AgdaPkt 2004-10-11 - Laserfiche WebLink

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Co·1 Y·2 Once the developer, Western Innisfree Ventures, was selected, KMA became an essential resource to staff involved with the negotiations for the Disposition and Development Agreement (DDA). The negotiation process was time intensive and KMA continually analyzed the financial parameters and advised staff accordingly until a DDA was negotiated. As part of their service to the Agency, KMA prepared a "Reuse Valuation Study" I which is an analysis of the proposed offer and what the Agency is getting for what it is giving. This report was presented to the public and the Agency Board as part of the DDA approval process. WhY This Amount and This Form of Aareement? The Agency has typically had what is termed a 'not to exceed' agreement with KMA. The agreement has specified a dollar amount, which cannot be exceeded without seeking further Board approval, but staff has assigned the specific services performed under the agreement, as the different projects have evolved. This has provided the ultimate cost control to the Board but has allowed a considerable flexibility to staff to assign the consultant's services to whatever projects are then most active. Based on the average cost for KMA over the last two years, staff has suggested an additional 'not to exceed' cap of $100,000 to provide sufficient ,funds to essentially keep KMA 'on retainer' for whatever projects emerge over the next 6-12 months. It is important to emphasize that under this form of agreement, staff provides KMA with an authorization to expend on a particular activity; and that without such authorization. no ~ funds are spent. What Other Proiects? KMA continues to work with staff in leasing issues and options related to the Retail/Cinema Project. In addition, they are reviewing and analyzing proformas related to the Vera/EI Camino project as well as proposals related to market-rate housing in the downtown core. They will be completing the affordable housing strategy as well as writing the new five~year Implementation Plan for the Redevelopment Agency, which must be considered by the Agency Board in a public hearing before the end of the calendar year. They will also be involved in reviewing the financial feasibility of various options related to the Bradford Street site as that project moves forward in the next year. This contract amendment will also ensure that KMA services are available when unforeseen opportunities arise in relationship to unsolicited proposals or development interest in the redevelopment areas. Fiscal Impact Funds are appropriated for professional services in the 2004~2005 Agency budget sufficient to fund this second amendment to the agreement. Because we anticipate more activity in housing, the Agency Housing budget will fund $75,000 and the Agency general budget will fund $25,000. As proposed, this agreement would continue into the next fiscal year and would come back to the Agency Board for further action when the not~to~exceed cap has been reached. At that time the agreement would require another amendment if KMA services were still needed.