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HomeMy WebLinkAboutCity Council Resolutions (R-98-1398)-08/18/1998 RESOLUTION R-98-1398 A RESOLUTION APPROVING AN AGREEMENT WITH SCHRADER AND CLINE TO PROVIDE ASSISTANCE IN DEVELOPING A TAX INCREMENT FINANCING DISTRICT WHEREAS, the Colleyville Economic Development Task Force has recommended that the City Council create a tax increment financing district to provide incentives for the development of commercial properties on Colleyville Boulevard; and WHEREAS, the City Council believes that a tax increment financing district will provide the economic stimulus necessary to attract sales tax- producing commercial development. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEYVILLE, TEXAS: Sec. 1. THAT a consulting agreement with the firm of Schrader and Cline in an amount not to exceed $47,500 for the purpose of providing' assistance in developing the tax increment financing district is approved and the City Manager is authorized to sign the agreement. AND IT IS SO RESOLVED. PASSED BY A VOTE OF S AYES, ~ ON THIS THE , g'tfl DAY OF ,All j U ATTEST: NAYS, AND 0 ABSTENTIONS ,1998. CITY OF COLLEYVILLE ;.J~ 7~~. J n Harris, TRMC, CMC City Secretary Richard Newton Mayor SCHRADER & CLINE, LLC July 23, 1998 Mr. C. Robert Stripling City Manager City of Colleyville P.O.Box185 Colleyville, TX 76034 Dear Mr. Stripling: Thanks very much for the visit on Monday, July 20, and the privilege of offering the services of Schrader & Cline, LLC to you. We appreciate the opportunity to be considered as part of your team in the creation of a Tax Increment Financing (TIF) District for the 70-acre tract (and possibly adjacent land) along SH 26 in the City of Colleyville. I understand that during this engagement we will: 1. Be responsible to you, perform under your direction, and receIve assignments from you; 2. Assist you with advice and counsel; 3. Provide our services, as outlined in Attachments A and B, coordinate work of all involved in creating the district, including the activities of any other consultants retained by you the and perform as your agent when authorized with other taxing jurisdictions for the creation of a TIF District for the City of Colleyville; 4. Have the services of the City Attorney, Financial Advisor, and Economic Development Manger and the availability of other members of the City staff; and 5. Perform this work with the objective of creating the District by December IS, 1998. Achieving that target, however, will depend upon all members of the team being actively involved in the task and performing in a timely manner. 16885 DALLAS PARKWAY SUITE 401 DALLAS, TEXAS 75248 (972) 931-3292 FAX (972) 732-6430 I understand that this engagement is for the services of our firm and will include one or, at times, both Larry Cline and myself, and commences on the (date) and will continue until approval of the TIF District or canceled by either party with thirty (30) days written notice. I also understand that the City of Colleyville may retain other consultants, as necessary (financial analyst, financial advisor, legal counsel, bond counsel, etc.) and we will coordinate their work. We will serve as your agent with the county, school district, community college district, hospital district and any private developer(s) that become involved. We also anticipate having the support and assistance of City staff to the extent they can be made available. For the services of both Larry and myself, the City of Colleyville will pay us on an hourly basis at the rate of $ 1 75/hour for George R. Schrader, $150/hour for Larry D. Cline and $30/hour for our administrative assistant. It is estimated that costs per task will be as follows: TASK AMOUNT (Est.) 1. Feasibility Analysis $ 5,000.00 2. Development of TIF Program 6,200.00 3. Creation of the District 19,100.00 4. Establishment of District Organization and 12,900.00 Final Plan Total $ 43,200.00 Schrader & Cline, LLC agree to a Not-To-Exceed fee of $47,500 for carrying out this project and performing these tasks. Any additions or reductions to the program and tasks enumerated will result in the adjustment of the estimate of costs and Not-to-Exceed fee. We will maintain accurate and complete records of time spent on this project and will compare our costs with the above estimates at the end of each task. If total billings for all work to be performed are less than the Not-To-Exceed fee, Schrader & Cline will be paid a success fee of one-half (1/2) of the difference between the total billings and $47,500.00 In addition to the hourly fee, the City of Colleyville will reimburse any incidental out-of-pocket expenses (courier fees, long distance telephone calls, parking fees, travel and preauthorized entertainment, substantial copying, fax transmissions, etc.); other expenses will be approved . . prior to their being incurred. Billings will be submitted on the first of the month for activity in the previous month, with payment to be made by the fifteenth (15th). If these terms are in need of further discussion or clarification, please telephone me at 972-931- 3292, (FAX 972-386-8008). Otherwise, please acknowledge your acceptance in the space provided and return a copy to me with an initial engagement draw of $4,000.00 to be applied to the fee. We are complimented by your interest in our services and we appreciate this opportunity to be considered by the City of Colleyville. Yours very truly, ./tt -#-~/ 1:eord' Schrader ACCEPTED: c~~ C. Robert Stripling City Manager City of Colleyville ~ l\~ )4~ Date ATTACHMENT A Colleyville TIF Scope of Services Schrader & Cline, LLC ("Consultants") shall perform the following services for the City of Colleyville ("Client"). I. Development of the TIF Program. Consultant shall assist and provide to Client, Consultant's full range of services for the development of a Tax Increment Financing (TIF) District Program for the City of Colleyville, Texas. Consultant shall arrange with the City to collect data, aid in determining the boundaries of the district, develop a project list of infrastructure improvements, develop a pro forma land use plan, develop a program of new and accelerated private development, develop a feasibility study and financing plan, arrange for a survey of boundaries of the TIF district and a legal description of the final boundaries, cause to be prepared draft documents for review by City staff establishing the TIF district and provide such other services as would be reasonably appropriate in connection with the TIF. As requested and directed by Client, Consultant shall coordinate and cooperate with such other Consultants as designated by Client and attend meetings and assist in negotiations, as required, with the appropriate state, county and municipal authorities to insure conformance and approval of the Tax Increment Financing District Program as interpreted and imposed upon the Project by such governmental authorities and prepare and submit all necessary documentation as required. Consultant shall obtain the approval of Client for all commitments to be made on behalf of Client. The time scheduled for these services is approximately five (5) weeks. 2. Creation of the TIF District: Consultant shall provide advice and assist in having the appropriate governing authorities notified with the Notice of Intent to set up the TIF district. Brief, assist, and make formal presentations to the public and appropriate government officials on how the Project will provide substantially more tax revenue and little, if any, burden on the other affected jurisdictions. These jurisdictions include, but are not limited to the school district, county government, community college and hospital within the local area. Consultant shall attend and make the necessary presentations at the public hearing for the TIF District. Consultant shall assist and prepare necessary draft documents for the enactment of applicable ordinances and the establishment of the Board of Directors for the TIF Fund and the District. The time scheduled for these services is approximately eleven (11) weeks. 3. Establishment of the District Organization and Final Plan. Consultant shall assist and consult with the City and other taxing jurisdictions on the appointment of the TIP Board of Directors. Consultant shall arrange for all documentation necessary for the bylaws, final project and financing plans of the TIP District. Consultant shall assist in the organization of the first Board of Directors meeting. Consultant shall attend meetings and assist in negotiations, as required, for review of the final TIF Project Plan and financing for the District. Consultant shall assist Client in obtaining final approval of the plan by all appropriate governmental authorities. The time scheduled for these services is approximately four (4) weeks. 4. If requested by Client, Consultant shall, as an additional service. perform the following: Establish Jurisdictional Agreements. Consultant shall assist Client in obtaining the approval of agreements with other appropriate jurisdictions for the TIF District and the financing plan for the District. File all necessary documents with all appropriate governmental authorities. The time scheduled for these services is two (2) months. ATTACHMENT B CITY OF COLLEYVILLE TIF DISTRICT PROGRAM * DEVELOPMENT OF TIF PROGRAM July-August 1998 . Collect data . Determine boundary . Develop project list of infrastructure improvements . Develop pro forma land use plan . Develop forecast of new and accelerated private development . Complete feasibility study and financing plans · Survey and legal description of final boundary . Preparation of legal documentation . Review with City staff Council briefing of TIF proposal Aug. 18, 1998 CREATION OF THE DISTRICT Aug - Nov. 1998 Council approves Notice of Intent and sends to other jurisdictions, including Preliminary Plans Aug. 18,1998 Briefing of taxing jurisdictions' designated representatives Early Sept. 1998 Formal Presentations to other jurisdictions . School . County . Community College . Hospital . Improvement District Early Oct. 1998 Early Oct. 1998 Early Oct. 1998 Early Oct. 1998 Early Oct. 1998 First Reading Public Hearing Oct. 20, 1998 Nov. 3, 1998 City Council by Ordinance establishes the zone, authorizes a Board of Directors, creates TIF Fund Nov. 3, 1998 ESTABLISHMENT OF DISTRICT ORGANIZATION AND FINAL PLAN Nov. - Dec. 1998 Notify jurisdictions of creation/request Board nomination for appointment Nov. 3, 1998 Draft Board Bylaws Early Nov. 1998 Development of Project & Financing Plan Early Nov. 1998 Organizational Board Meeting Mid Nov. 1998 Board of Directors reviews and finalizes: Late Nov. 1998 Project Plan Feasibility Studies Finance Plan First Reading Council approves final project and Financing Plan Dec. 1, 1998 Dec. 15, 1998 AGREEMENTS WITH OTHER .TURISDICTIONS/PRO.TECT AND FINANCING PLAN To Be Determined * Upon engagement, as a first task, this calendar will be reviewed and agreed upon with City staff as a guide to all work in establishing the TIF District.