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HomeMy WebLinkAboutMO #2190MUNICIPAL ORDER NO. 2190 A MUNICIPAL ORDER AUTHORIZING A PROFESSIONAL SERVICES AGREEMENT WITH THOMAS P. MILLER & ASSOCIATES, LLC, IN AN AMOUNT OF $50,000 FOR DEVELOPMENT OF THE PADUCAH OPPORTUNITY ZONES MARKETING STRATEGY, AND AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT FOR SAME • ; 7:1•LIY:I�:Ti \'7� ]9[K�] ITI[.Y.Y[�l�l_�1:Z.Y�] 12119 CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: SECTION 1. The City hereby approves the Professional Services Agreement ("Agreement') between the City and Thomas P. Miller & Associates, LLC, ("Vendor") in substantially the form attached hereto as Exhibit A and made part hereof. It is further determined that it is necessary and desirable and in the best interest of the City to enter into this Agreement for the purposes therein specified. SECTION 2. The Mayor is hereby authorized to execute the Agreement, authorized in section 1 above. This contract shall expire May 31, 2019. No. DT0044. . SECTION 3. This expenditure will be charged TIF Application Project SECTION 4. This Order shall be in full force and effect on and after the date as approved by the Board of Commissioners of the City of Paducah, Kentucky. Z—VI'v4A� Brandi Harless, Mayor ATTEST: hln Lindsay Parish, City Jerk Adopted by the Board of Commissioners, December 11, 2018 Recorded by Lindsay Parish, City Clerk, December 11, 2018 \mo\agree-Thomas P Miller Opportunity Zones Marketing 2018 EXHIBIT A THOMAS R AIRLER a assocrnr s November 25,2018 Thomas P. Miller & Associates, LLC Professional Services Agreement This Agreement, entered into by and between The qty of Paducah ("alent") located at 300 South 511 Street, Paducah, Kentucty 42002, and Thomas P. Miller & Associates, LLC rCentractar"), located at 1630 N. Meridian St., Suite 430, Indianapolis, Indiana 46202. WITNESSETH THAT: WHEREAS, Olent has the need and desire to obtain the services of a contractor; and WHEREAS, Contractor desires to perform said services detailed in the attached 'Scope of Work for Client and is able to do so In a professional manner; and WHEREAS, Client has selected Contractor to perform these services, NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows: 1. TERM. The term of this Agreement shall be January 1, 2019 to May 31, 2019. 2. SERVICES TO RE RENOERED: Scope of Work as outlined in Attachment A: General Soope of Services. 3. COMPENSATION. Client shoil pay Contractor $50,000 (Inclusive of expenses) during the term of this Agreement for the satlsfactary completion of the services to be rendered. 4. PAYMENT TERMS, invoices wRl be submitted to Client: January 31, 2019 $101000 February 28,201.9: $10,000 March 31,2019: $10,000 Aprli 30, 2019: $10,000 May31,2019: S10.00O S. CLIENT'S OBLIGATIONS. Client shall provide Contractor, at no charge, all existing information, data, and documents, available and necessary farthe carrying out of services underthlsagreement. Client shall Cooperate with contractor Ineverywaypossible Incarrying out the scope of this agreement. Thomas A Miller & Assadcrtes, LLC G. TERMINATION. In the event that the services of Contractor are unsatisfactory or that support rendered by Client Is inadequate, either party shall have seven i7) business days after delivery of written notice of such unsatisfactory or inadequate services to rectify or correct the problem. if either party falls to correct the problem, either may terminate this Agreement with 30 days notice in writing, delivered to the business address of the ether party. Contractor shall be compensated for services provided to the date such termination becomes effective. 7. INDEMNIFICATION. Both parties shall Indemnify and hold harmiesseach other,, their respective officers, employees, and agents from any and all loss, liability, claims, judgments, and liens, including costs and expenses, arising out of any negligent act or omission of Client or Contractor or any of their officers, agents, employees, or subcontractors in the performance of this Agreement. a. CONFIDENTIALITY. Both Client and Contractor understand that information provided during the performance of this Agreement is confidential and may riot be disclosed to any person not connected with this project without prior approval. 4. NOTICE. Any notice,Invoice, order or other correspondence requiredto besent kinder this Agreement shall be sent to the addresses out[Ined in the first paragraph of this Agreement. Ia. APPLICABLE LAWS. This Agreement shall be governed by the laws of State of Indiana, as the same shall be In force and effect upas the d ate this Agreement Is executed. 11. NON-DISCRIMINATION. Contractor and Its subcontractors shall not discriminate against any employee or applicant for employmentto be employed In the performance of this Agreement, with respect to firing, tenure, terms, conditions, or privileges of employment, or any matter directly or indirectly related to employment because of race, religion, color, sex, age, handicap, disability; national origin, ancestry, disabled veteran status, or Vietnam-ara veteran status. Breach of this section shall constitute a material breach of this Agreement. 