R-03-06 01/09/2006RESOLUTION f . 03 -(4,2
A RESOLUTION ENTERING AUTHORIZING THE VILLAGE ADMINISTRATOR
TO ENTER INTO AN AGREEMENT WITH
EHLERS & ASSOCIATES INC. FOR A PRO FORMA ANALYSIS
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND MEMBERS OF THE BOARD
OF TRUSTEES OF THE VILLAGE OF LEMONT, COOK , WILL & DU PAGE COUNTIES, ILLINOIS
that:
Section 1: The Village Administrator is authorized to execute the Proposal with Ehlers & Associates, Inc.
attached hereto as Exhibit "A ".
Section 2: Effective Date: This Resolution shall become effective upon passage, approval and publication, in
Book and Pamphlet form as provided by law.
PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF LEMONT, COOK, WILL AND DU PAGE COUNTIES ILLINOIS on this
Day o? , 2006
Debby Blatzer
Peter Coules
Brian Reaves
Cliff Miklos
Ronald Stapleton
Jeanette Virgilio
Atte
AYES NAYS PASSED ABSENT
JOHN F. PIAZZA, Village
,.0
sident
ARLENE SMOLLEN, Village Clerk
January 3, 2006
Tim Schloneger
Assistant Village Administrator
Village of Lemont
418 Main Street
Lemont, IL 60439
EHLERS
& ASSOCIATES INC
Dear Mr. Schloneger,
Ehlers & Associates is pleased to respond to your request for proposal as follows:
1. Background and Project Purpose
Ehlers & Associates has been requested to provide a proposal for the following:
1.1 Pro Forma Analysis of Marquette Companies proposed downtown Lemont
redevelopment project. Based on our discussion with the Village of Lemont we
understand the purpose of this analysis will be to assess the financial feasibility of this
project and to serve as a basis for evaluating the level of public assistance required to
provide the developer with a reasonable rate of return.
2. Scope of Services
2.1 Pro Forma Analysis - A pro forma analysis is a review of the projected financial
performance of a specific business enterprise. In this case a developer will be investing
funds with an expectation of profit to be generated from operations (lease revenues) and
sales of residential properties. Ehlers will undertake an independent review of the
developer's plan to assess financial feasibility and to identify the "gap ", if any, between
projected performance and performance required to achieve a reasonable rate of return.
The steps required for this analysis include the following:
1. Review existing developer information. Given the advance stage of this project
it is likely that the developer will have most, if not all, of the required financial
performance data required for this analysis. Ehlers will request an opportunity to
review this data and meet in person, if appropriate, to clarify any data requests.
2. Conduct comparative analysis. Ehlers will review significant financial
components (land, construction and financing costs, projected lease and sale
revenues) with industry and market standards.
3. Review and verify property tax parcels and base captured values for the
proposed project area.
LEADERS IN PUBLIC FINANCE
550 Warrenville Road, Suite 220
Lisle, IL 60532
630.271.3330
fax 630.271.3369
www.ehlers - inc.com
EHLERS
& ASSOCIATES INC
4. Review and verify projected values for the proposed development including
market absorption rates (with assistance of independent market analysts).
5. Prepare independent (or review and verify) estimates of assessed market value
for tax purposes.
6. Review and verify estimated school contributions as required by State Statutes.
7. Review the reasonableness of estimates for projected growth in values for new
development (after construction).
8. Prepare independent tax increment projections.
9. Review proposed debt service schedule and structure. Analyze debt service
schedule and structure in relation to the tax increment projections.
10. Review public improvement costs required for development.
11. Review preliminary findings with developer. This provides an opportunity to
verify analysis with developer and make any final adjustments as needed.
12. Prepare and present final summary report. The report will provide findings of
financial feasibility and recommendations to further the project to
implementation.
3. Cost of Services
3.1 Pro Forma Review. The base cost of pro forma analysis is $12,500 including
expenses. This fee includes analysis of data made available by developer, preparation of
tax increment projections, two meetings with the developer, two meetings with
staff/board, analysis and preparation of final report. If base data is not supplied by the
developer or if additional meetings are required Ehlers will bill on an hourly basis of
$175/hour. Ehlers will request authorization from client prior to commitment of
additional expenses.
4. Project Schedule. Ehlers understands that timing for completion of these projects is critical
to the success of this project. Every effort will be made to complete the projects as soon as
possible. However, significant portions of the work require data and cooperation from others
outside of the control of Ehlers.
4.1 Pro Forma Analysis. The initial analysis should be completed within 60 days of
authorization assuming cooperation with the developer.
LEADERS IN PUBLIC FINANCE
550 Warrenville Road, Suite 220
Lisle, IL 60532
630.271.3330
fax 630.271.3369
www.ehlers - inc.com
EHLERS
& ASSOCIATES INC
5. Proposal Assignments. The project manager for these services will be Jim Prosser. Mr.
Prosser serves as the Illinois Office Team Leader. Specific project assignments are as follows:
5.1 Pro Forma Analysis. Jim Prosser will be lead Financial Advisor and will be assisted
by Sid Inman and Ken Stanish.
Ehlers & Associates understands that each community has unique needs relating to
achieving their redevelopment objectives. This proposal has been prepared based on our
experience with other client communities. If there is a need to adjust this proposal to
meet the specific needs of your community please contact us.
Ehlers & Associates looks forward to the opportunity to work with your community on
this project.
Sincerely,
Jim Prosser
Executive Vice - President
LEADERS IN PUBLIC FINANCE
550 Warrenville Road, Suite 220
Lisle, IL 60532
630.271.3330
fax 630.271.3369
www.ehlers - inc.com