MUNICIPAL DEBT FINANCIAL ADVISORY SERVICES

Request for Proposal MUNICIPAL DEBT FINANCIAL ADVISORY SERVICES Denver Urban Renewal Authority 1555 California Street, Suite 200 Denver, Colorado 80202 Issued: October 5, 2015 Response Date: October 23, 2015

TABLE OF CONTENTS Section I Introduction.....3 Purpose of the Request for Proposal (RFP)........3 Type of Agreement.....3 Rights of the Denver Urban Renewal Authority...3 Background Denver Urban Renewal Authority...4 Section II Scope of Services Financial Advisor.....4 Section III Requested Proposal Information.... 6 Part A Cover Letter....6 Part B General Information... 6 Part C Fee Proposal....7 Part D Legal Matters and Disclosure....7 Section IV Proposal Submission....8 Section V RFP Conditions..8 Section VI Evaluation Process...9 Section VII Selection Process.... 10 Page 2 of 10

SECTION 1 INTRODUCTION PURPOSE OF THE REQUEST FOR PROPOSAL (RFP) The Denver Urban Renewal Authority ( the Authority ) is requesting proposals from qualified firms interested in providing municipal debt financial advisory services to the Authority. The Authority intends to use this RFP process to select a firm to serve as financial advisor to the Authority in connection with its financial obligations. The Authority s financial obligations may include but are not limited to Tax Increment Revenue Bonds, Interest Rate Exchange Agreements and any other debt obligations. Proposals are due on October 23, 2015. The Authority reserves the right to request additional information from firms responding to the RFP and may request that certain firms responding to the RFP attend face-to face interviews. It is expected that any interview would occur during the week of November 2, 2015. Joint proposals will be accepted. The Authority values diversity and encourages responses from qualified SBE firms. It is the policy of the Authority to encourage and support equal opportunity. The Authority shall not be liable for any of the respondent s expenses associated with any portion of the proposal process. The respondent, if selected, shall not include any such expenses as part of its fee for performing the Scope of Services. TYPE OF AGREEMENT It is the intent of the Authority to enter into a Letter of Engagement arrangement with the successful respondent. It is expected that this Engagement will remain in effect for a period of 1 year with opportunity to renew annually. Appropriate clarifications and additions to the Scope of Services may be made during negotiations with the successful respondent. Compensation is subject to negotiation. RIGHTS OF THE DENVER URBAN RENEWAL AUTHORITY The Authority reserves the right to reject any and all proposals, with or without cause. The Authority also reserves the right to waive any informality or irregularity in any proposal it receives and to be the sole judge of the merits of all proposals it receives. All proposals shall be considered by the Authority as an invitation to negotiate an engagement. The Authority reserves the right to negotiate all final terms and conditions of any engagement resulting from this RFP. This RFP and the resulting Letter of Engagement are governed by the laws of the State of Colorado. Venue for any dispute regarding this RFP or the resulting Letter of Engagement shall be in the District Court for the City and County of Denver, Colorado. Page 3 of 10

BACKGROUND DENVER URBAN RENEWAL AUTHORTY The Denver Urban Renewal Authority was created by ordinance of the City and County of Denver in 1958 under Colorado Urban Renewal Law which was enacted by the State Legislature in that same year. The Authority is the redevelopment agency for the City, performing the traditional duties of an urban renewal authority eliminating blight where it currently exists and helping prevent additional blight from developing. The Authority also has responsibility for implementing three City housing rehabilitation programs designed to improve the quality of existing single-family homes owned by low to moderate income residents and, through its component unit Denver Neighborhood Revitalization, Inc. (DNRI), for implementation of the Neighborhood Stabilization Program as contracted with the City. In its redevelopment capacity, the Authority uses an important financing tool called tax increment financing (TIF) to fill the gap between the cost of a redevelopment project and the level of private financing it can support. State law enables urban renewal authorities to use incremental property and sales taxes generated by a redevelopment project to provide financing. Redevelopment activities which benefit from tax increment are either financed through the issuance of tax increment revenue bonds, notes or with developer reimbursement obligations. The Authority is governed by a Board of Commissioners that directs policy. The Executive Director is appointed by the Board and directs the Authority staff and its operations. Currently the Authority s outstanding bond debt is $276,811,930, including $2,215,000 of Highland s Garden Village TIF revenue bonds and $274,596,930 of Stapleton TIF revenue bonds. The Authority anticipates bond issuances within the next three years to include: financings for $55 million and another for $25 -$50 million. The Authority s annual audited financial statements are available at www.renewdenver.org. Information about the Authority s debt, including offering documents can be accessed on the Municipal Securities Rulemaking Board (MSRB) website www.emma.msrb.org. SECTION 1I SCOPE OF SERVICES FINANCIAL ADVISOR The selected firm is precluded from participation in bond underwriting for the Authority as a comanager, syndicated member or selling group member and is ineligible to provide GIC brokering services or perform as a swap counterparty. The Scope of Services to be provided by the financial advisor will include, but are not limited to, the following transaction-specific and ongoing services: Page 4 of 10