12. NECESSARY DOCUMENTATION. Contractor certifies that It will furnish alent,If requested, any and all documentation, oertiRcation, authorization, license, permit or registration required by the laws or rules and regulatians of units of local, state, and federal government. Contractor furthercerdflesthat ItIsnow Inand will maintain Its good standing with governmental agencies and will maintain its license, permit, registration, authorization, or certification Infarceduringthe term ofthis Agreement. Failure of Contractor to comply with this paragraph constitutes a material breach of this Agreement. 13, WAIVER. A contractar's delay or inaction in pursuing its remedies asset forth in this Agreement, or available by law, shall nat operate as a waiver of any of a contractor's rights or remedies contained herein or available by law. Thomas A hVier & Associates, LIC 14. PERSONAL LIABILl IY. Nothing in this Agreement shall be construed as creating any personal liability on the part of any officer, director, agency, or employee of Client or any public body, which may be a partyto this Agreement. 15. SEVERABILITY. if any provision of this Agreement Is held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, the provision shall be stricken, and all other provisions of this Agreement, which can operate Independently of such stricken provision, shall continue in full force and effect. 15. CONFLICT OF INTEREST. Contractor certifies and warrants to Client that neither it nor any of its agents, representatives, or employees who will participate In performance of any services required by this Agreement have or will have any conflict of interest, directly or indirectly with Client. 17, AMENDMENTS. This Agreement may be amended, modified, renewed, or supplemented only by a written instrument signed by each of the parties hereto, and any such amendment may pertain to one or more of the provisions of this Agreement without affecting the otherprovisions of this Agreement. 1& INTEGRATION. This Agreement tepresentsthe entire understanding between Client and the Contractor and supersedes all prior negotiations, representations, and/or contracts, either written or oral. 19. TAXES. Contractor agrees that itlsanIndependent contractor asthat term iscommonly used and is not an employee of Client. As such, the Contractor is solely responstblefor all taxes and none shall he withheld from the sums paid to the Contractor. The Contractor acknowledges that It is not insured by Client in any manner for any loss of any kind whatsoever. The Contractor has no authority, express or Implied, to bind or obligate Client in any way. IN WITNESS WHEREOF, Client and Contractor, by their respective officers hereunto duly authorized, have executed this Agreement on the dates shown below. Thomas P. Miller & Associates, LLC The City of Paducah By: W. Thomas P. Milier Brancil Hadess President & CEO Mayor Date: ^k`a Date: Thomas A Miller& Associates, LLC AT6ACHMEN4A GENERAL SCOPE OF SERVICES PROPOSAL FOR: OPPORTU N ITY ZONE INVESTMENT PREPAREDNESS STRATEGY SUBMl7ED 70: THE CITY OF PADUCA'Hr KY SOMITTED BY' +7Htlh,1h5 P. FdILLEA 7,;,s59ctea[5 Thornes A Miller & Associates, tl.0 STATEMENT OF QUALIFICATIONS Thomas P. Miller g. Associates (TA" envisions a world that thinks strategically, works collaboradvely, and acts sustainably. In keeping with that vision, we empower organizations and communities through strategic partnerships and informed solutions that create positive, sustainable change. Through over 29 years of business, we have worked with numerous nonprofits, economic and workloree development organizations, chambers of commerce, colleges and universities, and private businesses to more than 40 states. Our emphasis Is not Just on strategic ideas, but strategic leadership and Innovative, action arieMed goals — helping leaders to identify datwdriven opportunities and mobilize resources for Implementation. We take a collaborative approach to planning, recognizing that the greatest Impact is through transparency and the aligned goals of multiple stakeholders. We excel at tra misting completed research, analysis, and planning efforts Into Implamentasion activides tailored to the assets and opportunkies of each client, and we will utilize this strength to maximize this projeces value for Paducah, KY. PADUCAH OPPORTUNITY ZONE CONTEXT Opportunity Zones are economic development toots promoting investment In distressed communities through legislation enacted by the Federal Tax Cuts and lobs Act of 2017. Communities have had selected distressed census tracts designated as Opportunity Zones by the U.S. Department of Treasury, Incentivizing Investments to better address local needs in areas such as business growth, real estate Investment, and area Improvements. Kentucky has a total of 144 Opportunity zones In 94 counties. While each Opportunity Zone offers Investors the same federal capital gainstax advantages, all Zones are not created equal. it Is estimated that them Is Dear 23 trillon dollars in eligible capital gains eligiblefor investment — although only a percentage will actually be invested in Opportunity Zones. All Opportunity Zones will compete for Investment but some Zones will stand out immediately due to clear pro -investment market conditions. However, mostZonee,given theirdesignation as "dlstressed"will havetostrategicaly, pmitonthemselves to appeal to investors, Paducah