linear Feet

    Other Delivery OptionsOff Peak Truck delivery on Upper Wacker Drive (12am 6am)

    UtilitiesElectrical, water, sanitary and storm drainage utility, gas infrastructure available and brought to site: Actual connections will be responsibility of Developer

    Development Constraints N/A

    SOM rendering 2009; For illustrative purposes only

  • Back of House Location #1

    51

    LOCATION 1Access to this location is from west bound Lower Wacker Drive.

    WEST ON LOWER WACKER, APPROACHING ACCESS POINT

    1

    LOADING AREA

    WEST ON LOWER WACKER, ACCESS POINT

    2

    4

    ENTRY TO LOADING AREA

    3

  • Back of House Location #2

    52

    LOCATION 2

    WEST ON LOWER WACKER, APPROACHING WEST ACCESS POINT

    EAST ACCESS POINT

    1

    WEST ON LOWER WACKER, WEST ACCESS POINT

    2

    4

    WEST ACCESS POINT

    3

  • Vertical Connection

    53

    VERTICAL CONNECTION - ADA ACCESS RAMPS BETWEEN RIVERWALK AND UPPER WACKER DRIVE

    ADA VERTICAL ACCESS POINTS ARE SHOWN AT 3 LOCATIONS. IN ADDITION, THERE ARE TWO SETS OF STAIRS PER BLOCK AT EACH BRIDGE.

    WACKER DRIVEVERTICAL

    CONNECTION

    VERTICALCONNECTION

    VERTICALCONNECTION

    N

  • Before and After

    54

    Pre-Construction 2013 Construction 2014 Complete 2015

  • Investment Structure and Overview

    The structure of the Partnership identified in the RFP issued is that Partners may propose a management agreement with incentive payments, a long term lease with an upfront payment, or an alternative structure that meets the Citys requirements for a long term partnership based on the project finance structure identified in the RFP. Respondents may propose an alternative structure that meets the project finance requirements of the Riverwalk.

    The Partner is responsible for the development of the commercial retail on the Riverwalk, management, programming, operations and maintenance of the entire Riverwalk.

    55

  • 56

    intentionally left blank

  • Cash Flow of Funds Structure

    57

    Retail & Concession

    Revenue

    Riverwalk Excess Funds

    Tour Boat, Sponsorship, Ad revenue

    TIFIADebt Service

  • Operating Structure

    58

    Group Roles/ Responsibilities

    City Council r Approval of Developer / Partner

    2FM

    r Asset management over Riverwalkr Annual capital budget for infrastructurer Sponsorship opportunitiesr Tenant approval for all spaces in the

    Riverwalk

    DCASE r Cultural event planning as part of larger cultural affairs

    CDOTr Construction managementr Existing tour boat docks and fee

    collection

    Finance r TIFIA Loan payment and TIFIA program overview

    Budget

    r Evaluates the efficiency the Riverwalk, and drives management reforms that enhance the financial condition and increase taxpayer value

    Friends of the River

    r Volunteer organization working to improve the health of the Chicago River system for the benefit of people and wildlife

    Developer/Partner

    r Develop commercial componentsr Operate and manage entire Riverwalkr Collect retail and concessions revenuer Annual capital budget for commercial

    components

    Fleet &Facility

    Management(2FM)

    City of Chicago City Council

    Friends ofthe River

    Developer

    Departmentof CulturalAffairs &

    Special Events(DCASE)

    DepartmentTransportation

    (CDOT)

    Finance/Budget

  • This Investment Memo was compiled from the following sources: Hunden Partners, World Business Chicago, Bureau of Labor Statistics, World Bank, Moodys Analytics, Choose Chicago, Innovata, Chicago Department of Aviation, C2ER Cost of Living Index, Chicago River Corridor Development Plan, Magellan Development Group, Hines, Related, BuiltInChicago.com, Crains Chicago Business, CoStar, Oxford Capital Group, Chicago Sister Cities International.

  • Please visit http://www.cityofchicago.org/city/en/depts/dps/provdrs/contract/svcs/current_bid_opportunities.html Reference Bid Specification number 126330, Requisition number 92533.

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