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Home My WebLink About6.4 MOTION AUTHORIZING EXECUTION OF AN AGREEMENT TO HIRE SB FRIEDMAN DEVELOPMENT ADVISORS FOR PROFESSIONAL SERVICES RELATING TO THE REVIEW OF THE REDEVELOPMENT PROPOSALS FOR THE FORMER POLICE/FIRE BUILDING AT 112 E. NORTHWEST HIGHWAY IN AN AMOUNT NOT TO Et�.f)AAI1C 1�d'+rn�iect Item Cover Page Subject MOTION AUTHORIZING EXECUTION AGREEMENT TO HIRE SB FRIEDMAN DEVELOPMENT ADVISORS FOR PROFESSIONAL SERVICES RELATING TO THE REVIEW THE REDEVELOPMENT PROPOSALS POLICE/FIRE BUILDING112 E. NORTHWEST HIGHWAY IN AN AMOUNT NOT TO EXCEED $30,000. Meeting June 1, 2021 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - Fiscal Impact true Dollar Amount Not to exceed $30,000 Budget Source Prospect and Main TIF fund Category CONSENT AGENDA Type Consent Information SB Friedman Development Advisors (SBF) has been the Village's TIF and real estate development consultant since 2016. Retaining a highly experienced development consultant brings independence to analysis and evaluation of development pro -formas and requests for Village assistance. SBF has submitted a scope of work and fee schedule to provide professional support to the Village as it evaluates the submissions for the Request for Proposals for the former Police/Fire building located at 112 E. Northwest Highway in the downtown district. SBF has provided similar services for other downtown projects including Park Terrace, 20 West, 10 N. Main, Maple Street Lofts and Prospect Place over the past few years and have provided the Village with invaluable analyses of these projects. SBF would support the Village as we evaluate the proposals, select a preferred developer and negotiate the terms of a potential public-private partnership with the preferred developer. Their services protect the Village interests while moving the project forward efficiently and effectively to completion. They have significant experience in representing communities throughout the country on similar 1 projects and are well recommended. SBF's attached scope of work provides hourly rates for various staff that would be involved in this review and has a not to exceed cost of $30,000. Staff has reviewed the proposal and recommends entering into this contract for the review of the Request for Proposals for the former Police/Fire building. Alternatives 1. Authorize the Village Manager to execute an agreement to retain SB Friedman Development Advisors for professional services related to the review of the redevelopment proposals for the former Police/Fire building at 112 E. Northwest Highway in an amount not to exceed $30,000. 2. Discretion of the Village Board. Staff Recommendation Staff recommends that the Village Board authorize the execution of an agreement to hire SB Friedman Development Advisors for professional services related to the review of the redevelopment proposals for the former Police/Fire building at 112 E. Northwest Highway in an amount not to exceed $30,000. ATTACHMENTS: SBF Mt. Prospect - Police and Fire RFP Support 05021021.pdf 2 11I��III`A Nil May 21, 2021 Mr. Michael Cassady Village Manager Village of Mount Prospect 50 S. Emerson Street Mt. Prospect, IL 60056 Re: Hourly Services Request for Fee Authorization — Police/Fire Site RFP Support Dear Mike: SB Friedman Development Advisors ("SB Friedman") appreciates the opportunity to continue to assist the Village of Mount Prospect (the "Village") in selecting and negotiating with a Preferred Developer for the redevelopment of the Downtown Police/Fire Station site. In response to a recent RFP, he Village received three proposals. Our role will be to support the Village as it evaluates these proposals, selects a Preferred Developer, and negotiates the terms of a potential public-private partnership with the Preferred Developer. Our goal is to work to protect Village interests while helping the project move efficiently and effectively to completion. u wqpie of allrlll< Key areas where we can be of assistance include: • Reviewing and evaluating submittals to help determine the Preferred Developer. Steps could include: o Summarizing key business terms especially regarding Village assistance o Evaluating land price o Evaluating developer capacity and experience o Attending presentations by the shortlisted teams • Once a Preferred developer has been selected we can support the Village by conducting detailed analyses of the preferred project such as: o