Agmt16 Keyser Marston Associates, Inc.

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EXHIBIT "A" SCOPE OF SERVICES Keyser Marston Associates (KMA) analysis will be based on a peer review of the 801 Brewster Developer's pro formas for the following four project alternatives: 1 ) Base project at 100% market rate and payment of affordable housing fee; 2) Base project with BMR units; 3) Density bonus project without height concession; 4) Density bonus project with height concession (proposed project) In order for the requested concession to be justified under the State Density Bonus Law, the incremental value that the Developer can achieve from the concession should be commensurate with the costs of developing the BMR units. Task 1. Review of Building Alternatives It is assumed that the Developer will be providing conceptual-level plans for both a base case zoning alternative as well as the proposed project. It is assumed the submittal will include a basic site plan and floor plans for each alternative as well as programmatic data including the number of units, unit sizes, parking spaces, etc. KMA will review these plans to assess the overall marketability of the units under the two alternatives and as a basis for estimating development costs and rental rates. Task 2. Pro forma Analysis In order to analyze the incremental value that could be achieved from the density bonus and concession, KMA will peer review the pro formas submitted by the Developer. It is assumed that the pro formas will include the all-in costs to build the project alternatives including land acquisition, direct construction costs (labor and materials), all indirect (soft) costs of development, and financing costs. The pro formas will also include the calculation of net operating income at completion and determine the project's value by applying current market capitalization rates. The incremental value from the density bonus and height concession is the difference between the capitalized value of the base case project alternatives and the proposed project. From the analysis, KMA will assess whether the height concession is justified per the State Density Bonus Law. Task 3. Meetings Included in the proposed budget for this assignment is attendance at one Planning Commission meeting to present the findings and answer questions. All other discussions (with City staff or with the Developer) can be done via conference call or e-mail. KMA would be happy to modify the budget if additional in-person meetings are desired. Page 9 of 11 REV: 10-14-16 VR ATTY/AGR.2016.298/Keyser Marston Associates