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Home My WebLink About6.3 Motion to authorize the Village Manager to execute a contract with SB Friedman for additional consultant assistance to update TIF eligibility research and analysis in an amount not to exceed $9,175.Mr�GauC �'d'+rt;�iect Subject Motion •authorize execute a contract :B.Friedman• additional consultant assistance to update TIF eligibility research and analysis in an amount no1 •exceed Meeting Fiscal Impact Dollar Amount Budget Source Category Type Information December 14, 2021 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - true $9,175 Admin Professional Services Consent 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 TIF analysis related to feasibility, as well as evaluation of development pro -formas and requests for Village assistance. In December 2020, the Village Board adopted an amendment to the 2009 South Mount Prospect sub -area plan, commonly referred to as the Connect South Mount Prospect: 2020 Sub -Area Plan Update. A key implementation recommendation in this plan is to consider economic development incentives which encourage development or redevelopment in the south Mount Prospect Area. In addition, the "Connect South Mount Prospect Plan: Implementation" is a High Priority in the Village's 2021-2022 Strategic Plan, with an Activity Milestone of ""Identify and evaluate potential development incentives, including TIF". This milestone timeline was set for December 2021. In order to accomplish the goals above, the Village Board approved a contract at 1 their October 5th meeting to retain SB Friedman Development Advisors (SBF) to provide tax increment financing (TIF) consulting services, to assist the Village in evaluating the potential for a TIF district in the south Mount Prospect area. This study is the first step in determining if a TIF district is feasible; it would include significant data collection ("Eligibility Reconnaissance Study") to ensure that any parcel proposed to be included in a TIF boundary meet the legal criteria to be included. SBF will also complete fieldwork, analyze EAV and other eligibility factors, and summarize their findings for staff and Board review. Should the report and analysis by SBF recommend TIF an appropriate economic development incentive in the study area, they will also continue to work with the Village on the next steps to creating the district, such as legal notification and public presentations. The original contract was approved with a not to exceed amount of $33,900. As staff has proceeded with the review of the proposed south side TIF, it was determined that it may benefit the Village to increase the boundaries of the TIF by including the Kohl's shopping center, the RexPlex and Kopp Park and other contiguous properties. In order to fully research and analyze those properties, the proposed additional authorization of services is necessary. A complete scope of work, which provides hourly rates for various SBF staff that would be involved in this review, as well as a fee schedule, is attached. This support from SBF is necessary to have a thorough third -party analysis for this key economic development incentive. Their services protect the Village interests while moving this Strategic Plan item forward efficiently and effectively to completion. They have significant experience in representing communities throughout the country on similar projects and are well recommended. SBF completed the Prospect and Main TIF analysis for the Village in 2017. Staff has reviewed the proposal and recommends entering into this contract for additional services with SB Friedman Development Advisors, to provide tax increment financing consulting services in an amount not to exceed $9,175. Alternatives 1. Allow the Village Manager to enter into a contract with SB Friedman 2 Development Advisors for additional consultant assistance to update TIF eligibility research and analysis in an amount not to exceed $9,175. 2. Action at the discretion of the Village Board. Staff Recommendation Staff recommends entering into this contract with SB Friedman Development Advisors for additional consultant assistance to update TIF eligibility research and analysis in an amount not to exceed $9,175. ATTACHMENTS: Mt Prospect TIF Additional Services 2021-12-07v2.pdf KI KI �� III�IIII°'SII '4 I CS STRATEGY FINANCE IMPLEMENTATION December 7, 2021 Mr. Michael Cassady Village Manager Village of Mount Prospect 50 S. Emerson Street Mt. Prospect, IL 60056 South TIF Eligibility Study and Designation Support— Request for Additional Authorization to Update Eligibility Research & Analyses Dear Mr. Cassady: SB Friedman Development Advisors ("SB Friedman") presents this letter for additional services to the Village of Mount Prospect (the "Village") to provide continued tax increment financing (TIF) consulting services for a potential TIF district ("Mt. Prospect South TIF"). This letter (the "Additional Services Authorization") serves as an additional authorization to the Village of Mount Prospect TIF Designation engagement letter (the "Engagement Letter") dated September 28, 2021. The Engagement Letter contemplated conducting eligibility analyses and preparation of Mount Prospect South TIF. Our field research and eligibility analyses have been completed per the Engagement Letter. However, per our recent discussion, the Village desires to expand the proposed TIF district boundary to include an additional 