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task would be done, if needed, to verify the reasonableness of the financial projections <br /> in the developer submittals to the RFP. <br /> Task 3b Financial Feasibility <br /> KMA will review the RFP submittals of the developer projections of development <br /> economics for reasonableness, including development costs — hard construction costs, <br /> soft development costs, and financing costs, the private investment supported (also <br /> based on a review of the developers' projection annual gross rental income and <br /> operating expenses for reasonableness), and the business proposal to the City. Based <br /> on current underwriting criteria and the projecYs income stream, KMA will test the <br /> reasonableness of the developer's ability to have a financially feasibility project and the <br /> proposed land payment. The product of this effort would be a memorandum with <br /> supporting tables. No meetings are expected with this task. <br /> Task 4: Selection of Developer for Exclusive Negotiations <br /> Based on the established criteria and our review of the proposals, KMA will advise staff <br /> on the strengths, weaknesses, and risks of each proposal. Inevitably there will need to <br /> be clarifications of the proposed business terms. Not all responses may fit into an <br /> "apples to apples" comparison. A specific product of this task is to understand the <br /> issues that need to be resolved with the preferred development team for development of <br /> the site(s) to move forward. KMA will assist staff in evaluating the proposals and <br /> selecting a developer with whom to enter a period of exclusive negotiations. This task <br /> anticipates meetings with staff, the subcommittee and the development teams (probably <br /> five meetings in totai). <br /> Task 5: Finalize Developer Negotiations and Legal Documents <br /> KMA will assist staff in refining and finalizing the documentation of the agreed upon <br /> business terms and assist legal counsel in drafting the documents, including the <br /> Development Agreement and the Purchase and Sale Agreement or Ground Lease. <br /> Perhaps one meeting is expected with this task. <br /> Task 6: Assist in Preparation of Staff Reports <br /> KMA will assist staff in the preparation of staff report, explaining the business terms, <br /> public benefits, and financial returns to the City. No meetings are expected with this <br /> task. <br /> Task 7: Participation in Public Meeting <br /> Upon staff's request, KMA will participate in the public meeting with the City Council <br /> related to the evaluation of the proposals and developer selection. <br /> ATTY/AGR/2012.017/KEVSER MARSTON BLOCK 2 DEPOT CIRCLE <br /> REV:02IOB112 <br /> Page 11 of 73 <br />