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HomeMy WebLinkAbout130225 ToV Timber Ridge - Consilium Proposal-FinalProposal for Timber Ridge Redevelopment Feasibility Analysis and Town Representation Services February 25, 2013 1738 Wynkoop Street, Suite 302 Denver, CO 80202 Contact: Chris Penney, Senior Project Manager PH: 970.471.6763 Email:cpenney@consiliumpartnersllc.com © 2013 Consilium Partners, LLC -2 - George Ruther Director of Community Development 75 South Frontage Road West Vail, CO 81657 Dear Mr.Ruther, Thank you for the opportunity to provide this proposal to assist the Town of Vail in reviewing the feasibility of the proposed Timber Ridge Redevelopment project.We have a breadth of experience in reviewing construction cost estimates and development proformas, including the 2009 Timber Ridge RFP analysis.As both a drafter and reviewer of real estate development pro- forma, I am keenly aware that a slight change to any number of assumptions can have a dramatic effect on the bottom line.We are confident that we can assist the Town of Vail by identifying potential risks and mitigation options while promoting a successful redevelopment. It is our understanding the Town of Vail is negotiating a land lease arrangement to allow a team to redevelop the Timber Ridge site. The “Developer” consists of Wright & Company, Gorman USA, R.A. Nelson, Alpine Engineering, and Hans Berglund. Based on our understanding of your needs, we are submitting the proposed scope and fee below.We pride ourselves on tailoring our proposals to meet the exact needs of each client, so if additional or alternative services would better suit your requirements, please let us know and we would be happy to modify the proposal accordingly. Timber Ridge Project Economics Analyses: 1.It is assumed that the following scope of work will be completed between 3/1/13 - 5/31/13. 2.Review the Developer’s construction cost estimate,to advise if it is complete and the assumptions are reasonable. 3.Review the Developer’s revenue projections,to advise if it is complete and the assumptions are reasonable. We will compare absorptions rates, occupancy rates, rent rates, and sales value (if applicable)to local historical data. 4.Review the Developers operating budget,to advise if it is complete and the assumptions are reasonable. 5.Review the Developer’s cashflow projections resulting in the financing cost estimate,to advise if it is complete and the assumptions are reasonable. 6.Review the Developer’s proforma package for accurate inclusion of the above items. -3 - 7.Discuss and understand financing options (if any) being considered by developer. 8.As a result of the document review process,assist the Town in identifying areas of potential risk and possible mitigation options. 9.We understand there may be several iterations,of the documents identified above,for review.We anticipate reviewing two iterations of each document. If additional review cycles become necessary, our proposed fee may need to be supplemented with hourly work. 10.We will prepare a final report at the conclusion of the final review cycle. 11.Prepare for and attend up to five (5)meetings with the developer and ToV to remain familiar with the project and the proposed arrangement. 12.Prepare for and attend up to five (5)Town Council meetings to present deliverables and/or remain familiar with the project and the proposed arrangement. 13.Regularly communicate with George Ruther and/or Stan Zemler to keep them abreast of our results. BASE FEE: We are pleased to offer the services listed above for a lump sum fee of $4,000.00 per month ($12,000.00 total), excluding reimbursable costs. ADDITIONAL SERVICES: If additional hourly work is requested by the Owner, the hourly rates for our team are as follows: Team Member Hourly Rate Managing Partner $115 Senior Project Manager $100 We would also recommend the option of developing a lump sum fee for any requested additional services. Depending on the additional services requested, this approach often yields superior value to our clients. -4 - STANDARD PROPOSAL PROVISIONS: 1.The Client agrees to indemnify, defend, and hold Consilium Partners harmless against any and all actual or consequential damages in excess of the fees herein, as well as any actions, causes of action, fines, costs and claims arising out of or in any way relating to this project not the result of willful misconduct or gross negligence by Consilium Partners. 2.A signed proposal or contract will be required prior to Consilium Partners beginning work. 3.Client shall pay Consilium Partners within ten (30)calendar days of the submission of each invoice. All unpaid balances outstanding at the end of ten (30) calendar days shall be assessed a 1% processing fee. A 1.5% late fee will be assessed in addition to the processing fee for each 30 days of delinquency (18% annually). 4.The above fees do not include reimbursable expenses, which include shipping costs, printing costs, parking, and mileage. All reimbursable costs will be billed at cost (no mark-up). 5.The agreement may be terminated for the following reasons: a.Suspension or abandonment of project by Owner; b.Consilium Partners does not perform the work included in the Base Scope of Services in accordance with industry standards; or c.Timely payment is not received by Consilium Partners for Base Scope of Services rendered. 6.Both parties subject to this agreement shall notify the other in writing if contemplating termination of the agreement. If the cause of termination is either 5b or 5c above, twenty (20) business days from date of notification shall be allowed for the notified party to correct the non-compliance with the agreement. Correction of non-compliance within the allotted time shall preclude grounds for termination. 7.In the event that the Owner suspends the project,this agreement may also be suspended for a like period of time. A suspension greater than thirty (30) calendar days will allow for equitable adjustment to fees upon the resumption of the work. In the event that suspension or termination of the project occurs through no fault of Consilium -5 - Partners, Consilium Partners shall be entitled to all costs of work completed to the date of the notice of suspension or termination and all costs associated with work scheduled for the following thirty (30) business days. 8.It is important to note Consilium Partners will be providing construction industry knowledge and experience, but will not be providing legal expertise. The Owner will need to have its counsel review the contract during negotiations and prior to execution. 9.Fees represented in this proposal are valid for thirty (30) calendar days. Mr.Ruther, thank you again for your consideration. We believe Consilium provides an ideal mix of commitment, experience and location specific knowledge to add great value to your project. If you have any questions with our proposal, or if it could be modified in any way to better meet your needs, please do not hesitate to contact me. Sincerely, Chris Penney Senior Project Manager Consilium Partners, LLC Phone:970.471.6763 cpenney@consiliumpartnersllc.com On behalf of ____________________, I ____________________ authorize the above proposal. ___________________________________________________ Title:Date