Provide on-going independent financial advice serving solely the interest of the Authority and contribute creative and innovative ideas for management of the Authority s current and future outstanding debt. Advise the Authority on its overall approach to the Authority s financings, as directed, with the Authority, bond attorneys, feasibility consultants, underwriters, investment advisors, rating agencies, trustees, the SEC, MSRB and other professionals involved in the Authority s financings. Review legal documents, including but not limited to, bond resolutions and indentures, intergovernmental agreements, reimbursement agreements, revenue sharing agreements, etc. Assist the Authority in negotiated financings and advise on market timing, issue pricing and structure. Assist the Authority in competitive financings, including publication and distribution of the offering documents, communication with syndicates and verification of bids. Assist the Authority in developing and presenting information to the appropriate rating agencies. Assist the Authority in developing and implementing marketing plans and investor relations communication in connection with the Authority s financings. Assist the Authority in the review and analysis of state and federal legislation and regulations pertaining to the Authority s financing program. Evaluate and analyze proposals on new financing tools, refunding opportunities and other financing opportunities. Assist the Authority in special projects relating to debt issuance and debt management, as assigned, including providing financial derivatives related advice as appropriate. Assist the Authority in preparing and evaluating financial analysis including revenue projections, cash flows, capital plans and financing structures and strategies. Provide recommendations on the management of the Authority s debt, including, but not limited to bond fund investments, asset/liability strategies, bond documentation and disclosure. Page 5 of 10

SECTION III REQUESTED PROPOSAL INFORMATION Requested Proposal Information shall consist of four parts: Cover Letter, General Information, Fee Proposal, and Legal Matters and Disclosure. Firms must respond to all four parts of the RFP. Each firm must present a proposal, to include the following requested information. Part A COVER LETTER Submit a cover letter summarizing your proposal. The cover letter should specify that the signatory is legally authorized to commit the firm to all terms and conditions contained in the proposal. Please limit the cover letter to no more than two (2) pages. Part B GENERAL INFORMATION Provide the firm name, address, telephone number, fax number and email address of the person the Authority should contact in connection with your proposal. Where personnel in more than one office are to be involved, please indicate which office will be primary and which will be secondary. Include a brief description of the firm, covering ownership, organizational structure, size and capitalization. Describe any staffing, organizational or ownership changes which the firm has undergone in the past year. Describe any additional changes that are expected to occur within the next six months. Provide a brief summary of the backgrounds and qualifications of the specific individuals in your firm who would be assigned to work with the Authority. Specify the person who will serve as the primary day-to-day contact and discuss the primary roles that other members of your team will fill. Note the geographic location(s) of team members, including those located in the Denver metropolitan area. Please provide information related to your team s experience with TIF financings in Colorado. Indicate how the quality and availability of the staff over the term of the engagement will be assured. (Please include resumes as an appendix to your proposal.) Provide the name, title, address, telephone number and email address of three client references the Authority may contact in connection with your proposal. Briefly summarize your experience with each client reference. Discuss your firm s analytical and quantitative resources including commercially available software programs, internally created programs and staff assigned to this work. Discuss your firm s approach to negotiated financings and access to current market information in pricing of negotiated sales and financial derivatives. Page 6 of 10

