Consider Proposal for TIF District 14 Review

Staff has received a proposal from Stacie Kvilvang of Ehlers regarding services for TIF District #14 analysis. The proposal outlines Ehler's services which include a basic presentation to the City Council related to TIF, sets a meeting with City staff to determine development areas within The COR, prepares a TIF model for the 331 parcels in the district, and prepares TIF projections for each development. They will follow that up with a meeting with the City Council/HRA to overview the findings and facilitate discussion on the options.

Ms. Kvilvang proposes a not-to-exceed fee of $5,000 for the work to be completed. The proposal is attached. Ms. Kvilvang  will attend the work session this evening to present TIF basics as well as elaborate on her proposed services for the TIF 14 analysis.

The City's strategic plan calls for a review of TIF District 14.  There are several reasons for the City to take this initiative which include:
- the desire to consider a selective decertification of parcels within the district
- to review the assumptions of costs and revenues of the COR
- to analyse the impact of some declining property values within the district

A consultant provides a more thorough and knowledgeable report than can be effeciently  provided  with City staff.

A competing proposal for services could be obtained, but Ehler's has the history with TIF 14 that will be beneficial in performing this work.  The $5,000 cost is reasonable for the scope of work.

The proposal is recommended as presented, but may be modified based upon Council discussion.

A portion of annual TIF revenue is collected by the City for administrative expenses.  Thia would be an administrative expense paid for with TIF funds.

No action necessary.  Staff will proceed to authorize work based upon concensus Council feedback on scope of services.