AgdaPkt 2020-10-12 Joint SA PFA - Laserfiche WebLink

Browse Search

6.D. - Page 14 of 16 EXHIBIT- A SCOPE OF SERVICES AND FEE Consultant will prepare fiscal or economic analyses to the City of Redwood City under the direction of the City Manager's office and the Community Development and Transportation Department. Consultant will provide on-call, project based services to analyze economic and fiscal impacts of development proposals, including proformas, community benefit packages, and other similar work as tasked. If applicable, the analysis would also include analysis of projected increase in project value compared to existing zoning. The time spent on these tasks will vary depending on the scale and complexity of applications submitted. The budget and schedule provided below are based on a community benefits methodology that Strategic Economics has used in other similar projects. The approach is summarized below, followed by an estimated schedule and budget to complete a typical report. • Kick-off meeting. Consultant will meet with the City and potentially the applicant to confirm the approach to the analysis, schedule, and deliverables. The kick-off meeting is an opportunity to request data such as: detailed information from the applicant/City on the development program; applicant estimates of development costs; and a list of recently completed comparable development projects. • Financial analysis to estimate community benefits. Consultant will perform the following analytical steps: 1. Estimate all development costs (except land cost) including direct construction costs ("hard" costs), indirect costs ("soft" costs such as development fees, permits and overhead), financing costs and developer return. It is assumed that the City would provide data on building permit and development impact fees. 2. Estimate the value of the project based on expected revenues from sales, rental revenues, or room rates; and 3. Calculate the residual land value for the base project and proposed project by subtracting total costs (Step 1) from total revenues (Step 2). 4. Measure the difference in residual land value from the proposed project and the base FAR project to calculate the value uplift from the increased density. • Fiscal benefits. If requested, Consultant will estimate the fiscal impact of new development projects to the City's General Fund. This would include an estimate of all local revenues from new development, including property tax, sales tax, transient - occupancy tax, and other revenues. Consultant will work with the Finance Department :a art1lra11VAIN1119M ATTY/AGR.2020.197/Strategic Economics (Page 11 of 13)