10-01-03 La Porte Redevelopment Authority Meeting minutes

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FINANCIAL ADVISORY AGREEMENT This Financial Advisory Agreement (the "Agreement") is made and entered into by and between La Porte Redevelopment Authoritv ("Issuer") and First Southwest Comoanv ("FSC") effective as ofthe date AGENDA ITEMS 5 & 6: CONSIDER APPROVAL OR OTHER ACTION REGARDING PROFESSIONAL SERVICES AGREEMENT RETAINING SERVICES OF FINANCIAL ADVISOR AND BOND AND GENERAL COUNSEL Both staff and our consultant, David Hawes, have reviewed the proposed Agreement for services provided by 1st Southwest Company and Andrews/Kurth, LLP. Mr. Hawes has noted that these agreements are typical of the professional services agreements these firms have with other Redevelopment Authorities and the fee schedules are also in line. Mr. Hawes did note the Financial Advisors fees are higher than typical municipal work because of the complexities of the TIRZ and the amount of documentation that has to be provided. The good news is that after the initial bond sale, the fees for subsequent bond sales would be lower on a percentage basis because much of the initial documentation is repetitive. Regarding the Andrews/Kurth Agreement, please note the reference to their representation of the Houston Port Authority. This is to obviously notify the Redevelopment Authority that they represent the Port of Houston (and potentially other clients) and by consent the firm would continue to represent the Port of Houston in matters not substantially related to work performed for the Authority. However, the consent does not apply to proprietary, confidential or non-public information obtained by Andrews/Kurth while representing the Authority. The TIRZ Project Plan and its implementation does not conflict with any known plans for development by the Port of Houston. Note City Council (which would approve future bond sales) wrote letters to the ACOE objecting to certain findings contained in the EIS and recommending consideration of other sites for the proposed terminal facility. However, Andrews/Kurth's representation ofthe Port of Houston and any known Port of Houston projects should not conflict with the TIRZ Project Plan or duties as Bond Counsel. Each of these agreements has been reviewed by Hawes Hill & Associates and the Authority's Ex-Officio Members (Debra Feazelle, Cynthia Alexander and Knox Askins). While the 1st Southwest Agreement contained a specific term of 5 years (plus I-year extensions) the Andrews/Kurth Agreement did not. However, more importantly, each agreement contains a 30- day termination clause (for convenience). Action To consider approval or other action of agenda item 5 retaining the services of I st Southwest _ . ... . ... . c..1I