Loading...
HomeMy WebLinkAbout10-15-07 Special Mtg Item 4A TCAAP Housing Study ~ ~HlLLS Request for Council Action Prepared By: SK Oept.: -...AdmTnlstratlon----- " Council Mtg. Date:--.---"----O~t,(),b~T_1__5.,_2_00T Final Action Needed By: . NJA"" ...... -, ------------- Agenda Item: Approval of Maxfield Research to Conduct TCAAFq.:joushli~-Study ---- Budgeted Amount: m ______ _ __:..____ .. $0 Actual Amount: $17.945- Funding Source: --- --------Generaf'F'i.Jr,-a" 4.A. Motion to Approve Contract for Professional Services dated 8/20/07, Including a Proposal to Conduct of Housing Demand for the TCAAP Site in Arden Hills, Minnesota, in the amount of $17,945, the Mayor to sign. recommends approval of the contract with Maxfield Research Inc_, for the housing portion of the N/A N/A X Memo/Letter: Memorandum from Stacie Kvilvang, Ehlers and Associates, dated 10/15/07. No.: No.: ....................... Recommendation: Recommendation: ........... Other: X Proposal and Contract for Professional Services from Maxfield Research, Inc., dated 8/20/07 . EHLERS LEADERS IN PUBLIC FINANCE o :E w :E To: Michelle Wolfe - City Administrator City Council From: Stacie K vilvang - Ehlers & Associates Subject: Housing Market Study Date: October 15, 2007 In August the City Council directed staff to seek proposals from firms to assist the City in potentially completing a market study for the proposed residential and commercial development in TCAAP. Staff received proposals from the following three (3) firms: I. GV A Marquette Advisors - Complete residential, office, retail and hotel analysis 2. Maxfield Research - Complete residential, office and retail analysis; and 3. McComb Group - Complete office and retail analysis only The City Council appointed a sub-committee of the Mayor and one Council Member to review the proposals, determine if both a housing and commercial study should be completed and to recommend which firm to contract with to complete the work. On September 14, 2007, the subcommittee received copies of the proposals and a chart summarizing them for comparison purposes. On October I, 2007 the Council subgroup and staff discussed the proposals and determined to only move forward with a market study for the housing portion of TCAAP at this time based upon: 1. Ryan is a commercial developer and the City can request to review their internal or external market study to determine if they agree with the conclusions, rather than expending City funds at this time to duplicate something that may not be necessary; and 2. Since Ryan will not be developing the housing portion of the site, the City needs to have an independent study completed to assess the potential housing market for the site On October 3, 2007, the subcommittee and staff interviewed Maxfield Research and GV A Marquette Advisors. Based upon the interviews, the subcommittee is recommending moving forward with Maxfield Research. Please contact me at 651-697-8506 with any questions. cc: File Arden> Hills Market Study Evaluation of Proposllls . Sllptember 14, 2007 Team Members Public experience Other Client ""penence (developer, property owner) Number Of Client Meetings Scope Of Services Work Product CostforHousing;Study Cost of Hotel Study Cost of Commercial/Office Study Cosltor Combined Study Payment Of Contract. Rtcky Wong. Assistant VP . Provide researdh-assfstance_.:....4..Ye:-arsEXperlence FfC1l1ce&Excel$!PfB()UI~V~Jcf"St.Louis Park, Sherbume County. Hotel Development - Hastings HRA, Mixed-Use Development - Fridley HRA Redevelopment - St. Louis Park, 494 & Penn.,;,Richfield;OO-wrltOwflMixedUse> Apple Valley 3 Additional meetings billed at hourty rate ot $2501hr for Brent Wittenberg and $175Ihr for Ricky Wong Market Area Definition and Site A.Ss~~irlerit"-'l)lW1o_gr:aphlc.':~n'd'~Q6nQJ'rli9 Dala Analysis, Employment Trands, Housing Markel Analysis (for-sale, renlal. senior). and Review of Trade Areas and Market Conditions Bound MarkeLStudy (Provide.5 Copies, plus eleclronic copy). Additionatoop:ie$ 'atcost'tocl~rit $25,000 $15.000 $15,000 $45.000 (plus expenses) $35,000 If hotel study is nol needed Mary Bujold. Presldi'nt. PrYjeclc Manager Who Will OV6"rsoo Work .20 Years ExperIence Jay Thompson. VP - Principal Analyst for Prolect - 11 Years experience Ryan Bergman - Research Anaiyl>l- Provkle Dala Gathering - 2 Year. EXperience' peny Nguyen - Intem Cedar Grove Redevelopment - Eagpn. Downtown Rosemonl - Rosemonl. Highway 7 Corridor. HUlchlnson NlA 3 Additional meellngs billed at $1501hr for 1 Maxfield pel$On attending and $200lhr for 2 people from Maxfield attending Site "valuation, Demographic Anatysis. "mpioymenl Trends, Housing MarketAnalysis (for-sale, renlal, senior), and Review ofTrade Areas and Market Cond~ions Bound Market Study (Provide l; Copies, plus electronic copy). Addillonal copies at caslto client. $17 ,94l; Do'not re-viewhotels $15.000 $29,940 (plus expenses) 50%oftolal fee to lnitiateengagemenland Paid mOhlhlY based upon completion balancedueupen delivery of reporl 6fwork Linda AsSOciate- Conduct Market Rilsellrch, demogl)!lphicarn:! ronsum... analysis Lori Hoffman - Assoclate,- Compeff!lve Evaluations. demographic and markel research 5...