RHM Elkhart Concord Mall Redevelopment Project : simplebooklet.com

AboutConcord MallThe Concord Mall property islocated in Elkhart Indiana onSouth Main Street (US 33) withthe well-traveled US 20 bypassjust to the north of the propertyproviding access to the greaterElkhart-South Bend regionalmarket. The 80-acre property opened in1972 and is currently anchored bya Hobby Lobby and JCPenney’s.Like many second-tier enclosedmalls, it is a failing retail property.Its anchor department store, aCarson Pierre Scott has beenclosed for several years.The mall property is currentlyowned by a group of Californiainvestors. The investors enteredinto a contract sale in early 2020with Ton Real Estate InvestmentsLLC who failed to comply withthe contract’s conditions. Theproperty was recently returned tothe California group followinglitigation. RHM Development LLC is seeking acash investor to finance $4,000,000with a favorable return over threeyears. RHM will serve as the masterdeveloper, building the master plandesign in collaboration withpartnering developers through aprivate-public partnership. RHM willbe responsible for all steps includingpublic sector engagement, zoning,parceling and selling of land todevelopers, developer agreements,and implementation to complete theagreed mixed-use plan design.RHM DEVELOPMENT LLC

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RHM Development LLC (RHM) is comprised of an experienced teamof planning, development, and community leaders with a broadportfolio spanning over decades. The team has completed projectswhich have had impacts in Elkhart and communities across thecountry. Their bios can be found at the conclusion of this document.RHM believes the Concord Mall property is a redevelopmentopportunity. Its location and significant profile in the Elkhart-SouthBend marketplace position it for a number of potential market uses,including residential, community retail, industrial services,technology development, hospitality, and active recreation. The factthat the property has moved towards a “dead mall” designation, hascity leadership’s attention. There is interest on the public sector’spart to engage in a strong public-private partnership to advance thisproperty.The current California investors wish to sell the property and theyhave an asking price of $6,500,000. The investors appear motivatedto sell and will likely negotiate a more realistic value if a quick closing occurs. RHM partners believe this is a redevelopment initiative and the value likely falls into the $2.5-$4 million range. RHM's Vision for ConcordMall's Redevelopment RHM DEVELOPMENT LLC

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OpportunityOverviewTwo possibleapproachesPrimaryopportunitiesThe market shed has over200,000 populationAdjacency to US 20 Bypassprovides Elkhart-South Bendregional accessAdjacent Concord schools andcommercial district generatesignificant daily customer andvisitor tripsProperty condition and recentfailed property disposition effortsindicate a discounted valueOur anchor tenant demonstratesthe unique potential to attractcomplementary uses andmarketsRisk managed via structuring ofa strong public-privatepartnershipSub-divide property into four orfive distinct land uses. Preparethe site to accommodate theland uses (including demolition,entitlement, updated utilities,and infrastructure). Then, selldevelopment-ready sites to thedevelopers. A hybrid approach. Prepare sitesfor future development, yet alsoselect one or more of the futureuses to develop or partner withselected developers. This maymake the most sense with theresidential development that isenvisioned as a new use on thesite – up to 500 units. 1.2.RHM DEVELOPMENT LLC

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Redevelopment Next StepsRHM has an anchor “technology-based” tenant that is interested in theproperty. The tenant is willing to consider purchasing the formerCarson Pirie Scott retail box and possibly additional connected space. Additionally, it is felt that in order to manage risk and realize a healthyROI, a strong public-private partnership is critical. Establishing anddocumenting the partnership starting with the City of Elkhart andpossibly the State of Indiana would be the first priority.It will also be important to fully understand the existing conditions onthe site. Building conditions needed upgrades to utilities andinfrastructure, and below the surface, issues will need to be assessed. Itis estimated that there is $2-3,000,000 in deferred maintenance that isunresolved with no near-term intentions to improve the site. Finally, future land valuations need to be determined to ensure thatthe acquisition and site preparation investments will not dilute thereturns to be generated from land disposition and developmentrevenues. RHM DEVELOPMENT LLC