Discuss your firm s approach to competitive financings. Describe the overall timing of the transaction and the methodology you used to assure optimal pricing for your clients. Provide a summary of the key strengths and qualifications of your firm to serve as financial advisor to the Authority. Part C FEE PROPOSAL Please provide your proposed fee structure. Given the intermittent nature of financings by the Authority and need for services on such a basis, the Authority would anticipate receiving proposals that include a monthly retainer or hourly rates or a combination of both. The Authority also is receptive to other alternate means of compensation. Describe how the fee will be assessed and calculated. If your proposal is for a flat fee, please specify any services that are excluded. Please detail any other fees and expenses you would anticipate billing in connection with this engagement. Discuss the benefit to the Authority of such arrangements and any limitations thereon. Please limit the fee proposal to no more than one page. Part D LEGAL MATTERS AND DISCLOSURE Disclose any pending investigation of the firm and/or any person assigned to this engagement or enforcement or disciplinary actions taken within the past five years by the SEC, FINAA or other regulatory bodies. Indicate if your firm and any person assigned to this engagement is a party to any litigation or investigation or has been notified of an investigation by any federal or state regulatory agency. Describe any client relationship that could be viewed as a potential conflict of interest, if your firm is selected. Please interpret this question broadly. Disclose any professional or personal financial interest which could be a possible conflict of interest in representing the Authority, including any affiliation or relationship with any broker-dealer. Please indicate if your firm is registered as a municipal advisor with the MSRB and if your firm is in compliance with MSRB Rule G-23. In connection with the performance of work under this Agreement, the Proposer agrees not to refuse to hire, discharge, promote or demote, or to discriminate in matters of compensation against any person otherwise qualified, solely because of race, color, religion, national origin, gender, age, military status, sexual orientation, marital status, or physical or mental disability; and further agrees to insert the foregoing provision in all subcontracts hereunder. Page 7 of 10

SECTION IV PROPOSAL SUBMISSION An Original and ten (10) hard copies of the proposal response, as well as, one (1) flash drive containing a copy of the proposal response must be submitted to: Denver Urban Renewal Authority Attn: Robbin Eldredge, Administrative Services Director 1555 California Street Suite 200 Denver, CO 80202 Proposals will be accepted until 4:00 p.m. on October 23, 2015. All questions and clarification requests concerning the Request for Proposal must be submitted via email to reldredge@renewdenver.org. Questions must be submitted no later than October 16, 2015. The submitting firm shall provide name and email address to whom such answers shall be sent. The Authority reserves the right to decline to answer any questions and to provide a combined answer to similar questions. The Authority, if deemed appropriate, will catalogue questions and answers and post on the Authority s website prior to the response due date. SECTION V RFP CONDITIONS If your firm elects to respond to this RFP, submission of your proposal assumes acceptance of the following understandings: All proposals submitted in response to this RFP will become the sole property of the Authority. Timing and sequence of events resulting from this RFP will ultimately be determined by the Authority. Any costs and expenses incurred by respondents in preparing or submitting proposals, including travel expenses incurred to attend meetings or interviews, are the sole responsibility of the respondent. No additions or changes to the original proposal will be allowed after submission. While changes are not permitted, clarification of proposals may be required by the Authority at the respondent s sole cost and expense. Page 8 of 10

The Authority reserves the right to be the sole judge as to the overall acceptability of any proposal as well as the individual merits of specific provisions between competing proposals. All responses to the RFP must conform to these instructions. Failure to include any required information or to comply with any other requirements of this RFP may be considered appropriate cause for rejection of the response. RFP responses may be subject to Colorado Open Records Act. Any information the respondent believes to be proprietary must be clearly identified. In the event of an open records request, responsibility of defending the proprietary nature of the information is solely the respondents. SECTION VI EVALUATION PROCESS The proposal submitted by each firm will be evaluated by a panel using the evaluation criteria set forth below. The panel may consist of representatives from various DURA Board committees and staff. The panel s objective will be to identify and provide a recommendation to the DURA Board of Commissioners that best meets the needs of the Authority. Firms will be evaluated on the basis of their written responses to this RFP, additional written information, if requested by the Authority, and oral interviews, if any, using the following criteria: Experience of the firm and primary contact. The firm s understanding and level of competence in providing insight, staff support, analysis for municipal debt offerings and developing innovative or alternative financing structures will be considered. Qualifications, experience and availability of the primary day-to-day contact and the expertise of the other professionals available to provide service to the Authority. The firm s capacity to apply and commit itself to complete required services on a successful and timely basis. Overall degree of critical understanding of the Authority s financing needs and opportunities. Quantitative expertise and experience of the firm and the staff responsible for work to be performed. Overall quality of the written proposal and oral presentation, if any. The extent to which the proposal broadens the participation of small businesses. Page 9 of 10

SECTION VII SELECTION PROCESS The evaluation panel may select firms for interviews. At the interviews, the firms will be asked to respond to questions from the panel, and each firm will have an opportunity to present their proposal in greater detail. Interviews, if held, will take place at the Denver Urban Renewal Authority during the week of November 2, 2015. The Authority expects the notification of award to occur mid-november, 2015. Selection and Implementation Timeline - RFP Issued October 5, 2015 Deadline for questions, clarifications October 16, 2015 Proposals must be submitted by October 23, 2015 Oral Interviews Week of November 2, 2015 Final Selection & Begin Contract Development Week of November 9, 2015 Contract Approval by Board of Commissioners November 19, 2015 Contract Begins November 19, 2015 Page 10 of 10