~a~'~!I~I1Q..~,9'()l'lsuJ~nt:-- Oernographic and markel .r_J:itcf) MN Sports. Retail and E:ntertalnment Cenler - Blaine. Brookdale Center - BrOOklyn Cenler, Soulheaie Cenler - "dina, Rosedale Center - Rosevllle, Etc. Multiple 4 Additional meetings billed at pluse f for E:>\ecutive for Senior Associates. S1000lhr of AsSOOIates and $75-$100lhr for Conswlanl. Re1all and office Market Analysis, Residential Growth Trends. Competitive ShoWing Areas, Trade area Analysis. DeYelopment Potentlal, HlslorIc Office-and OfficelShoWrQI)m Absorpt!on and Demand, Deve!oper!1lroker (ntervlews and Employment Growth Didn't provide information but would anffcipa\e it would be!t bound copies and an electronic copy NlA $43,000 NIA 50% of total fee to inltiate engagement and blUed mid-month ::atJi':f O1O:oth;;.end'$ :vvj)rk progresses Propo Housin TCAAP to ct An Analysis of nd Commercial Demand for ole in Arden Hills, Minnesota Prepared for: City of Arden Hills Arden Hills, Minnesota August 2007 xfield Research Inc. 615 First Avenue NE Suite 400 Minneapolis, MN 55413 612.338.0012 www.maxfieldresearch.com August 20, 2007 Ms. Michelle Wolfe City Administrator City of Arden Hills 1245 West Highway 96 Arden Hills MN 55112 Dear Ms. Wolfe: Thank you for contacting Maxfield Research Inc. to provide a proposal to analyze the potential demand for various housing products and commercial space that would be located on the TCAAP site in Arden Hills, Minnesota. We would be delighted to work with the City of Arden Hills on this important property. \,.{ ." As we understand, the City is interested in evaluating a proposed redevelopment plan for the Site that would incorporate for-sale and rental housing of various building types and densities in addition to com- mercial retail and office space. Maxfield Research Inc. has reviewed the proposed redevelopment plan in addition to the TCAAP Master Plan and has prepared a work program and associated costs to complete the market analysis. The attached work program presents our understanding of the project, a scope of work tasks required to evaluate the market potential to support the proposed development plan as submitted by Ryan Companies. As provided to us, the proposed development plan calls for a variety of single-family homes on varying size lots and a variety of for-sale multifamily products. Also proposed are rental apartments and senior housing, which may be owned or rental. Included with this proposal is additional background information on Maxfield Research Inc., its work and services along with resumes of staff that would be assigned to this project. Additional staff that may also be assigned to this project include Ms. Peny Nguyen, a graduate student in economics at Hamline Univer- sity. Ms. Nguyen may be asked to complete tasks associated with gathering base demographic and eco- nomic information pertinent to the analysis. Please review the attached document. If this agreement meets with your approval, please sign and return one copy of the agreement to us. Please contact me if you have any questions about the proposed work program or if you need other information. I would be the primary contact and Project Manager for the completion of this analysis. You may contact me at (612) 904-7977 if you have any questions about the proposed work program or if you need any otb- er information. You can also email meatmbuiold(Ulmaxfieldresearch.com. 612-338-0012 (fax) 612-904-7979 615 First Avenue NE, Suite 400, Minneapolis,!v1N 55413 www.maxfieldresearch.com "eld Rtffl~a'rcb.tnc; August 20, 2007 Ms. Michelle Wolfe City Administrator City of Arden Hills 1245 West Highway 96 Arden Hills MN 55112 CONTRACT FOR PROFESSIONAL SERVICES Maxfield Research Inc. proposes to provide market research and consulting services to the City of Arden Hills to complete a market analysis that would determine the depth of market demand for various residential and commercial products to be developed on the TCAAP Site in Arden Hil!s,Minnesota. The analysis will test the proposed preliminary development program as submitted by Ryan Companies. The program includes a variety of for-sale and rental housing along with commer- cial retail and office space. Maxfield will determine an appropriate draw area or draw areas for the proposed development components, gather and analyze information on growth trends and demographic characteristics of the draw area populations, analyze competitive developments and current market conditions along with pending projects to assess the potential for the properly to absorb the proposed components. Maxfield will review the development program and will pro- vide detailed recommendations