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HomeMy WebLinkAboutRFP - 10149 Urban Renewal Authority Underwriter for the Upcoming Issuance of Tax Increment Revenue Bonds Series 2025RFP 10149 Urban Renewal Authority Underwriter for Issuance of Tax Increment Revenue Bonds Series 2025 Page 1 of 10 REQUEST FOR PROPOSAL 10149 CITY OF FORT COLLINS URBAN RENEWAL AUTHORITY UNDERWRITER FOR THE UPCOMING ISSUANCE OF TAX INCREMENT REVENUE BONDS SERIES 2025 RFP DUE: 5:00 PM MT (Mountain Time), APRIL 2, 2025 The City of Fort Collins on behalf of the Fort Collins Urban Renewal Authority (“FCURA” or the “Authority”) is seeking proposals from qualified underwriters for an estimated thirteen million dollars ($13,000,000) of its Series 2025 Tax Increment Revenue Bonds (“2025 Bonds”). The proceeds of the 2025 Bonds will be used to acquire certain real estate parcels located within the North College Tax Increment Urban Renewal Area (the “Plan Area”). As part of the FCURA’s commitment to sustainability, proposals must be submitted online through the Rocky Mountain E-Purchasing System (RMEPS) at http://www.bidnetdirect.com/colorado/city- of-fort-collins. Note: please ensure adequate time to submit proposals through RMEPS. Proposals not submitted by the designated Opening Date and Time will not be accepted by RMEPS. All questions should be submitted, in writing via email, to Gerry Paul, Purchasing Director at gspaul@fcgov.com with a copy to Josh Birks, Acting Executive Director, at jburks@fcgov.com, no later than 5:00 PM MT on March 18, 2025. Please format your e-mail to include: RFP 10149 City of Fort Collins Urban Renewal Authority Underwriter for Issuance of Tax Increment Revenue Bonds Series 2025 in the subject line. Questions received after this deadline may not be answered. Responses to all questions submitted before the deadline will be addressed in an addendum and posted on the Rocky Mountain E-Purchasing System webpage. Rocky Mountain E-Purchasing System hosted by BidNet A copy of the RFP may be obtained at http://www.bidnetdirect.com/colorado/city-of-fort-collins. This RFP has been posted utilizing the following Commodity Code(s): 94630 Cash/Securities and Bonding Services 94925 Financial and Accounting Services, Bonds Prohibition of Unlawful Discrimination: The City of Fort Collins, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 US.C. §§ 2000d to 2000d- 4) and the Regulations, hereby notifies all bidders that it will affirmatively ensure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award. The City strictly prohibits unlawful discrimination based on an individual’s gender (regardless of gender identity or gender expression), race, color, religion, creed, national origin, ancestry, age 40 years or older, marital status, disability, sexual orientation, genetic information, or other characteristics protected by law. For the purpose of this policy “sexual orientation” means a person’s actual or perceived orientation toward heterosexuality, homosexuality, and bisexuality. The City also strictly prohibits unlawful harassment in the workplace, including sexual Financial Services Purchasing Division 215 N. Mason St. 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6775 970.221.6707 fcgov.com/purchasing RFP 10149 Urban Renewal Authority Underwriter for Issuance of Tax Increment Revenue Bonds Series 2025 Page 2 of 10 harassment. Further, the City strictly prohibits unlawful retaliation against a person who engages in protected activity. Protected activity includes an employee complaining that he or she has been discriminated against in violation of the above policy or participating in an employment discrimination proceeding. The City requires its Service Providers to comply with the City’s policy for equal employment opportunity and to prohibit unlawful discrimination, harassment and retaliation. This requirement applies to all third-party Service Providers and their subcontractors/subconsultants at every tier. Public Viewing Copy: The City is a governmental entity subject to the Colorado Open Records Act, C.R.S. §§ 24-72-200.1 et seq. (“CORA”). Any proposals submitted hereunder are subject to public disclosure by the City pursuant to CORA and City ordinances. Professionals may submit one (1) additional complete proposal clearly marked “FOR PUBLIC VIEWING.” In this version of the proposal, Professionals may redact text and/or data that it deems confidential or proprietary pursuant to CORA. All pricing will be considered public records subject to disclosure under CORA and as such pricing cannot be redacted from the “FOR PUBLIC VIEWING” version of the proposal. Failure to provide a public viewing copy will be considered a waiver of any claim of confidentiality under CORA without regard to how the applicant’s proposal or certain pages of the proposal are marked confidential, proprietary, or similar. Such statement does not necessarily exempt such documentation from public disclosure if required by CORA, by order of a court of appropriate jurisdiction, or other applicable law. Generally, under CORA, trade secrets, confidential commercial information and financial data information may not be disclosed by the City. Proposals may not be marked “Confidential” or ‘Proprietary’ in their entirety. By responding to this RFP, Professionals hereby waives any and all claims for damages against the City for the City’s good faith compliance with CORA. All provisions and