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HomeMy WebLinkAbout9.1 Motion to authorize the Village Manager to execute a contract with SB Friedman for consultant assistance for an amount not to exceed $49,850.�r�.flSillY b�W{M�;bCy;ti Item Cover Page Subject Motion to authorize the Village Manager to execute a contract with SB Friedman for consultant assistance for an amount not to exceed $49,850. Meeting Fiscal Impact (Y/N) Dollar Amount Budget Source Category Type Information Background: June 4, 2024 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD VILLAGE MANAGER'S REPORT Action Item The Village Board adopted an amendment to the 2009 South Mount Prospect sub -area plan in December 2020, commonly referred to as the Connect South Mount Prospect: 2020 Sub -Area Plan Update. Economic development incentives which would encourage development and redevelopment in the south Mount Prospect Area was a key implementation recommendation in this plan. The Village retained SB Friedman Development Advisors (SBF) to provide tax increment financing (TIF) consulting services and assist the Village in evaluating the potential for a TIF district in the south Mount Prospect area. SBF completed fieldwork, analyzed EAV, deterioration levels and other eligibility factors. SBF's analysis recommends TIF as an appropriate economic development incentive in the study area. A 505 acre TIF boundary was created based on the work done by SBF. The TIF consists of mostly industrial and commercial properties constructed in unincorporated Cook County prior to annexation by the Village. While progress has been made, this area suffers from poor infrastructure and aging businesses that have limited private investment. 2024 Update: Village staff are seeking to expand the South Mount Prospect TIF with the creation of three new subareas that would be contiguous to the current boundary. The attached memo submitted by SBF includes a map of the proposed areas. Descriptions of each subarea follow: • Subarea 1: This subarea is primarily comprised of the existing ComEd utility easement. A key proposal of the 2020 Plan was to evaluate and identify opportunities to expand use of the easement for additional amenities. The TIF would support this. There is also substation infrastructure here that could support future development in tandem with the TIF. Subarea 2: This subarea is primarily comprised of light industrial, office park, and distribution uses west of Elmhurst Road. Many parcels in this area were developed in unincorporated Cook County prior to annexation, and a TIF would allow the Village to bolster the area as an economic center and southern gateway to the Village. Subarea 3: This subarea is primarily comprised of legacy industrial development that originally occurred in unincorporated Cook County prior to annexation by the Village. The TIF would be used to support critical infrastructure improvements needed in the area to be annexed into the Village. Continuing the relationship with SB Friedman Development Advisors To accomplish the goals outlined above, the Village is seeking to retain SBF to provide TIF consulting services to assist the Village in evaluating the expansion of the existing South Mount Prospect TIF district. This study would include significant data collection ("Eligibility Studies") ensuring any parcel proposed for inclusion in the expanded TIF boundary meets the legal criteria for inclusion. SBF will also complete fieldwork, analyze EAV and other eligibility factors. Their findings will be summarized for staff and Board review. SBF will continue to work with the Village on next steps if the report and analysis recommend expanding the South Mount Prospect TIF as an appropriate economic development incentive in the study area. Next steps would include preparing a draft of the major amendment document, assembling legal notifications and giving public presentations. 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, which are 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 of 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 and continues providing ongoing staff support. Staff has reviewed the proposal and recommends entering into this contract with SB Friedman Development Advisors, to provide tax increment financing consulting services for an amount not to exceed $49,850. Discussion Alternatives 1. Allow the Village Manager to enter into a contract with SB Friedman Development Advisors, to provide tax increment financing consulting services in an amount not to exceed $49,850. 