for the housing (number ofunitsllots; unit mix and sizes; pric- inglrents; housing features and amenities, etc.) and commercial (square footage, floorplate sizes, features and amenities, tenant mix-retail) identified as being needed in the short-term. Addition- al information will be provided regarding a long-term development strategy and timing of subse- quent phases of the development. We will recommend products that may be developed simulta- neously to optimize absorption. METHODOLOGY The hallmark of Maxfield Research Inc.'s approach to all projects includes the appropriate blending of primary (field) research with secondary research. Primary research includes surveys of existing housing properties, one-on-one interviews with major employers, developers, build- ers, Realtors, city and government agency staff, and others familiar with housing issues and the local housing market. Secondary research includes data obtained from reliable published sources including the Census Bureau, Claritas, Inc. (a national demographics firm), and State demo- graphic and labor force departments. 612-338-0012 (f""l612-904-7979 615 First Avenue NE, Suite 400, Minneapolis, MN 55413 www.maxfieldresearch.com Ms. Michelle Wolfe City of Arden Hills August 20, 2007 Page 4 Secondary published data is always reviewed carefully in light of other local factors revealed through the primary research that may have an impact on the analysis. The result is a custom analysis that provides the Client with information that is timely and locally pertinent. A detailed Scope of Services on the following pages outlines the specific tasks we will undertake to complete the analysis. RESEARCH STAFF Mary Bujold, President of Maxfield Research Inc., will serve as Project Manager for this study. Mary will oversee the work program and review all work completed for the project. Ms. Bujold has over twenty years' experience in residential and commercial market research and is regarded as an expert in the field of residential real estate. Mr. Jay Thompson, Vice President, will serve as the principal analyst for the project. Mr. Thompson will be responsible for conducting a large portion of the fieldwork associated with the project, including interviews and data collection, along with analyzing the data, preparing the conclusions and recommendations, and compiling the written report. Mr. Thompson was the lead analyst on several recent comprehensive housing studies, including studies completed for the Cities of Albert Lea, Austin, New Ulm, Marshall, Owatonna, and Vermillion, South Dakota. Mr. Ryan Bergman, Research Analyst, will provide data gathering and analysis services for this project. Mr. Bergman will be responsible for compiling demographic data and gathering market information for the various types of housing. Mr. Bergman has worked on a wide variety of res- idential housing analyses during his time with Maxfield Research Inc. Individual bios of the project staff are included at the back of this proposal. Ms. Peny Nguyen, graduate economics student and full-time intern with Maxfield Research Inc. will also provide assistance with gathering and compiling data for the residential and commercial components of the analysis. SELECTED STUDIES / REFERENCES Analysis of Redevelopment Plans for Cedar Grove Redevelopment Area in Eagan, Minnesota Maxfield Research Inc. was engaged by the City of Eagan to review current redevelopment plans for the Cedar Grove area of Eagan, an area that has been targeted by the City for substantial re- development. The Cedar Grove area is considered to be a "gateway" into the City. The City re- quested that Maxfield Research Inc. review the original redevelopment plan and assess current market conditions and timing for retail, office, hospitality and multifamily housing in the Cedar Grove area. Analysis and recommendations focused on the ability of the City to attract certain types of land uses in the Cedar Grove area, the potential timeframe for redevelopment and mar- MAXFIELD RESEARCH INC. Ms. Michelle Wolfe City of Arden Hills August 20, 2007 Page 5 ket and financial constraints to achieving the redevelopment plan. Initial analysis completed September 2003. Update analysis completed April 2007. Client: City of Eagan Contacts: Mr. Jon Hohenstein, Dir. of Community Development, City of Eagan, (651) 675-5660 Assessment of Market Potential for Downtown Rosemount, Minnesota Maxfield Research Inc. conducted a market analysis of the potential demand for retail, office and housing in Downtown Rosemount, Minnesota. The area analyzed included Rosemount's older main street area as well as an assessment of the competitive impact of development along Coun- ty Road 42 in Rosemount and extending west into Apple Valley, Minnesota. Maxfield quanti- fied demand for each of the above components and provided recommendations regarding appro- priate types of uses as well as the