LETTER AMENDMENT TO AGREEMENT
~..~
1'-- l._,-
~"'"
1 I
HUNTER INTERESTS INC.
January 11, 1991
Mr. Jerry Sternstein
Economic Development Director
City of CLearwater
112 South Osceola Avenue
Clearwater, FL 34618
Dear Jerry:
This is a Letter Amendment to our Agreement of July 2, 1990 for
the second phase of our firm's services to the CRA.
The tasks described below follow the outline which you and I have
exchanged and discussed, and which was approved by the CRA Board
in their December 20, 1990 meeting. The work was begun shortly
after that meeting in accordance with the tasks described below:
Task 1: Establish Buildinq Proqram - A phased development
program for the mixed-use project will be prepared.
Individual building elements will be organized into
sequential phases based upon the development concept and
market strength. Service and support requirements will be
identified, along with specific development consideration
such as market orientation and project character, desirable
ingress and egress points, parking and service requirements,
etc.
Task 2: site Analvsis - HII will retain a planning and
design subcontractor to conduct an analysis of the city hall
annex site. This analysis will include utility service,~.
necessary site size and config-q!etion, signj.t!~M}!:n_l1..atural D.(I/?b
and man-made features, develop~bstacles inl~, the torr
relationships to surrounding and adjacent uses, and normal
site analysis factors. The design subcontractor will be
assisted by HII staff, on site, in order to understand all
aspects of the conceptual approach recommended in the Phase
I report. The city staff will assist with revision of maps,
aerial photographs and data on the site.
Task 3: Alternative site and Development Concepts - Two or
three different development concepts will be explored by the
--,P
~..I!/,',1 /"1
! ,/J'-- ,
.\~./ (..~ ;.....<.
,
....>.~L-,;,~-
1 Z 1 MAIN STREET
. ANNAPOLIS, MARYLAND 21401
.
(301) 269-0033
,I ",? I . ,,:-- i
.'/./: '
..,/
tJ/
'7
..:(.
"""'11II
.:-.'"
)
HUNTER INTERESTS INC.
I
Jerry sternstein
January 11, 1991
Page Two -
planning subcontractor with assistance from the HII staff. One
concept will determine the necessary site size and configuration
for the largest configuration of facilities envisioned in the
mixed-use project concept. Another concept may look at a smaller
project on a smaller site, assuming that certain later phase
components are not included. The concepts will show massing of
buildings, pedestrians and vehicular circulation patterns,
relationships to surrounding and adjacent uses and normal
conceptual planning elements.
Task 4: Illustrative site Plan When a preferred
development concept has been agreed upon through
consultation with city staff, an illustrative site plan will
be prepared. This drawing will be a rendered plan of a
completed proj ect, showing building forms, parking areas,
ingress and egress points, proposed landscaping and
vegetation, and other important aspects of the project.
Task 5: Imaqe study - A perspective sketch for image study
of the proposed project will be prepared to further
demonstrate the character and environment of the project, as
envisioned by the project team. This drawing will help
illustrate the concept and facilitate communication with
others.
Task 6: Capi tal Cost Estimates - Preliminary development
cost estimates will be made for the overall project with a
focus on the first development phase. Using unit cost
estimates adjusted for future Clearwater markets, the
capital cost profile will be prepared. If necessary,
coordination with a local consulting engineering firm will
be accomplished to ensure the accuracy of the cost
estimating units which are used.
Task 7: Operatinq Cost Estimates - Phase I operating costs
will be estimated as an input to the financial analysis
model. Standard operating costs for a project of this type
will be used and adjusted by any unique circumstances
attributable to the project.
Task 8: Cash Flow Model - A special financial analysis
model designed for this project will be undertaken in this
task. Independent profit centers for various elements will
be established, and a residual land value analysis format
will be used.
.
. ,
"~ :..:
I
I
HUNTER INTERESTS INC.
Jerry Sternstein
January 11, 1991
Page Three -
Task 9: Estimate Input Data - The model will be run in this
task using input data from the cost estimates described
above and other input data estimated for this project. The
model will be debugged to ensure its proper operation
through test runs.
Task 10: Base Financial Analysis The preferred
development concept will be run through the cash flow model
to determine project financial feasibility. The intention
is to include all development phases and test their
feasibility using an analysis technique that also estimates
the value of the site to this specific project. Normal
thresholds of developers success, profitability and
financing terms will be included.