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Redevelopment Next StepsNational and local economic conditionsSite analysis – existing conditionsStrength of anticipated public-private partnershipSecuring potential technology-based anchorDetermining future land valuationsVerifying recreation and hospitality land-usesReview existing retail leases – terms, conditions, etc.Review title, survey, site encumbrances, agreementsEngage city regarding potential redevelopment direction, identify elementsof private-public partnership, property entitlement processDocument potential commitment from the technology-based anchor,including terms, timing, property Determine developer interest in potential new land uses Conduct land valuation studyCreate a site redevelopment program and budgetPrimary threats include:Initial due diligence: The following represents the initial steps once a conditional letter of intent topurchase the property has been executed. The LOI is likely to require an earnestdeposit (estimated $50,000, refundable with conditions) allowing for a 90-daydue diligence period. We may be able to extend the due diligence period subjectto going hard on the initial earnest deposit and additional payment. Primary due diligence steps include:1.2.3.4.5.6.7.Assuming significant progress is made on these items it is likely a request for anadditional 90-day period will be made. The seller should grant if the buyer iswilling to go hard on up to a $200,000 payment. RHM is looking for an investor to provide up to $4,000,000 in the acquisition andpre-development funds. The first 90-day due diligence period will include a$50,000 refundable earnest deposit (subject to agreed-upon conditions) and upto $300,000 in expenses related to due diligence (budget to be presented prior todisbursement).RHM DEVELOPMENT LLC

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MarketAssessmentSee the attached market study. Based on this study and furtheranalysis conducted by RHM, it isour opinion that the propertyshould be redeveloped into amixed-use property includingsome level of retail with anemphasis on residential. Thepotential anchor tenant in theCarson Pirie Scott building willlikely attract other businesses tothe site as well. Perhaps the most significantthreat is the current state of theeconomy. Higher interest ratesand a slowdown in housing startscould impact developmentvelocity on the site. In addition,the Elkhart economy is morevolatile than most given itsdependence on the RV industry.This industry has had severalrecord-breaking years. There issome indication that RV sales areslowing down. Elkhart during thedown cycles in the RV industrywill lead the nation inunemployment and downwardeconomic indicators. RHM DEVELOPMENT LLC

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Herman RenfroHerman joined the Simon Property Group as a mallmanager, He was promoted several times, first as a RegionalManager managing mall managers, then assistant vicepresident responsible for all Simon mall expansions andrenovations, then Vice President of Development, andeventually to Senior Vice President of Development. RHM DEVELOPMENT LLC Bachelor of Arts Degree in Political ScienceMinor and graduate coursework in Speech and Public AddressDuring his seventeen-plus years with the Simon Property Group, his signature project was the Circle CentreMall in downtown Indianapolis, a $332 million public-private partnership. His responsibilities included securingand documenting the financing which included $187 million from the City of Indianapolis, $25 million from theState of Indiana, $3.5 million from a UDAG loan, $65 million from 20 companies headquartered in Indianapolis,and a $55 million first mortgage. He also managed the development team that included design, engineering,construction, leasing, marketing, and property management.In September of 1997. Herman resigned from the Simon Property group and started his own real estatecompany. His completed projects include the $55 million Wabash Landing mixed-use project in WestLafayette, Indiana adjacent to Purdue University. Wabash Landing included 110,000 square feet of retail,structured parking, a nine-screen cinema, restaurants including Panera Bread & Starbucks, and a 104-roomHilton Garden Inn. He also developed a retail project in downtown Hammond, Indiana that included a Strack‘N Van Til grocery store, Walgreens, and a retail building. In downtown Columbus, Indiana, Herman bought thetwenty-five-year-old Columbus Commons Mall. His team worked with architects and city planners to de-mallthe building and develop street front retail, two parking garages, an Indigo Hotel, and a 100,000-square-footoffice building housing Cummins Engine executives. Following the financial collapse of 2008, Herman received a temporary appointment with the FDIC at the newTemporary Satellite Office in Jacksonville. Herman worked as a Settlement Manager, implementing thePurchase and Assumption Agreement between the FDIC and the assuming institutions that assumed theliabilities and bought the assets of the failed bank. Herman started at a G-13 level, was promoted to G-14 withina year, and then to CM-1, and managed three departments. In addition to the Settlements Department,Herman managed the Receivership and Oversight Department and the Termination Department. TheReceivership and Oversight Department worked to liquidate the assets of the receivership and satisfy theliabilities. Then, the Terminations Department worked to wind down the receivership. The mission of theTemporary Satellite Office in Jacksonville ended in April 2014. Herman & his wife, Sharon, stayed in Jacksonvilleuntil July of 2019 when they moved to Fishers, Indiana.Education: Pittsburg State University, Pittsburg, KansasMilitary Service: Herman served in Vietnam as an E-6 Staff Sergeant with Company C, 4th /23rd battalionmechanized of the 25th Infantry Division. Among his awards were two purple hearts and two bronze stars witha “V” cluster for valor under fire. Herman has a 30% disabled rating by the VA.