level of housing development that could be supported in the Downtown district. Initial analysis completed February 2002. Update analysis completed Janu- ary 2004. Client: Contact: City of Rosemount Mr. Jamie Verbruegge, City Administrator, (651) 322-2020 Assessment of Market Potential for the Highway 7 Corridor in Hutchinson, Minnesota Maxfield Research Inc. in a joint venture with Landform Inc. (consulting planners) completed a market analysis regarding the development potential for land bordering Highway 7 in Hutching- son, Minnsota. The primary objective of the market analysis was to provide the City with a mar- ket-based analysis to support future land uses changes and redevelopment opportunities along the Highway 7 Corridor. This analysis provided the following: I) demand calculations for various real estate types; 2) types of businesses that would be attracted to and supported within the development along with appropriate building types, lease rates, and space requirements; 3) projected development time- frame; and 4) synergies among various types of development within the Highway 7 Corridor Study Area. Our work approach combined market, economic and land use analysis with substantial informa- tion and input from field work, market interviews and other planning and statistical work. Anal- ysis completed in July 2007. Client: Contact: City of Hutchinson Ms. Rebecca Bowers, Planning Director, (320) 234-4258 MAXFIELD RESEARCH INC. Ms. Michelle Wolfe City of Arden Hills August 20, 2007 Page 6 SCOPE OF SERVICES-Residential Component A. Site Evaluation I. Based on the proposed master plan and preliminary development program, complete an evaluation of the strengths and weaknesses of the site for the following components: a. For-sale single-family and multifamily housing b. Rental housing c. Senior housing (varying service levels) 2. Evaluate adjacent and surrounding land uses. 3. Analyze the proximity of the Site to other uses including major employment concentra- tions, cultural and recreational opportunities, entertainment and shopping, etc. 4. Discuss the appropriateness of the Site for the proposed residential uses. Cost: $845.00 B. Demographic Analysis I. Define the draw areas ("Market Area") for the residential components of the proposed development. 2. Compile and analyze information on population and household growth trends (1990 to 2020) in the draw area, counties and the Twin Cities Metro Area. 3. Compile demographic information for the residential draw areas on: a. age distribution (1990 to 2012) b. household incomes by age of householder (2007 & 2012) c. household tenure (1990, 2000 & 2005) d. household type (1990, 2000 & 2005) 4. Summarize links between demographic profile and housing demand. 5. Discuss the implications of the findings on housing demand for the subject property. Cost: $2,000.00 C. Employment Trends 1. Examine data on projected employment growth trends in the draw area; incorporate addi- tional data as necessary from T AZ information compiled by the Metropolitan Council. 2. Evaluate T AZ information in light of the proposed development scenario for the TCAAP site. 3. Examine county data on covered employment (based on location of jobs). 4. Interview local economic development specialists regarding business growth trends, po- tential new businesses, and economic conditions. 5. Discuss the implications of the findings on housing demand for the subject property. Cost: $2,300.00 MAXFIELD RESEARCH INe. Ms. Michelle Wolfe City of Arden Hills August 20, 2007 Page 7 D. For-Sale Market Analysis 1. Collect data on single-family housing resale values from the Twin Cities MLS; examine price distribution and median sale price of home resales in the draw area. 2. Inventory actively marketing single-family subdivisions in the draw area; collect data on available lots, lot sizes, sale prices, absorption period, and residentlbuyer profile. 3. Inventory for-sale multifamily developments in the draw area, collect data on the number of units, unit mix, unit sizes, sale prices, sell-out period, in-unit features and common area amenities, and residentlbuyer profile. 4. IdentifY pending for-sale developments in the draw area. 5. Interview real estate agents, builders, developers, and others regarding overall trends in the single-family and townhome markets and the ability of the site to capture a portion of overall demand; identifY the potential synergies associated with the creation of a master- planned development and the ability of the subject property to capture a higher propor- tion of demand due to the synergies associated with a master planned community. 6. Discuss the implications of the findings on the potential to develop additional for-sale housing on the subject property. Cost: $4,100.00 E. Rental Market Analysis 1. Inventory larger, newer (post 1990) rental buildings in the draw area; collect data on the number of units, unit mix, monthly rents, subsidy type if applicable, vacancies, in-unit features and common area amenities, and resident/renter profile. 