HomeMy WebLinkAbout8B - Redevelopment of Blocks 2 & 4 - Ehlers & Assoc.
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16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
ECONOMIC DEVELOPMENT AUTHORITY
AGENDA REPORT
DECEMBER 18, 2006
8B
PAUL SNOOK, ECONOMIC DEVELOPMENT DIRECTOR
CONSIDER RECOMMENDATION TO CITY COUNCIL TO EXECUTE THE
CITY'S STANDARD PROFESSIONAL SERVICES AGREEMENT WITH
EHLERS & ASSOCIATES TO PROVIDE REDEVELOPMENT AND
FINANCIAL ADVISORY SERVICES FOR REDEVELOPMENT OF BLOCKS 2
AND4
Introduction
The Economic Development Authority is asked to provide recommendation to
the City Council to execute the City's Standard Professional Services
Agreement with Ehlers & Associates, Inc. to provide redevelopment and
financial advisory services for redevelopment of Block 2 and Block 4.
The reason for this action is that the 2030 Vision and Strategic Plan calls for a
thriving downtown, and for the downtown to be a unique community focal point
and attraction that contributes to the City's identity and offers opportunities for
recreation, employment, housing, shopping and dining. Goals included under
this element include encouraging redevelopment, and construction of mixed
use buildings. Redevelopment is a major and complex undertaking which
requires the expertise and specialization of a consultant to provide
redevelopment financial advisory services.
Services will be comprised of general project management and financial
services, and coordination of key project activities needed to complete
redevelopment, including but not limited to managing the request for proposal
process, establishing a tax increment financing district, selecting a master
developer, developer negotiations, and securing development agreements.
Historv
At its July 20th meeting, the Economic Development Advisory Committee
recommended that to the EDA direct staff to engage a consultant to provide
redevelopment and financial advisory services for the redevelopment of Blocks
2 and 4. Per the Economic Development Advisory Committee's
recommendation, the Economic Development Authority, at their September
2006 meeting, authorized staff to initiate actions to retain a consultant to
provide these services, and prepare such recommendation for consideration
by the City Council.
Current Circumstances
Staff solicited proposals from the two most prominent Twin Cities area firms
that provide redevelopment and financial advisory services, Ehlers &
Associates, Inc., and Springsted. Based upon the proposals, it is
recommended that Ehlers & Associates, Inc. be retained. Ehlers' proposal
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
revealed that they are the most qualified firm to deliver on the overall project
requirements, from managing the request for proposal process and developer
selection to establishing TIF and securing development agreements.
Conclusion
Ehlers & Associates is the most qualified firm as referenced in this report, and
therefore the Economic Development Authority should recommend that the
City Council authorize the execution of the City's Standard Professional
Services Agreement with Ehlers & Associates to provide redevelopment and
financial advisory services for redevelopment of Block 2 and Block 4.
FINANCIAL
IMPACT:
The cost of retaining Ehlers & Associates, Inc. to provide redevelopment and
financial advisory services is $15,000. Funds are available from the
professional services portion of the City's economic development budget.
ALTERNATIVES:
1. Offer and pass a motion recommending that the City Council execute the
City's Standard Professional Services Agreement with Ehlers & Associates,
Inc. to provide redevelopment and financial advisory services for
redevelopment of Block 2 and Block 4
2. Defer for a specific reason
RECOMMENDED
MOTION:
Alternative 1.
ATTACHMENTS I
EXHIBITS:
None
Reviewed by: (
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Frank Boyles, 7pOirector