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Mike HigbeeMike is at heart a community builder. He does not shrinkfrom solving complex community development challenges.In fact, he has made a career of it. From helping to rebuilddowntown Indianapolis to constructing new affordable andmarket rate infill homes in low-income blightedneighborhoods. Mike is a pioneer in urban redevelopment.He relishes using his creative and innovative insights to solvechallenging development dilemmas. RHM DEVELOPMENT LLCHe has enjoyed a 40-year career that has involved playing several roles in the community and economicdevelopment arenas. His primary focus has been on development and redevelopment, implementation, andpublic-private partnerships (P3). He has helped create plans and developments that benefit urban and ruralcommunities in the United States and abroad. Mike served as the Director of Metropolitan Development for the City of Indianapolis from 1985 to 1991, wherehe oversaw the City’s economic development and affordable housing initiatives. Premiere projects he led forthe City were the Circle Centre Mall development, the Lower Canal Improvement Project, Pan Am Plaza, andnegotiations for the United Airlines Maintenance Facility at the Indianapolis International Airport. Mike founded and served as President of Development Concepts, Inc., a development planning, and real estateconsulting firm from 1991-2018. His company worked across the country planning and in many casesimplementing downtown and neighborhood masterplans. He also partnered in large-scale developmentsincluding an in-fill housing project and the redevelopment of the 150-acre historic Central State Hospital site. Most recently he led an Economic Development Team at Thomas P. Miller and Associates building a nationalpractice in housing, opportunity zones, and economic recovery and resiliency. Mike has served as a Faculty Member for the Rose Center for Public Leadership and is often invited toparticipate in or chair panels in cities across the country on behalf of the Urban Land Institute Advisory ServicesProgram. Mike recently founded OBE Advisors LLC. OBE Advisors will partner with public and private sector leaders toidentify investments and/or projects that enhance the economic opportunities and quality of life assets forcommunity residents and businesses.

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Shelley MooreSince 1999, Shelley has provided growth planning services toover 200 organizations including businesses, nonprofits, andgovernment entities that have achieved significant economicimpact and growth with the assistance of her team’s services.Services include strategic growth planning, private-publicpartnership, and team formation, project facilitation andleadership, community and neighborhood planning anddevelopment, branding and marketing communications, salesand fundraising management, and team performancemanagement. RHM DEVELOPMENT LLCShelley’s passion is aligning leaders with their affiliated communities to execute intentional growth strategiesthat create places where people want to thrive. In that space, she is simply known for providing leadership toimplement and achieve project success. For the past ten years, Shelley’s work has focused on community development projects including branding,facilitation of community planning, facilitating private-public partnerships, and leading implementationinitiatives for Northern Indiana communities. These initiatives represent large and smaller-scale development projects for counties, downtowns, anddistressed neighborhoods. Projects include Elkhart Health and Aquatics, the Elkhart River District, and variousElkhart 2040 initiatives for neighborhood redevelopment, Industry 4.0 talent development, opportunity zones -and other community development initiatives in cities such as Plymouth, Middlebury, and South Bend. Thecentral elements she organizes to plan, fund, and implement projects are market needs analysis, the formationof private-public partnerships, and transparent and consistent communication to stakeholders. Shelley has marketing, advertising, and international business degrees from The University of Akron andKansai Gaidai University in Osaka, Japan. Certifications and awards include Copper Circle Kolbe CertifiedConsultant, certified Natural Step facilitator for sustainability planning, 2022 Best of Elkhart in ManagementConsulting Services, 2020 Kolbe Professional Award recipient, 2019 Key to the City of Elkhart by Mayor TimothyNeese recipient, the 2017 Woman of the Year for the Elkhart Greater Chamber, Addy Award recipient, NAPWWoman of The Year, Key Business Partner of Specialized Staffing Solutions, and a 2007 Michiana Forty Under40 recipient. Shelley has been featured in various media outlets regarding her leadership, team, and communitydevelopment work. Shelley is the owner and founder of Insight Strategic Concepts Inc., BLOOM SuccessSolutions LLC, and ISC Community Development LLC.

RHM Elkhart Concord Mall Redevelopment Project

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