2. IdentifY pending rental developments in the draw area. 3. Interview real estate agents, rental property owners and managers, and others regarding overall trends in the rental market. 4. Discuss the implications ofthe findings on the potential to develop additional rental housing on the subject property. Cost: $2,500.00 F. Senior Housing Market Analysis 1. Define the four types of senior housing (adult/few services, congregate/optional services, congregate/service-intensive, and assisted living). 2. Inventory senior housing developments in the draw area; include data on the number of units, unit mix, sale prices or monthly rents, subsidy type if applicable, vacancies, in-unit features and common area amenities, and resident profile. 3. IdentifY pending senior housing developments in the draw area. 4. Interview support service providers regarding the housing and service needs of seniors in the draw area. 5. Discuss the implications of the findings on the potential to develop additional senior housing on the subject property. Cost: $2,500.00 MAXFIELD RESEARCH INC. Ms. Michelle Wolfe City of Arden Hills August 20, 2007 Page 8 G. Conclusions and Recommendations 1. Calculate demand for owned and rented housing in the draw area through 2020, based on projected employment and household growth trends and pent- up demand. 2. Calculate demand for senior housing by service level through 2012. 3. IdentifY potential target markets for different types of housing developments including for-sale single-family and multifamily, rental, and senior housing. 4. Suggest appropriate development concepts in the short-term (the level of development that can be supported over the next five years) including number of units, unit mix, unit sizes, sale prices or monthly rents, and in-unit features and common area amenities. 5. Provide a range of potential demand that can be supported in the long-term (within the next ten years, fifteen years); identifY the potential demographic trends and residential product types that may be appropriate for development in the long-term timeframe. Cost: $2,700.00 H. Meetings and Report Preparation 1. Two internal research review meetings. 2. In person, discuss the draft version of the report with the Client. 3. In person, one presentation of the final report to the Client. 4. Final preparation of report document. Cost: $1,000.00 Total Cost for Staff Time-Residential Component: $17.945.00 SCOPE OF SERVICES-Commercial Component Retail Market Analysis A. Retail Demographic Analysis and Market Conditions I. Define the trade area for retail at the subject property based on community orienta- tion, travel patterns, and proximity to competitive developments. Cost: $500.00 2. Analyze Retail Market Trends in the Trade Area a. Examine demographic growth trends and characteristics of the Trade Area. b. Examine retail expenditure data for households in the Trade Area. c. Examine data on overall retail sales trends in the Trade Area. d. Examine secondary data on retail space construction and absorption since 2000. Cost: $800.00 3. Existing Retail Market Conditions MAXFIELD RESEARCH INC. Ms. Michelle Wolfe City of Arden Hills August 20, 2007 Page 9 a. Inventory competitive retail centers in the Trade Area; include information on amount of space, vacancies, year built/renovated, lease rates, and tenant mix. b. Inventory any planned retail development, including renovations and expan- sions planned in the Trade Area. Assess their impact on the potential for retail development on the TCAAP property. c. Interview retail brokers in the area regarding retail market trends, positioning of retail space on the TCAAP property, the potential for new retail at the proposed location including amount and types, and identifY areas that would compete with the site for customers. Cost: $3,000.00 4. Demand Estimates and Recommendations I. Calculate demand for new retail space in the Trade Area through 2020, includ- ing the proportion that can be captured at the Site over the proposed timeframes. 2. IdentifY a mix of uses and umnet market niches that would be appropriate the property. Provide a mix of both potential local and national user types that would be appropriate. 4. Analyze the conditions necessary to attract certain types of users to the Site. 5. IdentifY a potential timeframe for attracting these users. 