has two Opportunity Zones (Orsl in the northern part of the city each with notable pro- investmentfeatures Including frontage along the Ohio River, adowntown c istdct, as well aslnduu,trialand residential land uses.'Ihesefeatures suggestthe OpportunityZoneshave the ability to supportand attract a diverse set of Investments. However, Paducah will likely have to compete for irnestment with large MSAs In the mId-vaest and south-east regions. Investors looking at Opportunity Zones may net consider or be aware of the advantages offered by Paducah's Zones. Furthermore, potential local investors such as business owners may not know how to take advantage of Opportunity Zone Incentives and the potential to assist with local expansion or capital investments. For these reasons, Paducah shouldconsider developing a plan or prospectus to tell the Cityvs story with a narrative that demonstrates the community's pro -Investment opportunities, with the goal of attracting Investors and new development. This prospectus will be developed through the approach described In the remainder of this proposal. TPMA proposes the following 2 -Phase approach to developing an Opportunity Zone Investment Preparedness Strategy for Paducah, KY. This approach will focus on data collection, land -use planning, workshops, identification of aligned Opportunity Funds, and creation of a marketing prospectus and a local leadership and business outreach strategy. Thomas P. Miller & Associates, ttdr PHASE l - ASSESSMENT Task One: Reclaw of Relevant Reports and Plans A review of all local pians and reports will be performed. Special attention will be given to land -use planning, public investments(past, present, andfuture), Paducah's Downtown Masterplan, and local and regional demographic and economic trends. This review will help to establish an initial context far the Opportunity Zones (04 regarding appropriate land use and lnvestmentconcepts.. Bask Two: OR -Site and Windshield Tour TDMA will conduct an on-site visit to assess existing Improvements (buildings, infrastructure, and roads) and identify underperrormingreal estate.7PMAwill complete a windshieldtourofPaducah's Opportunity Zone with City and Umnomic Development Leadership to visualize key opportunities and liabilities In the OZ that will inform an eventual investment strategy. While on-site, TPMA. will also facilitate up to four meetings with local government and/or business leadership to discuss the 02 incer6m and to identify priority development locations. An existing conditions analysis and asset map will be prepared that graphically describes the OZ.. Task Three: Existing Conditions Report Based an previous studies, windshield tour, and interviews with local'. leadership, the projectteam will assess existing Improvements lbuildings, Infrastructure, and roads) and Identify underperfarmtng real estate. This assessment will also explore community development and infrastructure Investment opportunities. The pmJact team will; 3) target businesses that are growing or demonstrate evidence of needing to upgrade their facilities and equipment, and 2) identify target areas or "prloetty pockets" that may be most Ilketyto leverage Opportunity Zone lnvestmem. Existing conditions,. targetedbusinessesand Identification of priority pockets will be lnformad by both primary and secondary business data that has been collected. The existing condnionssurvey will also rate the general real estate conditions within each of the Opportunity Zones, Paducah hastwo Ms each with differing compositions of Industrial, commercial, and residential property. Paducah's northwesters OZ Is predominantly residential development with some industrial in the northern part of the zone. The Southeastern zone includes parts of downtown Paducah which is characterized by commercial and residential development. The downtown area has been positioned for future investment given local planning a nd improvement efforts. The existing eDrul tions surveywill detail the make-up of each Olin a waythat demonstrates key land -use patterns and howtheycan be reinforced and/or modified to support future investment. After completing the assessment an asset map will be prepared thatgraphicallydescribes each Zone. Dalfverabfes: ExlsNngConditions and Asset Mop Bask Three; ).end-use Planning, Project A'lignmant & Ontrearh Following the completion of Tasks 1 and 2, TPMA will work with the City to align its current land -use planning in and adjacent to the Opportunity Zones to determine potential infrastructure, community development, business, residential, and commercial real estate Investment opportunities to market to prospective Ltevestam Thlsassessmentwllitake.Into accountthaithe Opportunity Zone program has time constraints that require Investmentsto be eiihershort term opportunities or capable of being expedited in order to align with investor requirements. The project team will, factor the city's zoning aswell as findings and observations from the existing conditions and asset map to form OZ land -use recommendations. Draft recommendations will be established which wilt identify a variety of project investments that will support the Citys economic and community development objectives. Potential projects likely will Include mixed income housing