pricing of any contract resulting from this request for proposal will be public information. Service Providers Registration: The City requires new Service Providers/ Professionals receiving awards from the City to submit IRS form W-9 and requires all Service Providers/ Professionals to accept Direct Deposit (Electronic) payment. If needed, the W-9 form and the Vendor Direct Deposit Authorization Form can be found on the City’s Purchasing website at www.fcgov.com/purchasing under Vendor Reference Documents. Please do not submit these documents with your proposal, however, if you take exception to participating in Direct Deposit (Electronic) payments please clearly note such in your proposal as an exception. The City may waive the requirement to participate in Direct Deposit (Electronic) payments at its sole discretion. Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall have a financial interest in the sale to the City of any real or personal property, equipment, material, supplies or services where such officer or employee exercises directly or indirectly any decision-making authority concerning such sale or any supervisory authority over the services to be rendered. This rule also applies to subcontracts with the City. Soliciting or accepting any gift, gratuity favor, entertainment, kickback or any items of monetary value from any person who has or is seeking to do business with the City of Fort Collins is prohibited. Collusive or Sham Proposals: Any proposal deemed to be collusive or a sham proposal will be rejected and reported to authorities as such. Your authorized signature of this proposal assures that such proposal is genuine and is not a collusive or sham proposal. The City of Fort Collins reserves the right to reject any and all proposals and to waive any irregularities or informalities. RFP 10149 Urban Renewal Authority Underwriter for Issuance of Tax Increment Revenue Bonds Series 2025 Page 3 of 10 Utilization of Award by Other Agencies: The City of Fort Collins reserves the right to allow other state and local governmental agencies, political subdivisions, and/or school districts to utilize the resulting award under all terms and conditions specified and upon agreement by all parties. Usage by any other entity shall not have a negative impact on the City of Fort Collins in the current term or in any future terms. Sincerely, Gerry Paul Purchasing Director RFP 10149 Urban Renewal Authority Underwriter for Issuance of Tax Increment Revenue Bonds Series 2025 Page 4 of 10 A. INTRODUCTION The Fort Collins Urban Renewal Authority (“FCURA” or the “Authority”) is an urban renewal authority created pursuant to the Urban Renewal Law of the State of Colorado. The resolution establishing the Authority was adopted by the Fort Collins City Council in 1982. B. PROJECT DESCRIPTION FCURA is seeking proposals from qualified underwriters for an estimated thirteen million dollars ($13,000,000) of its Series 2025 Tax Increment Revenue Bonds (“2025 Bonds”). The proceeds of the 2025 Bonds will be used to acquire certain real estate parcels located within the North College Tax Increment Urban Renewal Area (the “Plan Area”). The Plan Area is located in the northern portion of the City. In 2004 the Fort Collins City Council determined that the area comprising the Plan Area was a blighted area in accordance with statutory criteria. As such, the Plan Area was designated and approved pursuant to an urban renewal plan entitled the “North College Urban Renewal Plan,” originally adopted by the City Council on December 21, 2004 (as amended, the “Plan” or the “Urban Renewal Plan”). The Plan Area encompasses approximately 407 acres. It includes approximately 261 acres of commercial property, 48 acres of residential property; 56 acres of exempt property, 19 acres of agricultural property, 15 acres of mobile home parks, 7 acres of non-taxable property and 1 acre of industrial property. The commercial property includes a retail center anchored by a 123,000- square-foot Albertson’s grocery store located at 1636 N. College Ave. In 2024, the FCURA board approved a contract authorizing the Authority to buy the Albertson’s grocery store as the property had been vacant since 2014. The Authority plans to redevelop it, or partner with one or more other entities to redevelop it. As such, Bond Counsel is presently determining if the proposed 2025 Bonds will be 100% tax-exempt or if a portion will be taxable. Currently, FCURA anticipates using a portion of bond proceeds to purchase the above property as well as certain other properties (TBD) within the Plan Area. The total estimated cost of these real estate acquisitions funded through bond proceeds is expected to be $12,400,000. The Plan authorizes the use of property tax increment financing for a period of 25 years following the adoption of the Plan (i.e. through December 2029). C. PROPOSAL PROCEDURES 1. Anticipated Schedule of Proposal: Issue RFP: March 12, 2025 Question Deadline: March 18, 2025 at 5:00 pm (Mountain) Proposals Due: April 2, 2025 at 5:00 pm (Mountain) Underwriter Award: April 2025 (Anticipated) Preliminary POS: April 2025 (Anticipated) Sale Date: May 2025 (Anticipated) Close Date: May 2025 (Anticipated) RFP 10149 Urban Renewal Authority Underwriter for Issuance of Tax Increment Revenue Bonds Series 2025 Page 5 of 10 2. Financing Team: Firm Role Persons Fort Collins Urban Renewal Authority Issuer Joshua Birks & Andy Smith UMB Financial Services, Inc. Municipal Advisor Melissa Buck & Kathryn Pong URA General Counsel Brownstein Hyatt Caitlin Quander Bond Counsel Nixon Peabody Andrew Rubin Trustee U.S. Bank 3. Preparation of Proposals Each proposal shall be prepared simply and economically avoiding the use of elaborate promotional materials beyond what is sufficient to provide a complete, accurate, and reliable presentation. 