6. Examine the potential synergies between retail, housing, and office developed in a master-planned community on the subject property. Cost $3,000.00 Office Market Analysis B. Office Market Analysis and Market Conditions I. Define the Trade Area for office in a mixed-use master-planned, examine demographic growth trends in the Trade Area. Cost: $400.00 2. Examine Employment Trends and Business Growth in the Trade Area. a. Examine overall employment growth trends for the Trade Area. b. Examine business growth trends in the Trade Area (types of business establish- ments) focusing on growth among businesses that traditionally utilize office space. Cost: $800.00 3. Office Market Conditions a. Examine secondary data on office space construction and absorption since 2000 and recent occupancy rate trends. MAXFIELD RESEARCH INC. Ms. Michelle Wolfe City of Arden Hills August 20, 2007 Page 10 b. Inventory competitive multi-tenant office buildings in the Trade Area, including information on size of building, lease rates/sales price, tenant profile, and build- ing style. c. Interview office leasing brokers regarding demand for space on the subject property; provide information on types of tenants, overall market trends, and the potential for additional office space on the subject property. Cost: $2,500.00 4. Conclusions and Recommendations a. Calculate demand for office space in the Trade Area through 2020, including the proportion of demand that can be captured by the subject project. b. Suggest appropriate development concepts for the office component, such as multi-tenant leased space, executive suites, office condominiums. c. Project absorption. d. Identify existing or needed amenities to reach absorption targets. e. Examine the potential synergies between office and retail and housing in a mas- ter-planned community on the subject property. Cost: $3,000.00 5. Meetings and Client Contact a. One initial orientation meeting in person with Client to review study objectives. b. One meeting in person to review market information and draft findings of the report. c. One formal presentation meeting to key stakeholders. d. Final preparation of report document. Cost: $1,000.00 Total Cost of Commercial Component: $15.000.00 COST OF SERVICES The work outlined under Scope of Services-Residential Component will be performed for Seven- teen Thousand Nine Hundred Forty-Five Dollars ($17,945.00) and under the Scope of Services Commercial Component will be performed for Fifteen Thousand Dollars ($15,000.00), including out-of-pocket expenses for printing, postage, long-distance telephone, data purchases, mileage and 5 copies of the final report and payable as follows: a) the balance of the contract amount due in monthly installments based on Maxfield Research Inc.' s completion of work. If the two components are completed simultaneously, there would be a cost savings of$3,000.00 to complete the two together. MAXFIELD RESEARCH INC. Ms. Michelle Wolfe City of Arden Hills August 20, 2007 Page 11 Any additional research, meeting time, or presentations requested by the Client beyond that set forth in the accompanying Scope of Services will be billed at our normal hourly rates for staff time. Any additional copies of the report beyond the 5 included in the contract amount will be billed to the Client at our direct cost. WORK PRODUCT Findings will be presented in a bound report format. The Market Feasibility analysis is accepted by many lenders, limited partners, investors or governmental bodies who require such documen- tation to satisfY their financing criteria. COMPLETION TIME The work outlined under Scope of Services will be completed in draft form within Sixty (60) days of the execution of this agreement unless delayed by unexpected emergencies, forces beyond the control of the parties, or by written agreement of the parties. PAYMENT All costs including staff time and out-of-pocket expenses billed on a monthly basis shall be pay- able to Maxfield Research Inc. within fifteen (15) days of receipt of an invoice showing the work completed and the cost of the work. A finance charge of one and one-half percent (1.5%) per month will be added to the unpaid balance of each invoice not paid within thirty (30) days. DISCLAIMER The objective of this research assigmnent is to gather and analyze as many market components as is reasonable within the time limits and projected staff hours set forth in this agreement. We assume no responsibility for matters legal in character. The property/land is assumed to be free and clear of any indebtedness, liens or encumbrances; and good and marketable title and competent management are assumed, unless otherwise stated. If building plans or site plans are included in the report, they are to be considered only approxi- mate and are submitted to assist the reader in visualizing the property. We assume no respon- sibility for the accuracy of any building or site plans. Certain information and statistics contained in the report, which are the basis for conclusions contained in the report, will be furnished by other independent sources. While we believe this information is reliable, it has not been independently verified by us and we assume no respon- sibility for its accuracy. MAXFIELD RESEARCH INC. Ms. Michelle Wolfe City of Arden Hills August 20, 2007 Page 12 The conclusions