2. Action at the discretion of the Village Board. Staff Recommendation Staff recommends entering into this contract with SB Friedman Development Advisors, to provide tax increment financing consulting services in an amount not to exceed $49,850. Attachments SBF Mt Prospect - TIF Amendment Proposal 05-8-2024 May 8, 2024 Mr. Mike Cassady Village Manager Village of Mt. Prospect 50 S. Emerson Street Mt. Prospect, IL 60056 RE: Mt. Prospect — South Mt. Prospect RPA Amendment Support Dear Mr. Cassady, Pursuant to our recent discussions, SB Friedman Development Advisors, LLC (SB Friedman) is pleased to present this proposal to the Village of Mt. Prospect (the "Village") to provide tax increment financing ("TIF") consulting services for the South Mt. Prospect Redevelopment Project Area (RPA). It is our understanding that the Village is interested in potentially adding three areas (the "Added Areas") to the existing South Mt. Prospect TIF district (the "TIF District"). SB Friedman proposes to support the Village's effort to amend the boundary of the TIF District and the redevelopment plan. Under this scope of services, SB Friedman will work with Village staff to conduct a major amendment process. We have organized our scope of services for this assignment into four phases: 1) Conduct TIF Eligibility Studies 2) Revise Redevelopment Plan and Project Document 3) Prepare Mailing Lists and Support Notice Process 4) Support Public Review Process We will begin the engagement by conducting eligibility studies for each of the three Added Areas. Assuming the Added Areas are eligible, the amendment support process would include documentation of our findings in a formal Eligibility Report, preparation of the Redevelopment Plan and Project amendment document, and assisting the Village with the public deliberation process, including preparation of mailing lists. For budgeting purposes, we have assumed that a Housing Impact Study will not be required. SB Friedman has broad and deep experience in all aspects of TIF, such as: TIF district designation and amendment, including preparing housing impact studies; developing incremental property tax projections for TIF assistance requests and underwriting of various financing obligations; supporting the negotiation of term sheets and redevelopment agreements; and documenting and supporting TIF compliance activities. We are noted for our rigorous analyses of TIF eligibility, feasibility, and the market, fiscal, economic and related aspects of public-private development projects. 5E Friedman II ��p+�^J��Il a us^u t v��n a°�4, 11 11 Cx'12 4 4 �I�",�o /0 W II` acii;tan shreol ",iaitl ! /00 /:hk,ona IIL 6%0, Map 1: Added Areas ® Existing TIF Boundary Subarea 1 Subarea 2 Subarea 3 Sciqpie of Services ;% 1IMt, IIIPiro.°.?apen„t„ 111 11. / Soautllh IIAt. IPros14rect I11114" Anier idir°neint Su14"Glpooirt k J " 11111111111A u.0 o -w ue11 a, 11 rut Our proposed scope of services and work steps for each phase are as follows: PHASE 1: CONDUCT TIF ELIGIBILITY STUDIES 1) Conduct Project Kickoff Call We will conduct a kickoff call with the Village to: • Discuss the project scope and timeframe; • Confirm the Added Areas boundaries; • Review existing documents compiled by the Village, including the Village's first and current Comprehensive Plans, South Mt. Prospect RPA eligibility study and plan and any amendments and current zoning map; and • Identify additional key sources of data that we will need for our analysis. 2) Obtain and Examine Necessary Data We will pursue key data to determine whether the Added Areas qualify for inclusion in the TIF district, based on the criteria outlined in the TIF Act. To complete our Eligibility Studies, we will: • Obtain current GIS parcel shape files and/or existing base maps from the Village and/or Cook County, and prepare internal base maps; • Obtain and review building age data from Cook County; SIB Il;umk,xidurrmin DevdlioipiiTwi nt Adviisoirs, II..II.. 1IMt, Illr"u°a;uspen„t„ 111 11. / So utllh IIAt. Pu•os14rect I11114" Anieridirneint Su14"Glp oirt • Obtain and review five-year history of building permit data for the Added Areas from the Village and/or Cook County; • Obtain information about infrastructure age and condition from Village staff and others, as available; • Conduct fieldwork to document conditions in the Added Areas; • Prepare PIN list, and order and enter taxpayer data; • Analyze six-year history of equalized assessed values (EAV) for the Added Areas and Village; and • Enter, proof and map eligibility criteria, as required. 4) Analyze EAV Growth We will analyze the growth in EAV over the past six years (five year-to-year periods) and compare each of the Added Areas growth to Village growth and Consumer Price Index growth over those periods. 