4. Inquiries and Submission of Proposals: Proposals must be dated and signed (electronic signature acceptable) by a duly authorized partner or corporate officer, with that person’s name and title clearly identified. All the proposal terms, conditions, contents, fees and charges shall be guaranteed by the proposer for a minimum of ninety (90) days from the date of submission of the proposal to the Authority. All proposals must be submitted online through the Rocky Mountain E- Purchasing System (RMEPS) at http://www.bidnetdirect.com/colorado/city-of-fort- collins not later than April 2, 2025 at 5:00 pm (Mountain). Proposals received after the aforementioned date and time may not be considered. 5. Right to Reject FCURA reserves the right to reject all proposals and to negotiate with any prospective underwriter or to seek financing through other means. If the 2025 Bonds are not delivered for any reason, proposing firms will have no recourse against the Authority or the City of Fort Collins, and, as to each of FCURA or Fort Collins, its elected or appointed officials, employees, agents, attorneys, financial advisors, or any of its affiliates or representatives for any expenses, losses, damages, or liability incurred. FCURA also reserve the rights, at their sole discretion, to utilize the services of the selected underwriter for similar transactions for up to five (5) years. FCURA will also not be obligated to sell the Bonds to the selected underwriter until an acceptable Bond Purchase Agreement has been executed. While the employees of the selected underwriter may be acting in anticipation of completing the transaction, the selected underwriter will not be entitled to any compensation which is not derived from the resale of the Bonds to the public. 6. Award of Contract All proposals submitted in response to this RFP will be evaluated by the Authority and the Authority’s municipal advisor, UMB Financial Services Inc. (“UMB”). The Authority anticipates finalizing the underwriter selection no later than April 7, 2025. RFP 10149 Urban Renewal Authority Underwriter for Issuance of Tax Increment Revenue Bonds Series 2025 Page 6 of 10 7. Notification to Firms • All written and electronic correspondence, exhibits, photographs, reports, printed material, designs, and other graphic and visual aids submitted to the Authority, whether including the response or otherwise submitted, will become property of the Authority upon delivery to Authority and the municipal advisor. • Evaluation of the qualifications of submitting firms and, if the Authority so chooses, selection of the underwriter, shall be performed in a manner which the Authority determines, in its sole discretion, to be in the Authority’s or public interest. • Submitting firms shall have no right to any administrative, legal, or other protest, appeal, or challenge of any matter or grievance in connection with the solicitation or award of any contracts, including the evaluation of firm qualifications and selection of the underwriter. In submitting qualifications in response to this RFP, each firm acknowledges that it shall bear all costs associated with the preparation and submission of qualifications, and that it shall under no circumstances have any right to recover the costs of such qualifications preparation from the Authority or any other costs, expenses, or damages in the event the firm is not selected by the Authority as the underwriter. • The Authority reserves the right to reject any or all firms as unqualified, to waive any and all informalities or technicalities in submittals, or to advertise for new qualifications if the Authority determines, in its sole discretion, that such actions are desired. 8. Trade Secrets and Open Records Act • Application of the Act. Submitting firms acknowledge and agree that all documents submitted to the Authority are subject to the provisions of the Colorado Open Records Act, Sections 24-72-200.1, et seq., Colorado Revised Statutes (the “Open Records Act”), and the submitting firms acknowledge that the Authority shall abide by the Open Records Act, including honoring all proper public records requests made thereunder. Submitting firms shall be responsible for all costs incurred in connection with any determinations required to be made by a court, pursuant to the Open Records Act. Submitting firms are advised to contact legal counsel concerning such acts in application of the Open Records Act to the qualifications submitted. • Confidential or Proprietary Materials. If a submitting firm deems any document(s) which it submits to the Authority to be confidential, proprietary, or otherwise protected from disclosure under the Open Records Act, then it shall provide a “FOR PUBLIC VIEWING” version appropriately labeled and submit such document to the Authority together with a written statement describing the material which is requested to remain protected from disclosure and the justification for such request. This request will either be approved or denied by the