in the report are based on our best judgments as market research consultants. Maxfield Research Inc. disclaims any express or implied warranty of assurance or representation that the projections or conclusions will be realized as stated. The result of the proposed project may be achieved, but also may vary due to changing market conditions characteristic of the real estate industry, changes in facts that were the basis of conclusions in this report, or other unfore- seen circumstances. In the event payment is not received on a timely basis, Maxfield Research Inc. shall be entitled to a lien against the subject property. This agreement will be construed according to the laws of the State of Minnesota. TERMINATION This agreement may be terminated upon written notification of either party to the other. In the event of termination, the Client will pay Maxfield Research Inc. for staff hours performed at the firm's normal hourly rates, plus all expenses incurred through the date of termination. If this proposal meets with your approval, please sign and return one copy to the offices of Max- field Research Inc. The price terms of this agreement shall remain in effect for a period of 90 days from the date shown at the top of this document. Agreed to this day of 2007. MAXFIELD RESEARCH INe. CITY OF ARDEN HILLS V1f~ t0ffl Mary C. Bujold By: President Its: I authorize: (please initial selections) Residential Component ($17,945) Commercial Component ($15,000) Note: Ifboth are completed simultaneously, a cost savings of $3,000.00 would result to the total. MAXFIELD RESEARCH INC. r-..M 0_ ~ <l) . " ~~ ,.., en ;::l bO ~ <.E en oS ;::::r1 ..2 E ~~ ~'O en ::EO -;; " f-< " {j '" ~ '" N '" ... - o ... N N N 00 ... ... 00 '" .~ ~ >. " = ..: ~ = .$1 - ;;; = Q U - .!.l ~ 00 s:i s:i = .$1 - " ~ " '" " ~ 0. - ~ Q ~ ." = " ~ OJ) .S - " " ~ III - = " = Q '" e Q U " .~ ~ " e e Q U N N r-- r-- r-- M o 0 M 00 ... ... '" - ... ... '" .~ ~ >. " = ..: ~ = Q '" ;;; = Q U - .!.l ~ " ~ 'il - " ~ ..: 00 ... ... '" - ~ .~ " = ..: ~ = .$1 - ;;; = Q U - ~ " ~ " .~ ~ " e e Q U III '" r-- M "''''0 ......0 '" '" 0 N'r-:'lfi' "'-,.., "".., "" r-- '" '" ...- "" M "" NOO '" '" 0 ""'" '" "" '" N - "'00 ",r--OO -"" '" ,.; - "" o - 00 '" 0 O\Sj:q "" N" - "" 00 0 0 N '" 0 _ N """; "" = .$1 - " ~ " '" " ~ 0. t: Q '" " ~ ." = " ~ OJ) = '" " " ~ U " - e - = ~ 5 ~ := 1:: a Q ~ ~ s ~ .,. ~ uQ U ~ :; ~ - = = "t -; .::: = == = 4:: ~ = U = " -;~:3~i ~ .~ = ~ = f-<-f-<~U u z - = ~ ..: '" en ~ ::l '" - ~ ~ ~ Ms. Michelle Wolfe City of Arden Hills August 20, 2007 Page 14 Mary C. Bujold, CRE President/Director of Research Mary joined the firm in 1984 shortly after Maxfield Research was established. Working initially with multifamily residential developments, Mary rapidly expanded her expertise to include financial insti- tution studies and retail analyses. She is consi- dered a market expert in the field of residential real estate and in market analysis for financial in- stitutions. As Director of Research, she is responsible for overseeing and directing all research projects for the firm. In addition, she also heads project as- signments for large-scale land use and downtown redevelopment studies for private developers and municipalities in the Twin Cities and in the Upper Midwest. Mary has worked with a wide array of public and private sector clients including institutional clients. She has worked directly with private developers and colleges and universities on their short-term and long-term student housing needs. A graduate of Marquette University in Business Administration, Mary also holds an M.B.A. Degree from the University of Minnesota. She is a licensed real estate broker in the State of Minnesota, and holds the Counselors of Real Estate (CRE) designation. MAXFIELD RESEARCH INC. Ms. Michelle Wolfe City of Arden Hills applications for Maxfield. August 20, 2007 Page 15 Jay Thompson Vice President Mr. Thompson joined Maxfield Research in 1996. He has broad experience in conducting market studies for a wide variety of residential and com- mercial developments across the Upper Midwest. Mr. Thompson is well-versed in market and eco- nomic issues that affect urban and rural areas in public and private markets. Much of his work has focused on determining comprehensive housing needs in regional rural centers. In addition, Mr. Thompson has specialized in conducting market feasibility studies for mixed-use development projects and downtown redevelopments. Mr. Thompson is also the resident expert in mapping Prior to joining Maxfield, Jay served as a planner for the City of Lakewood, Colo- rado where his responsibilities included co-managing the Community Develop- ment Block Grant Program and conducting demographic and land use research for various planning projects. MAXFIELD RESEARCH INC, Jay holds a Bachelor of Science degree in Geography from Mankato State Uni- versity, where his course work emphasized