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<br /> SCOPE APPENDIX to <br /> Engagement Letter dated: January 25, 2024 <br /> Between the City of Hugo, Minnesota and <br /> Baker Tilly US, LLP <br /> <br /> <br />(Scopev20230309) Page SA - 12 | 18 <br /> <br /> <br />4. EMMA Issuer Homepage (Upon request. Hourly rates will apply.) <br />BTMA will assist the Client on the creation of an Issuer Homepage on EMMA where Client and <br />related entity filings may be shown. The Client will have the option to review the Homepage and <br />provide additional information related to the Client. <br />5. Other post issuance services (Upon Request. Hourly rates will apply.) <br />If requested, BTMA will provide to the Client other post issuance services including, but not limited <br />to, consultation related to disclosure operating procedures, post issuance policies and procedures, <br />and debt management. <br /> <br />E. Housing and Economic Development Services <br />1. Preparation of preliminary tax increment or tax abatement revenues projections for proposed new <br />project. Estimation of future values and tax increments for a targeted area. Forecast the projected <br />tax increment revenues to be generated over the life of the district based on those assumptions. <br />Estimated range of available revenues based on valuations. <br />2. Assist Client with establishment of tax increment financing (TIF) district including drafting of TIF <br />Plan and required notifications, presentations and attendance at workshops and/or public hearings, <br />etc. <br />3. Assist Client with the creation of tax abatement, identification of tax abatement properties, drafting <br />of required notice(s) and supporting documentation, presentations and attendance at workshops <br />and/or public hearings, etc. <br />4. Assist Client with incentive portfolio development and potential for availability of financing tools <br />including review of federal, state, and local tax credits and incentives available. <br />5. Assist Client with financial needs (But-For) analysis through review of developer information and <br />determination on the reasonableness of assumptions. In certain cases, suggest alternative <br />assumptions and provide sensitivity analysis, as necessary. <br />6. Assist Client with completion of rate of return calculation including Cash-on-Cash Return and <br />Internal Rate of Return. Assist Client with defining appropriate level of assistance based on <br />developer’s rates of return comparing developer rate of return to the “market” return for similar <br />projects, commenting on reasonableness of return considering type of project, current market and <br />developer at risk equity. <br />7. Assist Client with negotiating public assistance agreements with developers. <br />8. Provide financial feasibility review to assist Client with assessment of the sufficiency of tax <br />increment/tax abatement and other available revenues to support total project costs based on <br />developer-provided total development costs and project assumptions. As necessary, suggest <br />alternative assumptions and provide sensitivity analysis to assess sufficiency of tax increment or <br />tax abatement revenues to support costs with considerations for timing of financing needs to <br />provide financial support. Prepare cash flow analysis based on sensitivity analysis. <br />9. Provide background developer reviews to assist Client with learning more about prospective <br />developers by performing in-depth business credit analyses, evaluating market conditions, <br />assessing proposed business plans, and checking credentials and references. <br />10. Preparation of tax increment financing (TIF) management program to assist Client with analysis <br />of existing TIF districts that includes an overview of current district status, preparation of cash flow <br />analysis, suggestions for ongoing administrative goals, and recommendations for future <br />opportunities or required compliance items.