5) Analyze Additional Eligibility Factors/Required Findings and Tests Based on our research and other analyses, we will assess 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 eligibility findings will be documented in a series of maps for each of the Added Areas. If for any reason one or more of the Added Areas does not qualify for inclusion in the TIF District, we will meet with you to discuss potential strategies at that point. 6) Prepare Eligibility Study Summary We will prepare a summary documenting the findings of our eligibility research. 7) Conduct Call with Village We will conduct a call with the Village to discuss our findings and recommendations. PHASE 2: FINALIZE ELIGIBILITY RESEARCH AND PREPARE MAJOR AMENDMENT DOCUMENT 1) Prepare Maps of the Proposed Amended RPA A series of maps of the proposed amended RPA will be prepared for inclusion in the Redevelopment Plan and Project amendment document. These maps will include: the proposed amended boundary, documented eligibility factors, existing land use, and future land use. 2) Obtain and Proof Proposed Amended Boundary Legal Description We will engage and manage a licensed surveyor on the Village's behalf to amend the boundary legal description for the proposed amended RPA. If the Village prefers to work with a particular surveyor, we will engage with that company. Otherwise, we can use a surveyor with whom we have worked in the past. SIB III irk durrmim DevdlolpiiTwi nt Adviisoir , II..II.. 1 t..III r"u°a;nspe „III IL. / Soutlh I. Pu•os14rect I11114" nieridirneint Su1pIrmirt 3) Prepare Draft of Major Amendment Document We will prepare an amendment document for the proposed amended RPA. We will update sections as required as a result of changes in law, the addition of the Added Areas, best practices and Village direction. We anticipate first preparing a draft amendment to be distributed to and reviewed by the Village. Any revisions to the draft amendment document will be incorporated into the final amendment document, which will be filed with the Village Clerk at least 10 days prior to introduction to the Village Board. PHASE 3: PREPARE MAILING LISTS AND SUPPORT NOTICE PROCESS 1) Create Mailing Lists for Noticing The Act requires that municipalities make a good faith effort to provide notice of the availability of the Eligibility Report and Major Amendment and how to obtain the report by mail to all residential addresses within 750 feet of the boundary of the proposed amended RPA. We will prepare a map identifying this buffer area. On the day we conduct our eligibility fieldwork, we will do our best to verify mailing addresses within the buffer area. Additionally, we will prepare other mailing lists for noticing, as required by the Act. Our scope includes preparation of the following mailing lists: • Affected taxing bodies and Illinois Department of Commerce & Economic Opportunity • Taxpayers within the proposed amended RPA • Taxpayers of properties within the proposed amended RPA for which taxes were not paid in the prior year • Residential addresses within 750 feet of the proposed amended RPA The Village may elect to engage a mailing company for preparation and distribution of the mailings or to prepare the mailings using Village resources. 2) Support Notice and Approval Process We assume that the Village will print and prepare the mailings and publish required notices in local newspapers. We will coordinate with the Village to ensure all mailing addresses are provided in a timely fashion. We assume that the Village's legal counsel will establish and manage a timeline for mailings, meetings and noticing based on state law, the overall project timeline, newspaper publishing dates, and the Village Board meeting schedule. PHASE 4: SUPPORT PUBLIC REVIEW PROCESS We will prepare PowerPoint slides summarizing eligibility findings for the Added Areas and key changes included in the Major Amendment document. We assume that we will attend and present at two (2) meetings — the Joint Review Board meeting and the Public Hearing and that those meetings will be in person at Village Hall. SIB III umiin,:n rrmn Darard1olpiiTwint dvaisoir , II..II..0 IAt.. Illr"u°a;uspen„t„ IIIIL./ So utlh I. Pu•os14rect I11114" Anieridirneint Su14"Glpooirt III hrriefirarrie allru Based on the scope of the work outlined herein and our experience with similar projects, we estimate it will take approximately 30 to 45 days to complete the Eligibility Studies, 30 to 45 days to complete the Major Amendment document, and 90 to 120 days to complete the public approval process. However, we will work with you to meet any specific deadlines, where possible. 