FOR FINANCIAL FEASIBILITY SERVICES
The City of Lawrence, Kansas is requesting proposals for the selection of a financial advisor. Specifically, the City is soliciting proposals in regard to issues requiring outside expertise in the use of the tax increment financing (TIF) of public and private improvements associated with the proposed construction of a hotel-retail-condom mum project. The property may also become part of a transportation development district (TDD). The proposed development is located on .746 acres and calls for a mixed use commercial development consisting of a 74 room hotel, 11,000 square feet of retail space, parking garage, and two floors of condominium units or extended stay units. Additional information on the project, including preliminary cost and revenue information from the developer is available on the City’s website for the November 27, 2007 City Commission agenda:
http://www.lawrenceks.org/web_based_agendas/11-27-07/11-27-07h/11-27-07_agenda_click_here.html
Proposals will be evaluated based on the following minimum criteria:
A. PERSONNEL
Proposal should list the following names and qualifications:
Project Manager and Project Staff
Public Finance Personnel
References
B. EXPERIENCE
Indicate recent experience and qualifications regarding the following:
Evaluation of the tax increment financing proposals
Evaluation of transportation development district proposals
Development of funding options for financing private/public improvements within the above districts
Experience in the evaluation of hotel/hospitality facilities is strongly
preferred
C. ENGAGEMENT AGREEMENT
Engagement agreement should address your ability and willingness to provide the following items:
Debt Service Schedules
Review of assumptions used by developer to create taxable increments:
Marketability of hotel and parking garage
Revenues from hotel/parking activities
Costs associated with building the private and public improvements
Other Benefits/Costs
TIF/TDD Financing Alternatives
Report on the project that complies with the requirements of Kansas statutes
D. FEE STRUCTURE
Indicate how your firm would be compensated for a feasibility study as defined by KSA 12-1770a that would include the following:
1. Report on the feasibility of the assumptions used by the developer to generate the increments in a TIF and/or TDD.
2. Report on the financing alternatives available to fund the requested public/private improvements and an evaluation of the allowable methods.
3. Advice concerning the type of bonds to finance eligible public/private improvements.
4. Report on the sufficiency of revenues generated by the district(s) to pay for the eligible public/private improvements.
Please indicate the individuals who will be assigned to work on the project and the anticipated number of hours.
To be considered complete, your bid response should be provided in both hard copy (5 copies and in an electronic format. The response should address items A through D at a minimum.
Proposals must be received in the City Clerk’s Office no later than 2:00 PM CST Monday, December 17, 2007. The mailing address is: City Clerk, City of Lawrence, 6 E. 6th, P.O. Box 708, Lawrence, KS 66044. The City is anticipating selecting a consultant by December 21, 2007. The City would like to have the study completed by mid January 2008. Please direct any questions to: Ed Mullins, Finance Director, 785-832-3214 or emullins@ci.lawrence.ks.us .
The city reserves the right to reject any and or all proposals.
The Finance Department and City Manager’s Office will evaluate the proposals based on items A through D.
The Finance Department and City Manager’s Office will determine which firms have adequately satisfied requirements A through C. The Department will then indicate the order of selection based on items A through C. Once this has been completed the fee structure bids will be considered for the selected firms.
Upon approval, the city will enter into an agreement for financial advisory services.
The city has retained the firms of Gilmore & Bell whose legal services will include the rendition of an unqualified opinion as to the legality and tax status of the bonds, as well as assistance in preparing the official statement and printing and delivery of the bonds.
The city and bond counsel will cooperate with the successful bidder in the passage of all necessary ordinances, resolutions, and certificates required in the issuance and delivery of the bonds.
Kansas statutes 12-1770a defines a feasibility study as follows:
k) (1) "Feasibility study" means:
(A) A study which shows whether a redevelopment project's, special bond project's or bioscience development project's benefits and tax increment revenue and other available revenues under subsection (a)(1) of K.S.A. 12-1774, and amendments thereto, are expected to exceed or be sufficient to pay for the redevelopment, special bond or bioscience development project costs; and
(B) the effect, if any, the redevelopment project costs, special bond project or bioscience development project will have on any outstanding special obligation bonds payable from the revenues described in subsections(a)(1)(D) and (a)(1)(G) of K.S.A. 12-1774, and amendments thereto.
(2) For a redevelopment project, special bond project or bioscience project financed by bonds payable from revenues described in subsections (a)(1)(D) and (a)(1)(G) of K.S.A. 12-1774, and amendments thereto, the feasibility study must also include:
(A) A description of any project submitted under K.S.A. 12-1771d, and amendments thereto, to satisfy the requirements of paragraph (i) of this section;
(B) a statement of how the jobs and taxes obtained from the project will contribute significantly to the economic development of the state and region;
(C) a statement concerning whether a portion of the local sales and use taxes are pledged to other uses and are unavailable as revenue for the redevelopment project. If a portion of local sales and use taxes is so committed, the applicant shall describe the following:
(i) The percentage of sales and use taxes collected that are so committed; and
(ii) the date or dates on which the local sales and use taxes pledged to other uses can be pledged for repayment of special obligation bonds;
(D) an anticipated principal and interest payment schedule on the bonds; and
(E) following approval of the redevelopment plan, the feasibility study will be supplemented to include a copy of the minutes of the governing body meeting or meetings of any city whose bonding authority will be utilized in the project, evidencing that a redevelopment plan has been created, discussed, and adopted by the city in a regularly scheduled open public meeting.
(3) For a proposed major commercial entertainment and tourism area, the feasibility study must also include:
(A) Visitation expectations;
(B) Economic impact;
(C) The unique quality of the project;
(D) The ability of the project to gain sufficient market share to:
(i) Remain profitable past the term of repayment; and
(ii) Maintain status as a significant factor for travel decisions;
(E) Integration and collaboration with other resources or businesses;
(F) The quality of service and experience provided, as measured against national consumer standards for the specific target market;
(G) Project accountability, measured according to best industry practices; and
(H) The expected return on state and local investment that the project is anticipated to produce.
(4) The failure to include all information enumerated in this subsection in the feasibility study for a redevelopment, special bond or bioscience project shall not affect the validity of bonds issued pursuant to this act.