R2008-168 AUTHORIZING REIMBURSEMENT FOR CONSULTING SERVICES

Home Browse Search

ECONOMTC AND URBAN DEVELOPMENT MEMORANDUM Memo No. 08-136 October 15, 2008 TO: Honorable Mayor Michael T. Carrigan and City Council FROM: John A. Smith, Interim City Manager Greg C. Crowe,Assistant City Man ger of Economic &Urban Developme� SUBJECT: Wabash Crossing Phase III Consulting Services SUMMARY RECOMMENDATION: It is recommended that the City Council approve the attached resolution reimbursing Signature Development $34,624.52 for professional and legal consulting services to complete the M�ed Evidentiary Closing Submission with HUD Wabash Crossing Phase III. BACKGROUND: The City Council approved a professional services contract with Signature Development on December 5, 2005 in the amount of $200,000 for Phases II and III of Wabash Crossing. Due to the amount of mixed evidentiary documents required for revision and review, the services provided exceeded the contract amount by $34,624.52. As you can tell by the final invoice the services exceed the approved contract in the final months of the closing. All of the documents were finalized and executed for the closing far Phase III on September 17, 2008. Due to the national credit crisis Apollo, the Phase III Low-Income Tax Credit Syndicator, was unable to sell the tax credits which were accounting for $8.5 million in financing on the day of the closing. The closing has been delayed now while we wait for Apollo to fmd a buyer for the tax credits. No further consulting services will be required if a buyer is found since the documents have already been executed. City staff will keep the Council upda.ted on the status of the Phase III closing. INPUT FROM OTHER SOURCES: N/A POTENTIAL OBJECTION: N/A STAFF REFERENCE: Any additional questions may be forwazded to Greg Crowe at 424-2727 or at crowe(a�decaturil.�ov. BUDGET/TIME IMPLICATIONS: The additional cost of the professional services will be paid from the previously approved$103 million dollar investment obligation for Wabash Crossing.