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k®S]•�l Ron. <br />ct,n,ip.,ntps <br />June 19, 2017 <br />Marc Morley <br />Economic Development Specialist <br />City of Santa Ana <br />20 Civic Center Plaza (M-25) <br />Santa Ana, CA 92702 <br />Exhibit -Consultant Agreement <br />Financial Feasibility Analysis <br />Re: Proposal for Financial Feasibility & Net Fiscal Impact and Economic Benefit <br />Analysis <br />Dear Mr. Morley: <br />Kosmont & Associates, Inc. doing business as Kosmont Companies ("Consultant" or <br />"Kosmont") is pleased to present this proposal to the City of Santa Ana ("Client") for the <br />preparation of a Financial Feasibility Analysis ("Analysis") in connection with the proposed <br />redevelopment of the 3rd and Broadway parking structure located in the City's Downtown. <br />This proposal serves as an Agreement when executed and returned by Client to Kosmont. <br />I. BACKGROUND AND OBJECTIVE <br />Client is currently in an exclusive negotiation agreement with Caribou Industries <br />("Developer") for the potential redevelopment of the 3rd and Broadway parking garage in <br />Downtown Santa Ana with a mixed-use project that proposes 10.909 sf of retail, 3,470 sf <br />of office, 106 room hotel, and 123 residential units ("Project"). Client is interested in <br />understanding the financial feasibility should the Project be developed. Client has <br />requested that Consultant prepare the Analysis to evaluate the Developer's project <br />program and pro -forma of the proposed Project. <br />II. SCOPE OF SERVICES <br />Task 1: Define Project Parameters <br />Consultant will meet with Client to review the specific development parameters and <br />preliminary pro forma revenue and cost assumptions of the proposed Project. <br />Task 2: Analysis of Revenues and Costs <br />Based on the development program provided by the Client and/or Developer, Consultant <br />will prepare an independent pro forma cash flow model to illustrate gross revenues, <br />operating expenses, lease rents and financing terms, stabilized value, net cash flow and <br />return on investment. Based on industry standard thresholds for profit, Consultant will <br />estimate the need for any financial assistance. <br />1601 N. Sepulveda Bud. #382, Manhattan Beach, CA 90266 1 ph 424.297.1070 1 www.kosmont.com <br />