Community Based Development in Rock Island, IL

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Dan Carmody
President
Renaissance Rock Island

Community Based Development in Rock Island, IL
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Reinventing One Block Twenty Different
Projects 11 million invested
The process begins with the decision of a
property owner to donate a white elephant
structure to a local not-for-profit
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501 (c) 3 Status allowed tax benefits to exceed
probable cash sale proceeds.
Patience can be a virtue
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Splitting the parcel, the former annex became
offices of Renaissance Rock Island.
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While the main building becomes 28 rental
residences and 8,000 square feet of commercial
space.
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Mixed Income Housing
40 Market Rate / 60 Income Restricted
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First Mortgage 1,700,000 Risk Sharing
50/50 insured by IHDA USHUD Funded by the
AFL-CIO Second Mortgage
750,000 Funded by IHDA Third Mortgage
275,320 Funded by the City of Rock
Island Equity 3,308,870 Historic
433,210 Affordable
2,758,466 Deferred Dev. Fee
117,194 Grants
272,000 City Façade 30,000 State Energy
68,000 AHP 175,000 Total
6,307,190 Other 15 year property tax negotiated
schedule
RRI partners with a for-profit affordable housing
developer and contributes another building to get
the project to 52 units.
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Community-based developer takes back a 30 year,
1 per year lease on commercial space
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Community-based developer has the option to
maximize rental income and/or to incubate desired
businesses.
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Meanwhile, Two doors down the block this high
end retailer suddenly. . .
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Catches fire and one significant structure is
damaged beyond repair. . .
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. . .and buildings on either side suffer severe
water and smoke damage prompting the property
owner to keep his insurance check and gives us
the buildings.
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The community based developer(CBD) prepared the
mid-block site and offered it for sale at very
low cost.
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Site sold to local businesses that construct the
Paddock Building.
Bowlby Building
Bailey Building
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Bowlby Building bought to protect investment,
sold to a café/bed breakfast developer,
repurchased because of inability to provide
shared upstairs access, and finally developed as
a three-unit, condo project
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Café Noire, Cup of Jo, E Js Euro Café . . . be
prepared for failure.
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The Bailey Building
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Be prepared to be flexible. First leased at no
cost to a Glass Studio that did the renovation,
then at low-cost to a specialty cinema
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The only building not purchased at some point by
the community based developer. The owner
participates in the Façade Improvement Program
(twice) and original owner sells to employee
using the Citys RLF.
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At the other end of the block an icon passes from
the scene. The CBD purchases three buildings that
had been a heavy metal night club, a massage
parlor, and an adult cabaret.
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The corner lot was sold at cost to a local
insurance company for construction of a corporate
training center.
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When they decide not to build the training
center, we repurchase the site and develop a nine
unit residential, two unit commercial condo
project on the corner.
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Design stolen from a Charlotte NC
architect-developer
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Parking was secured by a long term lease of a lot
across the alley to the rear of the buildings.
Note the utilization of the lot before work
began on the block.
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Lot was resurfaced and landscaped
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Culling the herd. Keep the best and demo the rest.
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11 Million Transformation

• 28 rental residences
• 11 ownership residences
• 32,000 square feet of new commercial space
• 19,000 square feet of renovated commercial space

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Project List

• Paddock Building
• Goldman Lofts
• Goldman Commercial Space
• Renaissance Rock Island Offices
• Café Noire
• Bowlby Condos
• Clipper Condos
• Glass Impact
• Brew View
• Parking Lot Improvements
• Panther Façade
• Panther Sale of Business
• Lewarne Façade
• Subway
• Midwest Writing Center
• Gallery West
• Cup of Jo
• E Js Euro Café
• Greenpath Financial

3,500,000 3,000,000 300,000 125,000
350,000 360,000 2,000,000 75,000
125,000 50,000 20,000 150,000
10,000 200,000 10,000 10,000
75,000 75,000 25,000 5,000
Total Invested
11,465,000
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Three affiliated not-for-profits focused on one
community. DARI is a membership group composed
of CEOs of larger local companies. GROWTH is a
neighborhood regeneration collaboration between
the City and DARI. The District is an
entrepreneurial merchants group that markets
downtown.
Renaissance Rock Island
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For further information contact Dan Carmody
dan_at_teamrockisland.com