6 - Financial Consultant Proposal

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Proposal to City of Pequot Lakes,Minnesota,Alternate Route Study Group March 30,2007 Page 3 of 6 or planned for the realigned corridor. The core of the analysis will use parcel-specific data for all property within the two study areas (the boundaries of which can be determined together in the first phase of the work), and work with the Community Growth Institute to categorize property into three general uses: •Enterprises highly sensitive to traffic volumes; •Businesses less sensitive to traffic volumes but more sensitive to ease of access;and •Businesses sensitive both to traffic volumes and ease of access. A body of research exists on which types of uses generally fit each of these profiles, and our work will include analysis (as applicable) using the same methods for the existing corridor and the realigned corridor east of downtown. Using varying levels of changes in traffic volumes,I will prepare a range of potential impact on estimated market values for parcels in the study area. 1 will also examine the impact of land takings envisioned in the draft EIS or as otherwise envisioned by the City, and factor in these financial effects into the analysis. The use of geographic information systems (GIS) will be used both to aid the analytics as well as convey results. I have spoken with Mr.Marohn from Community Growth Institute,who has indicated that the Institute is able and willing to provide GIS support for this purpose. The analysis described here will yield feedback regarding: •Projected impact on estimated market values associated with changes in traffic volumes for the existing corridor and the realignment corridor; •Projected impact on estimated market values associated with the fact that the realignment corridor will present different levels of access to businesses and developable sites than does the existing corridor; •The impact on the net tax capacity in the City indicated by the above results,using City zoning documents as a guide regarding the land uses planned for areas along the realignment corridor; •A comparison of the change in the City's net tax capacity projected to result from a realignment,to the anticipated City cost of constructing the realignment. We are also prepared to work with the City to structure an approach for a public role in stabilizing existing businesses either during a construction period to expand the existing alignment, or during a shifting of traffic volumes to a realigned highway. Proposed Budget Expectations Based on the summary included above,the budget proposed for this project is $8,580, which is itemized within the project in the table below.