Evaluating TIF eligible costs and projected incremental property taxes o Benchmarking operating pro forma rent/income and expense assumptions, including phasing and absorption, against local market data and comparable projects; o Reviewing project financing sources and terms, and evaluating the maximization of debt, presence of a reasonable amount of equity, and adherence to commonly accepted market terms; • Memo writing • Term sheet negotiation support • Meetings, calls and presentations SB Friedman Dm^ mem oljimtint Advil c!iI'S 221 IN II nSj)lllln Y ,file, o ,','O C l,-licrlgo 11 11 60601 W 424 4?1-)0 3 W1111Iage of Mount Prospect / Ic /14 hire IRndovdolpurnoint Support 202°� IIII '111°°� &IIri We will work with you to define our work plan in ways that are most useful to Village staff and elected officials. We request an initial fee and expense authorization of $30,000. We will not exceed this amount without further authorization from you. Compensation for these services will be based on the time required at the current hourly rates of the personnel involved. For assignments of this type, the following current hourly rates apply: Senior Vice President $280 Vice President $240 Project Manager $235 Associate Project Manager $210 Associate $170 Research Associate $155 These rates will be in effect until December 31, 2021, at which time rates are subject to adjustment to reflect compensation changes and promotions of individuals. In addition to professional fees, we will invoice for such direct expenses as local travel and mileage, tolls, parking, data acquired specifically for this assignment, use of owned or licensed data bases, photocopying, long-distance telephone related to research, telecopy, messenger services, and similar direct expenses. Invoices will be rendered not more frequently than monthly and will be payable within 45 days. We will provide detailed information on the time expended as part of our invoices. Travel time will be charged to the extent that it exceeds the normal commuting time of the professional staff involved. In the event that the decision is made to discontinue our services for any reason, our compensation will be limited to time and expenses incurred to the date that you notify us of such decision. The attached "Limitations of Engagement" apply to this engagement. AIB 14'"'�u°1edirnain ID vdo14pirnvn't Adviisoirs 4 VGlllllIage of Mount IPirospect / Ic /14 hire IG»edevdalpurn ei nt Su.0 1ppoi"t 202 We appreciate the opportunity to continue to assist the Village. Please sign and return a copy of this letter to indicate your agreement to these terms. Sincerely, Geoff Dickinson, AICP Senior Vice President Accepted: f Printed Name Title Date SIB 14" Hedir nai nII"ua*vdllo14 it nei nt dvii oir.0 5 V61111iage of Mount Prospect / Ic /14 hire IRedoveialpurooint Support 202 LIMITATIONS OF ENGAGEMENT Our reports, tables and financial analyses will be based on estimates, assumptions and other information developed from research, knowledge of the industry, and meetings during which we will obtain certain information. The sources of information and bases of the estimates and assumptions will be stated in the report. Some assumptions inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will necessarily vary from those described in our report, and the variations may be material. The terms of this engagement are such that we have no obligation to revise the report to reflect events or conditions which occur subsequent to the date of the report. These events or conditions include, without limitation, economic growth trends, governmental actions, changes in assessment practices, changes in the TIF statute, interest rates, and other factors. However, we will be available to discuss the necessity for revision in view of changes in the economic or market factors affecting the proposed project. Our reports, tables and analyses will be intended solely for submission to the Village for informational purposes and for the purposes of selecting a developer. They should not be relied upon by any other person, firm or corporation, or for any other purposes. Neither the reports nor their contents, nor any reference to our Firm, may be included or quoted in any offering circular or registration statement, appraisal, sales brochure, prospectus, loan, or other agreement or document intended for use in obtaining funds from individual investors. SIB 14" Hedir nvinIf" eveio14 it nvint Advo oir.0 4 6