urban and regional planning. He is also a licensed real estate agent in the State of Minnesota. Ms. Michelle Wolfe City of _Arden Hills August 20, 2007 Page 16 Ryan Bergman Research Analyst Mr. Bergman joined Maxfield Research in Octo- ber of 2005. Ryan's expertise includes the anal- ysis and interpretation of financial, statistical and demographic data. His focus at Maxfield is col- lecting data and analyzing the findings. Ryan has completed and assisted in several projects including analysis for a wide variety of for-sale and rental housing in the Twin Cities Me- tro Area and greater Minnesota, senior housing and commercial/industrial analysis for Scott County and artist housing in Northeast Minneap- olis. Prior to joining Maxfield, Ryan worked as an in- tern at Opus Northwest Management. While there he worked closely with property managers gaining an understanding of the real estate industry from the management side. MAXFIELD RESEARCH INC. In 2005 Ryan received a Bachelor of Arts degree in International Studies with a fo- cus in World Politics and Economics from Taylor University in Indiana. Ryan also studied at Hong Kong Baptist University during the fall of 2003. Ms. Michelle Wolfe City of Arden Hills August 20, 2007 Page 17 Maxtield Research Inc. is a full service real estate research company that provides comprehensive real estate market in- formation. We have more than 20 years of experience in real estate market feasibility and consult on a variety of real estate related market issues. Our expertise enables us to offer solu- tions to the many challenges that developers and communities face. The relationship we develop with our clients is a critical component to the success of our research approach and serves as a source of direction and information during the development and planning stages. Our thorough knowledge of market trends in the real estate industry allows us to support our clients with valuable information that affects planning and development. We are able to deter- mine viable solutions to the issues inherent in planning for growth. We provide research for "smart" development and support the real estate research needs of a wide range of clients includ- ing: ~ Real Estate Developers ~ Marketing and Management Companies ~ City and County Government Agencies ~ Local and Regional Housing Authorities ~ Financial Institutions ~ Health Care Organizations ~ Investors and Lenders ~ Architects and Law Firms ~ Rental ~ Student Housing ~ Condominium ~ Financial Services Market .FeasibiIity Studies for all types of development, with particular expertise in multifami- ly rentals, for-sale, multifamily, and senior housing. Market feasibility studies provide our clients with the information they need to determine the likelihood of successful implementation of the project they are evaluating. Market Assessments provide clients with relevant information to make site selection decisions, gain additional knowledge about current and evolving markets, or reposition existing properties to take advantage of changing markets or competitive conditions. Comprehensive Housing Studies help cities and/or counties anticipate housing needs, direct housing policies, and understand key issues/conditions in the housing market. MAXFIELD RESEARCH INC. Ms. Michelle Wolfe City of Arden Hills August 20, 2007 Page 18 Senior Honsing Studies provide developers with an analysis of the factors involved in senior housing feasibility. We maintain a proprietary database tracking all of the determinants of senior housing's success. Affordable Housing Studies determine need that cities and counties can evaluate to determine development issues and allocation of funds. Commercial Analyses determine the market potential for the development of office and retail space, banks, recreational facilities, hospitality projects, and industrial space. Land Use Planning enables clients to redefine and reposition downtown areas, redevelop older neighborhoods, explore the highest and best uses of land and evaluate the capabilities of diverse land uses. Consulting Services are customized to meet individual client needs, and may include a variety of services tailored to the individual project. Financial Studies determine need for additional financial institutions in a market area by eva- luating current financiaVdeposit data of a given market. Student Housing Studies identify current market conditions for student rental housing and de- termine the market for reallocating on-campus student housing. Rental Housing Studies determines the need for general occupancy in a multi-family housing concept. Condominium Studies provide developers with an analysis of potential feasibility and marketa- bility of condominium projects in an area. Economic Impact Studies provide developers with an analysis of the local economy and the impact that local businesses have on the community. MAXFIELD RESEARCH INC.