Task 11: Sensitivity Analyses - Up to four sensitivity runs
of the model will be conducted under this task. Individual
sensitivity runs will test certain variables in accordance
with instructions from the city. Various financing concepts
can be tested, with along changing pUblic/private investment
ratios, or similar factors.
Task 12: Technical Memorandum - All financial analysis work
accomplished in Tasks 8 through 11 above will be reported in
a technical memorandum. The base financial analysis and
sensitivity runs will described in detail. The intention is
to have a technical work product that demonstrates project
financial feasibility and shows the impact of several
variable factors.
Task 13: Fiscal Impact Analysis - The HII team will
structure an an~lysis of the fiscal impact of the project in fb
this task. )( t(esearch will be conducted on direct andF.;11-
indirect tax flows and fiscal benefits to the City of~
Clearwater that will result from construction of this
project. The format will be similar to the analyses which
developers conduct to show municipal fiscal benefits in
relation to the cost of public sector participation.
Task 14: Fiscal Analysis Data Collection Using
publications and information provided by the City, the full
range of tax procedure at all levels of government that
affect the project will be collected. Specific tax rate
data, assessment practices and collection procedures will be
analyzed, and appropriate indices and input data will be
factored into the model.
",4"
..
I
I
HUNTER INTERESTS INC.
Jerry sternstein
January 11, 1991
Page four -
Task 15: Confirm Fiscal Data - Interviews will be conducted
with City Government and other government taxing officials
to verify, adjust and validate fiscal data. Likely rate and
practice changes anticipated in the near future may be
factored into the model to assure its reliability.
Task 16: Conduct Fiscal Impact Calculations - The fiscal
model will be run to assess the short and long-term fiscal
impact of the project on the City. The analysis will
include summary of anticipated financial participation by
the City, as described in the financial analysis model. The
purpose is to allow the CRA and the City to analyze fiscal
benefits in relation to pUblic sector costs
Task 17: Technical Memorandum - All work in Tasks 13
through 16 above will be reported in a technical memorandum
on the fiscal impact analysis. Appropriate tables, charts,
and data will be included along with the consultant's
conclusions and recommendations.
We estimate four to five calendar months as necessary for the
conduct of the work described above. That estimate assumes
normal work procedures, smooth working relationships with the
client and subconsultant, and no inordinate delays in scheduling
meetings, securing information and materials, etc. The City will
be billed on a monthly basis for actual professional time
expended on the tasks at the firm's normal billing rates, plus
request for compensation for direct expenses such as, travel,
subsistence, telephone, reproduction, and miscellaneous direct
expenses. The upset budget or "not-to-exceed" allowance for
professional time and expenses is $74,000.00.
If this meets with your approval, please execute both copies and
return one to us for our files. We were delighted with the
outcome of the first phase of our work for the City, and we
anticipate moving on this exciting development program closer to
reality through accomplishment of this second work phase.
Sincerely,
ACCEPTANCE:
Donald E. Hunter
President
BY:
ATTEST:
~ G. J.4"~.J:l,,Lft-
Se etary - , . .
- - -
I
I
CITY OF CLEARWATER
Interdepartment Correspondence
FROM:
Cyndie Goudeau, City Clerk
Jerry D. Sternstein, Economic Development Director ~
TO:
1'\
COPIES: File
SUBJECT: Letter of Amendment to the Hunter Agreement of 7/2/90
DATE: January 22, 1991
On December 10, 1990, the Community Redevelopment Agency approved
an amendment to the Hunter contract dated July 2, 1990, to allow
for conceptual and financial analyses not to exceed $74,000.
I have attached two original Letter of Amendments that will require
the Mayor's signature as well as her initials on changes made on
pages 1 and 3 of the agreements.
please return one signed original to be forwarded to Hunter
Interests Inc.
Thank you.
JDS/sh
attachments
J1i{6. ~ 1J~ ~ :-J:; · r {J.J;>
, )
~ ;l-~ D{~ Wl#: ~ ,~.J;
If ~ tJo-.d. r..:... ~
,....-z..C-qt
(jf(-
~:l)f~~
e...R ~ j..,... - f}1
Thk
RECEIVED
JAM 2 5 1931
CITY ATTORN!:Y
1\EtEl~E'D
J~t\ 2 3 \99\
C\1'l CLERK