BAE URBAN ECONOMICS, INC. (#2026438)

actual operating information from other similar regional sports complexes with which BAE is familiar from prior consulting assignments. • Identify risks, sensitivities, and key variables that could materially impact financial performance. o Utilizing the developer’s pro-forma for the proposed project, BAE will “stress test” the developer’s pro-forma in light of the findings from the above sub -tasks and identify alternative financial projections that the City should consider in evaluating the proposal based on altering key assumptions in order to better align pro-forma inputs with the results observed for similar facilities. • Provide a written peer review report summarizing findings, alternative scenario modeling (as appropriate), and recommendations. o This report will help the City to better understand which factors and assumptions in the financial model are critical to the success of the project, and the potential upside and downside risks to the City if pro-forma variables fall within reasonably anticipatable ranges. o BAE will prepare a draft memo to summarize the Task 1 analysis for review and comment by City staff. Upon receipt of a single, consolidated set of written comments from City staff on the draft memo, BAE will revise the memo and submit a final memo for the City’s use. Task 2 – Assessment of City Public Financing Options The consultant understands that the developer is interested in a partnership arrangement in which the City would finance and own the facility and the developer would operate the facility on the City’s behalf. This places significant risk on the City and also requires the City to dedicate debt capacity to the project that might otherwise be utilized for other important public purposes. NHA will take the lead in evaluating the public financing options available to the City for a project of this type, from t he standpoint of statutory authority as well as the particular project characteristics and local circumstances. This will include the following elements, as requested in the City’s RFP: • Review the proposed development structure and identify feasible financing mechanisms available to the City. • Provide background information that explains each financing option, including statutory requirements, risk exposure, repayment feasibility, administrative considerations, and comparative advantages/disadvantages. • Recommend financing approaches aligned with the City’s fiscal policies and budget status and long-term financial sustainability. Jones Hall will support NHA in this task by providing input to, and legal review of NHA’s assessment, applying expertise in a variety of financing structures that may be useful for this project. NHA, in collaboration with Jones Hall will summarize applicable financing options, key legal issues, and comparative advantages/disadvantages, in the form of a technical memo that will be included as an attachment to Task 1 memo that BAE will prepare (see above). BAE will include a summary of the Docusign Envelope ID: 28AAFB7A-F31B-469C-B172-17ACC0A628F6Docusign Envelope ID: 6F743673-03C8-43C0-95A5-67A331894F1D