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05/16/2005 Call to Order Approval of Minutes: 04-18-2005 05-02-2005 eRA Agenda Date: 05/16/2005 Location: Council Chambers - City Hall CRA Item 1. Approve professional services contract from Swan Development Advisors, Inc. in the amount not to exceed $7,750, to conduct an analysis of the future tax increment that will be generated in the original and expanded CRA boundaries and the appropriate officials be authorized to execute same. Executive Director (Assistant City Manager) verbal reports Other Business Adjourn eRA Agenda 5/1612005 Page 1 of 1 y :~. '.. ':"~. . , . .~ .. ~. . .' . .~'.'......,! ~ " ",,"~~'<-'-. , , . . . . / ,. I /, . ~ CRA Cover Memorandum . .................................................. Trackinq Number: 1,246 Actual Date: 05/16/2005 Subiect I Recommendation: Approve professional services contract from Swan Development Advisors, Inc. in the amount not to exceed $7,750, to conduct an analysis of the future tax increment that will be generated in the original and expanded CRA boundaries and the appropriate officials be authorized to execute same. Summary: As part of the Downtown Clearwater Redevelopment Plan, approved by the County in February 2004, CRA staff conducted tax increment revenue projections for the original and the expanded CRA over a 30-year period. In the Redevelopment Plan, TIF is identified as one of the funding sources for several capital and infrastructure improvement projects. In addition, TIF is envisioned to be used for paying impact fees, "buying in" of public parking in private projects, assembling redevelopment sites, purchasing land and/or buildings, environmental remediation, and fac;ade improvement grants. In its 23-year history, the CRA and TIF has been a critically effective tool in positioning downtown for redevelopment. The CRA is seeing visible signs of improvement with increases in property values in the last several years translating into additional TIF. In order to make informed decisions and plan for upcoming projects and developments, the CRA needs to revise, update, and incorporate new and anticipated projects to the tax increment projections. The consultant will undertake an analytical review of the factors affecting the tax increment in the CRA and review the original projections made in 2003. The consultant will also examine the taxable nature of all the anticipated projects in the CRA in order to determine an accurate projection of the future tax increment of the CRA. The consultant will prepare a schedule of tax increment projections that will enable the CRA to make informed decisions and plan for upcoming projects and developments. The $7,750.00 is available in the Professional Services line item of the CRA's FY 04-05 Operating Budget. Oriqinatinq: Economic Development and Housing Cateqorv: Agreements/Contracts - with cost Public Hearinq: No Financial Information: ~ Other In Current Year Budqet? Yes Budqet Adiustment: No y :~. '.. ':"~. . , . .~ .. ~. . .' . .~'.'......,! ~ " ",,"~~'<-'-. , , . . . . / ,. I /, . ~ CRA Cover Memorandum . .................................................. Current Year Cost: $7,750.00 Annual Operatinq Cost: $0.00 For Fiscal Year: 10/01/2004 to 09/30/2005 Not to Exceed: $7,750.00 Appropriation Code(s) 188-09311-530100-552-000 Amount $7,750.00 Comments Review Approval Geraldine Camoos Pam Akin 03-30-2005 17:37:14 03-30-2005 17: 40 : 31 04-11-2005 13: 12:38 04-05-2005 14:19:15 04-11-2005 13:17:23 04-05-2005 14:43:09 04-11-2005 07: 54: 10 Geraldine Camoos Bill Horne Tina Wilson Cvndie Goudeau Garry Brumback Swan Development Advisors, Inc. Community and Real Estate Development Consulting PROFESSIONAL SERVICES PROPOSAL To: Ms, Geraldine Campos Economic Development and Housing Director CRA Interim Executive Director City of Clearwater 112 S. Osceola Avenue Clearwater, FL 33756 ,; , .' ,. ..~/o~>... -__________ Bruce Lyon President Swan Development Advisors, Inc. P,O, Box 2097 Lakeland, FL 33806 From: Date: March 21, 2005 Subject: Professional Services Proposal Tax Increment Analysis Downtown Community Redevelopment Area (CRA) Clearwater, FL Scope of Services Overview I, The City of Clearwater Director of Economic Development requests Swan Development Advisors to submit a proposal outlining the Scope of Work and Fee structure for assisting the City of Clearwater to undertake an analysis of the future tax increment that will be generated in the Downtown Clearwater Community Redevelopment Area. 2. It is the intent of the consultant and the City of Clearwater Community Redevelopment Agency to prepare a schedule of tax increment projections that will enable the City of Clearwater and the CRA to make informed decisions regarding methods to utilize the tax increment for upcoming projects and developments. 