development, commercial retail development, Industrial facilities and Infrastructure improvements. The projects will be reviewedand prioritized by community leadership. Thomas P. Miller&Associates, LLC aaDvembir Opportunity Zone Land -use Overview andor*0ZPrajertLW ;rill Four - An OZ °OppnrtunRy Assessment ilaatkshop' Following the completions of tasks 1.3 a 2 -4 -hour workshop will be facilitated by the project team with local leadership. Theworkshopwill identify and prlortt[zethe business and project opportunitlesthat have emanated from the Assessment Phase, Strategies will be discussed on the key steps needed to realitethe desired Investments. potential local and non -local partners that may be able to contribute to the strategies will also beldemified. Theworkshop will discuss possible roles for the5tate of Kentucky to play In helping to activate the Opportunity Zone investment Strategies. € HASE 2 - INITIAL ZONE ACTIVATION Task Five:11pportunity Zone Business fdessagjng Prpgram Once the initial OZ assessment has been performed and the workshop has Identified and prioritized investment opportunities,a messaging program will be established. The project team will provide a PowerPoint presentation that City and Economic Development leadership can use to explain the benefits associated with the Opportunity Zone Program for local businesses and Investors. The presentation wilt detail key elements of the Opportunity2one legislation such as the caoital gains incentives, machanisms of opportunity funds, eliglble investments, and how the incentive can be specifically leveraged by local business ownersto liwest their own gains for improvement and expansion projects. The project team witl attend up to three presentations with local leadership assistingwith the presentation to the business and investor groups. The project team will also work with City Leadership to engage property owners and determine the availability of property for future land -use development as Identified In the ianduse overview from Task Three. Initial outreach will also foals an engaging property owners who may be willing to have their properties availableto promote developmentthat alignswlththe land -use overview. Propertyacquishten strategies will Lae outlinedIf appropriate. it Is important that the Cityworks where needed with property owners to demonstrate some form of site -control where possible to enhance project readiness and increase the Opportunity Zones' competitiveness to attract investment. The messaging program will Include meetingswlth targeted budnessesto encourage utitliation of the OZ Tool. The project team will use research from phase I combined with local leadership's knowledge to Identify businesses that am likely to expand or upgrade their operations. The project team will work to ensure that identified local businesses in expansion mode will receive the necessary Information to process and take advantage of the Opportunity Zone program. The project team will, attend up to a half dozen meetings with. Individual businesses as part ofthis process, Dellmrobfesc Opportunity Zone Business and Project Inventory A Opportunity Ame Presentatfan Task Siit: Aligned Opportualti: and IdertifiLation Nationally, there will be entities that have organized Opportunity Funds by soliciting multiple investors wishing to take advantage of the OZ program but not wanting to search for theirpreferred Investment type. The projectteam will provide a Ilst of eni ttlesthat have formed an Opportunity Fund that allgnwlth the types of investment in Paducah's Opportunity Zones, This list can be used by city and Economic Development leadership to direct outreach efforts and drive investment. The project team will also work with City Leadership to explore the creation of a local fund(s) formed by local business people. A description of possible local funds will be Included along with the final list of aligned Opportunity Funds. Defiv mbiea Opportunity Fund List Task Sw= Opportunity Zane Wrketlnlq pfuspeettis The project team will create a marketing prospectus designed to construct a compelling investment story about PaducaWs Opportunity Zones to potential investors. The prospectus will provide Clear and concise evidence that Paducah has a well-canceived plan for is Opportunity Zones, designed to optimize ThOMDS A Miller & AssOtiates, LLC outcomes for both Investors and the focal community. The prospectus will serve as an engagement tool that leads to concrete Interactions with Opportunity Zone investors. Oeirverablea OpportunMy tone marketing Prospectus Technical k5istance The project team will provide technicalassistance to Catty and Economle Development leadership as needed throughout the project. Members of the project team will be available on call for up to 30 hours to provide assistance, recommendations, or advice throughout this project. BUDGET & TIMELINE It is anticipated that this project will have a 150 -day timeline with a total cost of $50,000, Phase I will be completed in approximately, 60 days and Phase N will span an additional 90 days. A 150 day timeline is critical to this project because the majority of Opportunity2one Investment VAR occur tidare December 31st, 2019 as Investors cannot reatixe the ful l benaflts of the program on Investments made after 2039.