Fact Sheet Evanston and Brinshore

BRINSHORE FACT SHEET

The City of Evanston received a Neighborhood Stabilization Program grant (NSP2) from the U.S. Department of Housing and Development for $18,150,000.00 to purchase and rehabilitate 100 foreclosed houses and to sell 50 of them at an affordable price and rent 50 for an affordable price.

The City of Evanston signed this agreement with Brinshore Development, LLC located in Northbrook to manage the NSP2 Program Grant.

1) Brinshore has been given $8,550,000.00 to buy 45 single family units, 25 condominiums and 30 2 to 3 flat buildings. Brinshore’s subsidiary BrinNSP will own all of these 100 properties.

2) Brinshore has $11,000,000.00 to rehabilitate these 100 properties. Brinshore’s subsidiary BCM, LLC will be the General Contractor and receive fees of 14.0% or $1,540,000.00.

3) Brinshore has been asked to award 25.0% or $2,750,000.00 to Evanston-based, Hispanic-owned, women-owned and Black contractors. This would leave $6,710,000.00 that could be awarded to other contractors.

4) Brinshore will sell 50 units for an estimated $100,000.00. Brinshore’s subsidiary, RJS Real Estate Services, Inc. is the listing agent and will receive fees of approximately 6.0% or $300,000.00.

5) Brinshore will rent 50 units for 15 years. Brinshore’s subsidiary, RJS Real Estate Services, Inc. will be paid $40.00 each month for each unit or $2,000.00 per month for 15 years for a total of $360,000.00.

6) Brinshore will be paid a developer’s fee of $1,961,000.00.  

                      WE WANT FAIR SHARE

The City Council of Evanston is not using the $18,150,000.00 HUD Neighborhood Sustainability Program Grant effectively to sustain the community. The original intent of the Congress is to increase the economic viability of these communities.

The fact that Brinshore, LLC and all of its subsidiaries are not an Evanston-based businesses means that those Evanston-based companies that have similar expertise in the area of affordable housing development, including the community housing development organizations (CHDOs) that have affordable using as their sole mission are being totally excluded from sharing in the NSP2 Program.

Unless there is shared ownership and the use of local, minority and women owned general contractors, real estate professionals in every phase of the NSP2 Program, the residents of the Fifth(95% Black) and Eighth(50% Black) Wards are being exploited by Brinshore Development, LLC and the City of Evanston using federal funds.  

The City Council of Evanston has negotiated an arrangement that provides substantial largess to a firm that is not located in Evanston; it is located in Northbrook, Illinois. The NSP2 Program as presently agreed to by the City Council has a negative effect upon the entire Evanston business community. All Evanstonians should join with the Evanston Minority Business Consortium in demanding a Fair Share of the NSP2 funds from the Evanston City Council and Brinshore Development, LLC.