Authority; however, the Authority will make a good-faith effort to accommodate all reasonable requests. All submitting firms understand and agree that, regardless of any position taken by the Authority or a submitting firm, a court may order production of material deemed confidential, proprietary, or exempt from disclosure, and such a decision would be beyond the control of the Authority. • Redaction. In the event the Authority receives a records request for the submitted qualifications or any documents which a submitting firm deems confidential, proprietary, or otherwise protected from disclosure under the Open Records Act and the submitting firm desires to redact any portion thereof prior to the release of such documents, the submitting firm must immediately submit an affidavit, along with such RFP 10149 Urban Renewal Authority Underwriter for Issuance of Tax Increment Revenue Bonds Series 2025 Page 7 of 10 redacted documents, indicating that the redacted material is confidential financial information likely to cause substantial harm to the firm’s competitive position or such other justification as the firm has for withholding that information. • Stakeholder. In the event of litigation concerning the disclosure of any document(s) submitted by the submitting firm to the Authority, the Authority’s sole involvement will be as stakeholder retaining the document(s) until otherwise ordered by the court, and the submitting firm shall be fully responsible for otherwise prosecuting or defending any actions concerning the document(s) at its sole expense and risk. The submitting firm shall be responsible for reimbursing the Authority for all costs, legal fees, and other expenses incurred by the Authority as the result of a request or decision by the submitting firm that any materials submitted to the Authority be withheld from any request under the Open Records Act or similar law. D. OUTSTANDING DEBT As of January 31, 2025, the Authority had one series of outstanding debt obligations: Issuance Amount Outstanding Series 2013 Tax Increment Revenue Refunding Bonds (North College Avenue Project) $4,200,000 Total $4,200,000 It is anticipated that these proposed Series 2025 Bonds will be issued on parity with the outstanding Series 2013 Bonds, as well as with a moral obligation pledge from the City of Fort Collins. E. SCOPE OF SERVICES The scope of services to be provided by the selected firm(s) will include, but not be limited to, the following: 1. Evaluate and assist in developing the refunding (is applicable) and new money financing plan for the Bonds. Provide regular updates regarding market conditions and anticipated cost of capital and refunding economics. 2. Assist the Authority in the successful structuring, marketing, and sale of the Bonds to achieve the lowest possible borrowing cost consistent with the Authority’s risk profile and financing objectives. 3. Assist in the preparation of the official statement (if applicable) and other legal and disclosure documents used in connection with the sale of the Bonds. 4. Recommend financing structures that most efficiently achieve the Authority’s financing objectives while providing feedback with regards to investor acceptance and preferences. 5. Assist the Authority, along with UMB, to secure a bond rating for the Bonds. 6. Assist the Authority, as economically advantageous, to secure bond insurance for the Bonds (if applicable). RFP 10149 Urban Renewal Authority Underwriter for Issuance of Tax Increment Revenue Bonds Series 2025 Page 8 of 10 7. Assist the Authority to finalize the official statement (post pricing) along with other legal and closing documents and prepare the closing memorandum for settlement. 8. Follow the Authority’s policies, either oral or written, for liability, designation and retention procedures, pricing procedures, allocation procedures, and the process of selling debt obligations. 9. Assist the Authority in the post-financing evaluation process through the timely submittal of all required reports, post-bond sale descriptions, including how the Authority’s bonds were sold, feedback from investors, and sales performance of the underwriting team (as applicable). F. PROPOSAL CONTENTS Proposals must address: 1. Cover Letter a. The cover letter must contain the firm’s name, address, and primary contact (lead banker) for the proposal. Please state the reasons you believe your firm should be selected and describe any unique capabilities distinguishing your firm from others, or which could contribute to the distribution of the Bonds and a successful financing. 2. Addenda Acknowledgements (if any). 3. Financing a. Demonstrate an understanding of the Authority’s outstanding debt, convey the economics of the proposed refunding, and provide insight regarding a new money structure. Identify any considerations that your firm believes should be understood prior to the execution of the financing. b. The Series 2013 Bonds are currently Aa3 by Moody’s (due to the moral obligation pledge from the City of Fort Collins). Please discuss your approach to applying for ratings for the proposed 2025 Bonds, including the services your firm will provide in presenting the issue to the rating agency. Please provide comments regarding the Authority’s interest in reducing the debt service reserve requirement while maintaining the City’s moral obligation pledge. Please include comments regarding the potential use of municipal bond insurance (or standalone surety) for this issue. c. Please present a preliminary structure, including projected interest rates, for the proposed Series 2025 Bonds. Assume costs of issuance of $200,000 other than underwriting discount. Annual debt service from 2025 through 2030 should provide at least 1.25x debt service coverage. Please use a projected interest rate scale which reflects the market as of April 1, 2025, based on the ratings you would expect. Include the expected coupon structure your firm would recommend, and a spread analysis of the projected yields to the April 1, 2025 MMD AAA scale. Alternative coupon structures may be provided. 