Award Contract for Services for Further Analysis of Tax Increment Financing (TIF) District #14 - The COR

The purpose of this case is to review the proposals received for further analysis of TIF District 14 and award same.

The city of Ramsey created TIF District #14 in 2010 via special legislation.  At this time, a TIF plan was created by Springsted, Inc.,  on behalf of the city, which reflected the proposed property tax values and respective estimated increment to be generated in the TIF District #14 area for the term of the district.  Due to a down-turn in the economy, the proposed estimates are not holding favorably for the city.

A further analysis of the area is needed to determine the correct size of the district, possible development scenarios and the possible need for special legislation due to not only a restrictive TIF rule known as the 4-Year knock-down rule, but also in relation to the F&C project in which the city has issued debt and a pay-as-you go TIF note.

During the regular HRA meeting of October 8, staff presented a Proposal for Services for Further Analysis of TIF District #14 - The COR from Ehlers.  The proposal was for a not-to-exceed amount of $5,000 to finalize the initial work performed under the first contract by Ehlers.  Staff noted that the proposal would include an amendment that was to add the task of performing drafting and analysis of special legislation to meet the City's tax increment financing goals.. 

The HRA discussed the proposal and postponed consideration.  Staff was directed to obtain quotes from other consultants.  

 

Staff sent out a request for  proposals to the firms of Ehlers, Northland Securities and Springsted on October 16, 2013 with a closing date of October 28, 2013. 

Proposals were received from Ehlers and Northland Securities.  Both proposals are attached for the Authority to review.

Alternative 1:  Accept the proposal from Ehlers in a not-to-exceed amount of $5,000.  This was the amount of their original proposal at the October 8 HRA meeting.  Ehlers was the firm that  worked exclusively on the F&C-Residence at the COR project.  Of the firms that submitted a proposal, they are the most knowledgeable of the city's TIF District # 14 area and have already performed a first analysis of the city's original TIF #14 plan.

Alternative 2:  Accept the proposal from Northland Securities which has bid the proposal in two phases.  Phase I:  Analysis of district in an amount not-to-exceed $5,920 and Phase II:  Special Legislation in a not-to-exceed amount of $1,480.  As Northland has not been active in prior activities of the COR, they would require additional staff time to be "caught up to date".

Alternative 3: Do nothing.  Staff does not recommend this approach as the bonded debt and TIF Note to Flaherty and Collins requires that the city act promptly in regards to special legislation, down-sizing TIF district area, etc.
 

In 2010 a reimbursement resolution was established for TIF #2 to loan to TIF #14 an amount of up to $500,000 to cover all administration costs related to the creation of the TIF #14 area and F&C project with TIF #2 to be paid back via future increment from TIF #14.

Staff recommends  accepting the proposal from Ehlers.  They have submitted the lowest proposal and have the most knowledge of the TIF #14 area of those proposals received.

Motion to approve  the proposal from Ehlers in a not-to-exceed amount of $5,000.