HomeMy WebLinkAboutContract 1669McCOMB GROUP,, Ltd.
R E A L E S T A T E A N D
RETAIL CONSULTANTS
May 1, 2002
Mr. Walter R. Fehst
City Manager
CITY OF COLUMBIA HEIGHTS
590 -- 40th Avenue NE
Columbia Heights, MN 55421
Dear Walt:
Following up on our phone conversation, we have prepared an engagement letter to conduct
consulting smMces in com~ection with the Columbia Heights Kmart store. The objective of this
analysis will include evaluating Kmart documents related to the store, meeting with limited
partners of the store's ownership group, meeting with City of Columbia Heights officials, and to
determine if a strategy can be formulated to redevelop the Kmart site in a maturer appropriate to
its location and the City of Columbia Heights.
QUALIFICATIONS AND EXPERIENCE
McComb Group, Ltd. has a team that is qualified to conduct the research described in this
proposal. McComb Group's professional staff associated with this engagement includes the
following:
James B. McComb, President, founded the predecessor of McComb Group in 1974
following six years as a member of the corporate staff with Dayton Hudson Corporation.
His experiences at Dayton Hudson and daily association with merchants and shopping
center developers provided the impetus for McComb Group's approach to shopping
center and retail market research and financial feasibility, which includes strong elements
of design and merchandise sensitivities. The finn's approach to shopping center research
and marketing has undergone continuous development and refinement over the past 20
years.
Fred Katter, President of Katter Development, serves as a development consultant to
retail store companies. During his career, he has developed a dozen shopping centers, 30
freestanding stores, over 600 apartment units, and 3,000 single-family homes. His hands-
on knowledge of housing development and construction will be utilized in evaluating
development costs, operating expenses, market rents, and other operating considerations.
Linda Oie, Associate, conducts market research, demographic and consumer analysis for
client engagements. Ms. Oie manages the firm's geographic information systems (GIS)
222 South Ninth Street Suite 380 Minneapolis, Minnesota 55402 · (612) 339-7000 Fax: (612) 338-5572
and demographic databases using a variety of computer platforms and proprietary
software.
Prior to joining McComb Group, Ltd., Ms. Oie was employed as Marketplace
Information Manager at SuperValu, Inc. Her responsibilities included conducting
strategic consumer-based analysis of existing and prospective supermarkets, profiling
SuperValu customers, and delineating trade areas for existing and proposed stores.
Susan Nache, Consultant, performs market research, demographic analysis, and
consumer research tasks. Ms. Nache conducts consumer research analysis and cross-
tabulation on McComb Group's survey processing software; and is familiar with software
programs used by McComb Group, Ltd. for financial feasibility and statistical analysis.
Mr. McComb will be responsible for managing and directing the overall research program and
will participate directly in findings and conclusions. Individual work tasks will be assigned to
personnel within the firm based on qualifications and experience.
It is anticipated that document review will require two to three hours and financial analysis
devoted to determining the value of what Kmart has to sell will be approximately six hours.
Meetings are anticipated to total about twelve hours.
BUDGET
The professional fees for services will be based on time and expenses, and will not exceed
$3,000. The budget is based on our nonnal hourly billing rate of $220 for principals, $200 for
executive associates, $90 to $100 for senior associates, and $65 to $85 for consultants.
Invoices for professional services and expenses will be rendered at mid-month and month end as
our work progresses. Standard billing terms are net 10 days. A finance charge of 1.5 percent
will be charged on all unpaid balances outstanding more than 30 days.
ACCEPTANCE PROCEDURES
To indicate acceptance of the engagement letter, please sign a copy of the proposal and return it
to us together with your check for the retainer as authorization to proceed with this engagement.
We appreciate the opportunity to submit this proposal and look forward to hearing from you
soon. If you have any questions co. ac¢rning the proposal, please call me at (612) 339-7000.
Accepted By: ~~iF'-~ McComb Group, Ltd.
Company:
,ff y / ~ {a,n~ B: McComb
Date: ~/T/~ President