4. Selling, Distribution, and Marketing Capabilities a. Describe your firm’s municipal distribution capabilities and any distribution advantages your firm possesses. b. Please describe your municipal bond sales force, including the number and location of salespeople. c. Describe your firm’s marketing approach for the Authority’s proposed 2025 Bonds. RFP 10149 Urban Renewal Authority Underwriter for Issuance of Tax Increment Revenue Bonds Series 2025 Page 9 of 10 5. Commitment and Experience a. Identify individual(s) in your firm who will be assigned to this engagement and their respective roles and responsibilities. Describe their relevant professional experience. State the person who will be responsible for the day-to-day management of the team. b. Please provide professional resumes in an appendix for each team member that will be covering the Authority. c. Describe your firm’s experience with similar national and Colorado transactions. A list of relevant transactions should be included for the last three (3) years dating back to 2021 and can be included as an appendix. d. Please also provide case studies of up to three transactions underwritten by your firm which have similar characteristics to the proposed 2025 Bonds. Describe the security in terms of the pledge of property tax increment, sales tax increment, moral obligation pledges, or other features. Transactions in which TIF was pledged by a URA to support the bonds of another issuer may be included in this response. Please provide the bond ratings, if any, and describe any credit enhancement used to support the issue. 6. Financial Strength a. State your firm’s total capital, equity capital, and excess net capital as of your fiscal year end 2024 (or FYE 2023 if FYE 2024 is unavailable). Describe your firm’s willingness and ability to commit capital for the benefit of the Authority. b. Please list your three most recent comparable deals, for which you had the largest participation. Provide your firm’s role in the transaction, the issuer, issue date, par amount of the financing, and your firm’s participation level for each of the three deals. If you served as lead underwriter, please indicate any balances you were responsible for taking down after the initial sale. 7. Sound Regulatory Standing a. Describe any potential conflicts of interest, particularly representation of any the Authority member entity, property owner within the Authority, or adjacent municipalities, authorities, and urban renewal authorities. b. Indicate if your firm is a party to any litigation or investigation or has been notified of an investigation by any federal or state regulatory agency. c. Describe any sanctions or penalties brought against your firm or any of its personnel (including suspension or debarment) by any regulatory or licensing agencies. Include a description of the reasons for the sanction or penalties and whether such sanctions or penalties are subject to appeal. d. Disclose all compensation/fee arrangements (formal or informal) that your firm, its related entities, or any proposed employees assigned to this engagement currently has, or within the past 12 months has had, with FCURA or the City of Fort Collins. 8. Fees a. Please provide your proposed tax-exempt and taxable bond fee structure for the 2025 Bonds, including any reimbursable costs you would submit to the Authority for payment. In addition, please indicate whether you anticipate retaining underwriter’s counsel, and, if so, what related costs the Authority would be expected to absorb. RFP 10149 Urban Renewal Authority Underwriter for Issuance of Tax Increment Revenue Bonds Series 2025 Page 10 of 10 9. References a. Please provide a list of at least three (3) references for which similar services have been provided. Include current contact names, addresses, and telephone numbers. Please note any costs and expenses incurred by respondents in preparing or submitting qualification statements, including travel expenses incurred to attend meetings or interviews are the sole responsibility of the respondent. Submittal of a Proposal shall be taken as prima facie evidence that the proposer has full knowledge of the scope, nature, quality, and quantity of the Work to be performed, and the detailed requirements and conditions under which the Work is to be performed. G. PROPOSAL EVALUATION Proposals will be evaluated consistent with the requirements of this RFP utilizing the following criteria: Criteria Weighting a. Qualification, experience and expertise in municipal bond financing 30% b. Approach to bond ratings and preliminary structure 30% c. Firm’s financial strength and fee structure 20% d. Selling, distribution, and marketing capabilities 10% At the option of the FCURA, the top evaluated firms may be interviewed.