3, Mr. Bruce Lyon of Swan Development Advisors, Inc. will serve as the project manager, performing the technical and analytical project tasks for the tax increment study, 4. Ms. Geraldine Campos of the City of Clearwater will provide the necessary project related information to Swan Development Advisors, and will be available on a periodic basis to meet with Swan Development Advisors to examine the draft work product, to provide additional information as needed and to make certain assumptions regarding the timing and taxable nature of future projects. P,Q. Box 2097 . Lakeland, FL 33806. (863) 802-9490 . Fax (863) 802-9630 Email: Bruce@Swanadvisors.com Swan Development Advisors, Inc. Community and Real Estate Development Consulting Tax Increment Analvsis Swan Development Advisors will undertake an analytical review of the factors affecting the tax increment in the CRA utilizing information provided by the City of Clearwater to develop tax increment projections for the area. Swan Development Advisors will revise, update and incorporate new and anticipated projects to these projections in order to determine an accurate projection ofthe future tax increment that the City of Clearwater Downtown Community Redevelopment Agency will receive in the future. I I. Swan Development Advisors will attend up to two (2) initial meetings with the Client for the purpose of reviewing and reaffirming the Client needs and objectives and to review the data to be provided by the Client that the Client may need to collect from various City Departments. These meetings may include interviews or discussions with key staff members regarding specific projects and their taxable structure. 2. Consultant will attend up to three (3) additional meetings with Client to review variables, assumptions and findings prior to submission of final report. 3, Swan Development Advisors, Inc. will undertake an examination of current tax increment projections to validate their accuracy and/or to adjust for externalities not integrated into the current modeling. 4. Swan Development Advisors will examine the taxable nature of all anticipated projects to be located in the Downtown CRA for the purpose of projecting the tax revenues that will be generated by these projects and thus the tax increment to be contributed to the CRA by the projects. 5. Consultant will provide a draft report based on the review and validation of assumptions by Client... Report will contain a written description of the process, findings and conclusions supported by exhibits that detail the tax increment projections for the Downtown CRA. 6. Client will provide editorial or technical feedback to Consultant regarding the draft report within fifteen business days of receipt upon which time the Consultant will produce a final report within fifteen business days. Fee Schedule The above professional services are available to the Clearwater Downtown Community Redevelopment Agency on a lump-sum basis. Invoices to be paid monthly on a percentage completion basis. Tax Increment Analysis $7,250.00 Reimbursables $ 500,00 (Including travel, mileage, subsistence, long distance communication, postage, shipping, reports and reproductions. Out-of-Pocket expenses will be billed at cost plus 15%)) Total Maximum Contract Amount $7.750.00 P,O. Box 2097 . Lakeland, FL 33806. (863) 802-9490 . Fax (863) 802-9630 Email: Bruce@Swanadvisors.com 2 Swan Development Advisors, Inc. Community and Real Estate D""elopment Consulting Timeline for Completion of Project Barring delays, the project activities can be completed as indicated below, Final Report - 100% 60 business days from receipt of Tax increment data and required project information 15 business days from receipt of CRA comments . Tax Increment Analysis Tax Increment Analysis Draft Report - 80% complete Acceptance and Authorization to Proceed Pre-Payment - The Client will make an initial payment of 0 .00 upon execution of this agreement. Payment Schedule - Fees will be billed monthly on a percentage completion basis. Invoices to be paid by Client within 30 days of invoice date. Full payment shall be due to Swan Development Advisors, Inc. upon final billing. Client agrees to review all billing invoices/statements and promptly notify Swan Development Advisors, Inc., in writing, of any discrepancies or errors with fifteen (15) days from the receipt of the invoice/statement. If this proposallAgreement satisfactorily sets forth Client's entire understanding of the agreement, please sign the agreement below in the space provided and return it to Swan Development Advisors, Inc. as authorization to proceed with the work. Accepted this day of , 2005. Signature Ms. Geraldine Campos, Economic Development and Housing Director CRA Interim Executive Director 112 S. Osceola Avenue Clearwater, FL 33756 P.O. Box 2097 . Lakeland, FL 33806. (863) 802-9490 . Fax (863) 802-9630 Email: Bruce@Swanadvisors.com 3