HomeMy WebLinkAboutContract 1560December 4, 2000
Randy Schumacher
City of Columbia Heights
590 40th Avenue NE
Columbia Heights, MN 55421
Dear Randy:
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The following serves as a Letter of Understanding for the provision of financial advisory services by
Ehlers & Associates, Inc. ("Ehlers") to the Columbia Heights Economic Development Authority
("EDA"). This Letter of Understanding is based on our letter of June 15, 2000.
1. Scope of Services
1.1 TIE' Reporting
Ehlers will assist the City with the preparation of the 1999 State reports for each tax increment
financing district. The objective of this task is to prepare accurate reports that meet the criteria of the
Office of the State Auditor (OSA). Ehlers will review original plan documents, subsequent plan
modifications and City financial records to create data for the reports. If desired by the City, we will
provide the City with the data and our QuickTIF software. The software will assist the City in preparing
annual reports in future years.
1.2 TIF Compliance
Following the submission of the 1999 Reports, Ehlers will conduct a compliance review of all
Columbia Heights TIF Districts. Ehlers will organize existing records, identify potential compliance
issues and recommend TIF management actions. Ehlers will prepare necessary TIF plan modifications
and coordinate the plan amendment process.
1.3 Other Development Projects
At your direction, Ehlers will serve the EDA on redevelopment and housing projects. Typical
housing and development services include preparation of TIF district cash flow projections, analysis of
developer proposals, creation of project finance options and implications, implementation of
redevelopment plans, preparation and management of TIF districts, and creation of housing improvement
areas.
1.4 Debt
Ehlers will assist the EDA with the planning, issuance and management of debt required to
undertake EDA projects. This service applies bonds issued by the EDA and to bonds issued by the City
for EDA projects.
L E A D E R S I N P U B L I C F I N A N C E
Equal Opportunity Employer
Charter Member of the National Association
of Independent Public Finance Advisors
3060 Centre Pointe Drive, Roseville, MN 55113-1105 651.697.8500 fax 651.697.8555 www.ehlers-inc.com
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Letter of Understanding
December 4, 2000
Page 2
2. Fees
Ehlers & Associates will be compensated for the services described in this letter as follows:
2.1 The budget for completion of the 1999 TIF Reports is $7,000. We will be bill for services
performed at the rate of $175 per hour. The QuickTIF software is an additional $750 (plus tax).
2.2 Through the TIF reporting, we will gain a better understanding of your TIF districts and existing
documentation. Following the completion of the 1999 reports, we will prepare a budget for the
compliance review. This work will also be billed at $175/ hour.
2.3 Ehlers charges a flat fee of $4,500 for the creation of a TIF district.
2.4 All other work performed on an hourly basis will be billed at the rate of $135 per hour. Ehlers
reviews and may adjust hourly rates at the beginning of each calendar year. Whenever possible,
Ehlers will provide a scope of work and estimated budget for all projects.
2.5 Services related to the planning and issuance of bonds will be billed according to the following
fee schedule:
Amount of
Debt
Up to $500,000
$501,000 to $1,000,000
$1,001,000 to $2,000,000
$2,001,000 to $10,000,000
Respectfully submitted,
EH & ASSOCIATE C.
J. Russ 11 Fifield, Jr.
Vice President
Base Fee Per $1,000
Fee Additional Bonds
$8,925
8,925 $8.90
13,375 4.45
17,825 2.30
helly Eldr ge
Associate Financial Advisor
Accepted by the umbia Heights Economic Development Authority
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Robert ann P e 'den Date
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-Walt Fehst, E ecutiv Director Date
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