17 parcels (the "Expansion Area"), as shown in Map 1 below. As you may recall, we completed our initial fieldwork several weeks ago and have since began documentation of our eligibility findings. To expand the proposed South TIF boundary, we need to conduct additional fieldwork for the Expansion Area. Once we refresh our eligibility research and analyses we will incorporate the results into a revised TIF Eligibility Study and Plan. Furthermore, we estimate that with this expansion there will be approximately 6 residential units in the proposed TIF district. As set forth in the Act, if a redevelopment plan for a redevelopment project area would result in the displacement of residents from 10 or more inhabited residential units, or if the redevelopment project area contains 75 or more inhabited residential units and a municipality is unable to certify that no displacement will occur, the municipality must prepare a housing impact study. It is our understanding that the Village intends to certify that no displacement will occur, thus a housing impact study is not needed. We will then proceed with the public notice and approval process, as contemplated in the Engagement Letter. This Additional Services Authorization letter outlines our proposed scope of services, timeframe and fees. SB Friedman Deveolljrriei nt AdlJsors 221 III 641e S> si. ki 8,')0 2.Ihneago IIII 1,0601 1112 4N 0-10 ire-dffi ur UM 4 Village of Mount Prospect / Mount Prospect South TIF — Additional Services Map 1. Study Area and Expansion Area Source: Village of Mount Prospect, Esri, Cook County, SB Friedman SIB 1I""Hcdrna in IDr^nrralliolpirneint Advusoirs 5 Village of Mount Prospect / Mount Prospect South TIF - Additional Services Cqpe of Services Our proposed scope of services and work steps for each phase are as follows: 1) Conduct Fieldwork We will conduct new field research for the Expansion Area to document field -observable eligibility factors. We anticipate a half day of field research for two staff members. 2) Analyze EAV Growth We will obtain and review the most recent final 2019 EAV data from Cook County. We will analyze the growth in EAV over the past six years (five year-to-year periods) and compare Study Area growth to Village growth and Consumer Price Index growth over those periods. 3) Analyze Additional Eligibility Factors/Required Findings and Tests We will coordinate with various Village departments, such as Public Works, to obtain needed documentation regarding presence of utilities and recent building permits. Based on our field research, review of recent permits and other data, we will reassess the presence and distribution of factors to establish eligibility and to meet the "but for..." and "lack of growth through private investment" requirements, as outlined in the Act. The revised eligibility findings and boundaries will be documented in a series of maps for the Study Area. 4) Revise All Maps We will edit all maps reflect our updated analyses and findings. We will then continue work for Phases 2, 3, and 4, per the Engagement Letter IIL.. iii in i�� mf ra in ie i,rr,iclIII Based on the scope of the work outlined herein and our experience with similar projects, we estimate it will take approximately 45 days the approval of this letter to revise and complete the TIF eligibility analyses and incorporate it into a draft TIF eligibility study and redevelopment plan report. Professional fees for our services will be based on the time required at the billing rates of the SB Friedman personnel assigned to the project. The scope of the engagement and our experience with similar services indicate that our professional fees and expenses will total $9,175, as shown in the detailed budget below. III', 1F:iHedirna in IDcvrallln 1pirneint Advusoirs 6 Village of Mount Prospect / Mount Prospect South TIF — Additional Services DETAILED BUDGET CC IIII panic IIIC°�iirocedUiire By the execution of this Additional Authorization, the engagement is hereby extended, allowing SB Friedman to incur up to an additional $9,175 in fees. All other terms of the Engagement Letter remain unchanged. Please sign below to indicate your authorization for us to proceed. We appreciate the opportunity to continue to assist the Village of Mount Prospect. Sincerely, Geoffrey Dickinson, AICP Senior Vice President Accepted: Signature Date Name Title SI111114 aGer:Nmain ID(nicIIIolpirneintAdvisors f; Fr Caitlin Johnson, AICP Project Manager Senior Associate Vice Project Person: President Manager Associate Special TIF Project Rates Rate: $ 255 $ 190 $ 160 Additional Services Conduct Fieldwork $ 3,440 8 12 Analyze EAV Growth $ 510 1 2 Analyze Additional Eligibity Factors/Required Tests and Findings $ 2,930 2 6 8 Revise All Maps $ 2,295 1 4 8 Subtotal Hours for Additional Services 52 3 19 30 Subtotal Dollars for Additional Services $9,175.00 $765.00 $3,610.00 $4,800.00 CC IIII panic IIIC°�iirocedUiire By the execution of this Additional Authorization, the engagement is hereby extended, allowing SB Friedman to incur up to an additional $9,175 in fees. All other terms of the Engagement Letter remain unchanged. Please sign below to indicate your authorization for us to proceed. We appreciate the opportunity to continue to assist the Village of Mount Prospect. Sincerely, Geoffrey Dickinson, AICP Senior Vice President Accepted: Signature Date Name Title SI111114 aGer:Nmain ID(nicIIIolpirneintAdvisors f; Fr Caitlin Johnson, AICP Project Manager