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 $49,850, as shown in the detailed budget. Phase 1: Conduct TIF Eligibility Studies $25,845 Phase 2: Prepare Major Amendment Document $12,990 Phase 3: Prepare Mailing Lists and Support Notice Process $4,975 Phase 4: Support Public Review Process $6,040 General Expenses $0 TOTAL SB FRIEDMAN FEES AND EXPENSES $49,850 Other expenses to be incurred directly by the Village: • Surveyor - Boundary Legal Description Amendment This fee estimate is based upon the detailed work steps and time budgets shown in the attached budget table. Actual billings will be based on time expended at the public sector hourly rates that are currently as follows: Senior Vice President $350 Vice President $290 Senior Project Manager $280 Project Manager $265 Associate Project Manager $245 Senior Associate $230 Associate $205 Research Associate $190 Travel, publications, maps, outside data, report reproduction, and other out-of-pocket expenses will be billed as incurred without mark-up. We anticipate that the Village will publish notices in the local paper and have not included an allowance for these costs. This fee estimate is subject to revision if the engagement entails more time than estimated due to problems that are encountered that could not reasonably have been foreseen at the commencement of the engagement or if the scope is changed. In this event, we will discuss the matter with you so that a mutually acceptable revision may be made. If the time spent on this engagement is substantially less than we have estimated, we will bill you a lesser amount. Additional meeting time and additional services, beyond what has been included in the budget, will be billed at the project rates outlined above. SIB III umiin,:durrmin DarardlolpiiTwi nt Adviisoir , II..II.. 1IMt, Illr"u°a;uspen„t„ 111 11. / So utllh IIAt. Pu•os14rect I11114" Anieridirneint Su14"Glpooirt Invoices will be rendered not more frequently than monthly as our work progresses for services and costs incurred. These invoices are payable within 30 days. If at any point the decision is made to discontinue our services, our fee will be based upon the actual time expended and out-of-pocket costs incurred to that date. We appreciate the opportunity to continue to assist the Village. To indicate your acceptance of this proposal, please sign and return it to us as authorization for us to proceed. Sincerely, Geoffrey Dickinson, AICP Senior Vice President SB Friedman Development Advisors, LLC Accepted: Signature Date Name Title SIB III irk durrmim DevdIojI4,)iiTwnt Adviisoir , II..II.. IVt, IIPiro:pect„ 111 11. / Soaut1h IP13t. Purzulirect. I'lllli"� Anieridir-noint Sullupo�irt DETAILED BUDGET SIE 14 iriodir nairr 11 tcv(,rlllolpir nci nt Advu isoirs, II. ILC Senior Vice Senior Person: President Associate Associate Hourly Public Sector Rates Rate: $ 350 $ 230 $ 205 Phase 1: Conduct TIF Eligibility Studies Conduct Project Kickoff Call 1 1 Comp Obtain/Examine Existing Reports/Data 2 4 8 Analyze EAV Growth 2 4 10 Fieldwork 8 12 Analyze Additional Eligibility Items 2 6 10 Prepare Eligibility Study Summary 4 8 24 Conduct Call with Village 1 1 1 Subtotal Hours for Phase 1 -Conduct Eligibility Recon Study 109 20 24 65 Subtotal Dollars for Phase 1 -Conduct Eligibility Recon Study $ 25,845 $ 7,000 $ 5,520 $ 13,325 Phase 2: Finalize Eligibility Research and Prepare Major Amendment Document Prepare Maps of the Amended RPA 1 2 8 Obtain and Proof Amended Boundary Legal Description 1 2 2 Prepare Draft of Major Amendment Document 6 10 24 Subtotal Hours for Phase 2 -Prepare Redevelopment Plan 56 8 14 34 Subtotal Dollars for Phase 2 -Prepare Redevelopment Plan $ 12,990 $ 2,800 $ 3,220 $ 6,970 Phase 3: Prepare Mailing Lists and Support Notice Process Create Mailing Lists for Noticing A. Prepare Buffer Map 1 2 B. Conduct GIS Analyses of buffer area 1 2 C. Enter Addresses/Obtain Postal Information 1 4 8 D. Compile/Proof List for Mailing 1 1 Support Notice and Approval Process 1 Print/Package/Mail All Applicable Notices Assumed Completed by Village Subtotal Hours for Phase 3 -Prepare Mailing Lists 22 2 7 13 Subtotal Dollars for Phase 3 -Prepare Mailing Lists $ 4,975 $ 700 $ 1,610 $ 2,665 Phase 4: Support Public Review Process Prepare Slides for Joint Review Board Meeting & Public Hearing 1 1 4 Attend JRB Meeting and Public Hearing and Present 8 8 Subtotal Hours for Phase 4 -Support Public Review Process 22 9 9 4 Subtotal Dollars for Phase 4 -Support Public Review Process $ 6,040 $ 3,150 $ 2,070 $ 820 Total Hours 209 39 54 116 Total Dollars $ 49,850 $ 13,650 $ 12,420 $ 23,780 General Expenses $ - TOTAL BUDGET FOR PHASES 1 - 4 $ 49,850 Allowance for Boundary Legal Assumed incurred directly by Village Mailing Costs and Title Company Tax Delinquency Research None Assumed TOTAL ESTIMATED PROJECT BUDGET $ 49,850 SIE 14 iriodir nairr 11 tcv(,rlllolpir nci nt Advu isoirs, II. ILC