Title
Independent Project Review by Kane McKenna and Associates
History
The Ninety 7 Fifty Project has just completed its first year of occupancy. As part of the review of the project's performance, Village staff is recommending an independent evaluation of the Ninety 7 Fifty on the Park project and the redevelopment agreement on behalf of the Village. Kane McKenna and Associates, Inc. has provided a proposal to perform this evaluation. Kane McKenna is very familiar with the redevelopment agreement and are well suited to perform this work. This firm conducted an independent review of the Village’s redevelopment agreement (RDA) with Flaherty & Collins prior to Board approval of the RDA in September 2011.
The scope of work for the evaluation includes the following components:
1. Evaluation of project performance to the initial Developer and 9750 Project targets, such as absorption, rent rates, excess cash flow sharing
2. Evaluation of project performance against industry trends in the Chicagoland region based on review of files and other information identified by the Village and the Developer
3. Comparison and review of the 9750 Project related costs and schedule as compared to exhibits included in the redevelopment agreement
4. Identify areas in which the 9750 Project is exceeding, meeting or falling short of financial expectations based upon information made available
5. Overview and analysis of the aggregate tenant information with respect to average income, occupations, and age-banded ranges to better understand the typical tenant
6. Identification of key finance risk factors associated with future performance of the 9750 Project in relation to the redevelopment agreement requirements
7. Conceptual outline or examination of "early out" options for the Village if the Village wished to exit the project, including review with market professionals and/or financing sources identified by Kane McKenna.
The cost of this evaluation is estimated to be in the range of $8,000 to $10,000.
On July 7, 2014, this item was reviewed and approved by the Finance and Information Technology committee and referred to the Board for approval.
Financial Impact
$10,000 to the TIF Fund
Recommended Action/Motion
I move to approve an agreement with Kane McKenna Associates, Inc. to perform an evaluation of the Ninety 7 Fifty Project and the redevelopment agreement on behalf of the Village.