Request for Proposals for the analysis of Tax Increment Financing in Indiana
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1 Request for Proposals for the analysis of Tax Increment Financing in Indiana June 29, 2015
2 TABLE OF CONTENTS Overview... 2 Project Overview... 2 Scope of Work... 3 Task #1 Opportunity & Discovery... 3 Task #2 Prepare Draft Report... 3 Task #3 Review of Draft Report by Steering Committee... 4 Task #4 - Final Report and Recommendations... 4 Research Team s Responsibilities... 5 Information to be Submitted in Proposal... 5 Evaluation of Final Proposals... 6 Selection Process... 6 Mandatory Conference Call.7 Timelines... 7 Inquiries... 8 Proposal Due Date and Submission...8 Rejection of Proposals... 8 Award of Contract... 9 Organization and Authority P a g e
3 OVERVIEW One of the key roles of state and local government is to help create an economic climate where existing and new businesses want to invest. As part of that process, meaningful discussion needs to occur regarding what economic development tools can be either strengthened or implemented to improve Indiana s economy. To date, no definitive or useful analysis has been completed to determine the relative effectiveness of Tax Increment Financing (TIF) in Indiana. There also have been no objective recommendations coming from research on how to improve local Indiana tax incentives so as to grow the state and regional economies. The Indiana Economic Development Association (IEDA) is initiating research into the effectiveness of Tax Increment Financing in Indiana: we believe that previous studies conducted over the years have not adequately addressed the complex nature of this activity and were plagued with data collection and methodology problems making many of these studies difficult to use as tools for objectively evaluating state and local tax incentive policy. Like many Indiana elected officials, the IEDA believes that local tax incentives such as TIF is an effective tool to enhance population growth, expand the workforce, increase assessed value of property, and improve per capita income. The IEDA recognizes the importance of verifying any such beliefs with a completely independent study conducted by a qualified research institution. PROJECT OVERVIEW The Indiana Economic Development Association is seeking qualified researchers to develop a comprehensive and rigorous study/analysis that will allow policy-makers to gain a better understanding of the use and implications of Tax Increment Financing. The resulting study will be academically rigorous and able to withstand peer review and academic scrutiny. Ideally, the research team will include researchers with previous experience analyzing economic aspects of Indiana as well as objective researchers with appropriate expertise from outside the state of Indiana. The study will contain, but not be limited to, an analysis of urban, suburban and rural TIF projects over a specified time period to determine impacts on local employment, investment, assessed value, tax revenue streams, infrastructure etc.; and, will explore the extended impact on rural and suburban communities from nearby urban development. The project will also collect representative case studies of TIF projects to create a collection of TIF examples considered successful as well as those not considered successful. A key consideration to the success of the research engagement will be to develop an objective set of recommendations that can be easily explained to state and local 2 P a g e
4 stakeholders thus facilitating their implementation into appropriate tax legislation and policy. SCOPE OF WORK Task #1 OPPORTUNITY AND DISCOVERY Basic questions to be addressed by the study will include, but not be limited to, the types of projects in Indiana for which TIF has been used to attract new investment; the associated number of jobs enticed; and, the resulting wage levels. Criteria for analyzing projects should be, but not be limited to, such criteria as: (a) Increase in assessed value; (b) New jobs and associated payroll; (c) Other types of new taxes generated (local income taxes, food & beverage taxes, hotel/motel taxes, etc.); (d) Funding of infrastructure improvements; (e) Multiplier effects on other businesses and economic activity (demand for retail, housing, etc.), assessed property value that might pass-through practices and impacts, i.e., how much incremental assessed value is currently being passed through and what positive impact has that had on other taxing unit; (f) Assessment of strengths and weaknesses of TIF in Indiana and recommendations for program improvements, (g) The collective impact of other economic development incentive tools, e.g., tax abatement in combination with TIF; and, (h) The study will look at TIF within the context of the local revenue system of both property taxes and income taxes, especially in those counties that use income tax to subsidize property taxes. Through case studies, researchers might also consider how a community might fund infrastructure without TIF and what tools exist or would need to exist. As part of the discovery process, the research team should review previous published scholarly and practitioner literature on TIFs. Researchers also will be asked to address and analyze technical issues in the implementation of the current Indiana TIF statute, including the annual TIF neutralization process and the impact of changes to the property tax laws on the collection of TIF revenues, and to make recommendations for reform (if appropriate). As part of the planning and discovery process, the research team may choose to coordinate a series of briefings/meetings with key stakeholders as an opportunity to discover additional information and/or data that had not been identified in previous studies. Briefings/meetings should be structured to create an efficient format and briefing materials will be ed to participants in advance. 3 P a g e
5 Task #2 PREPARE INITIAL DRAFT REPORT The research team will prepare and draft an initial report. The initial draft report will outline the initial findings along with possible tax policy recommendations. The initial draft report will include information outlined above and will be data driven and objective. Task #3 REVIEW OF INITIAL DRAFT RPORT BY STEERING COMMITTEE The research team will support a process for a critique and review of the initial draft report by the study steering committee and key stakeholders. Services will include, but not be limited to, the following: Provide an electronic version of the initial draft report to the study steering committee in advance of the review event. Provide technical assistance and support with regard to presenting the initial draft report to the steering committee. Prepare a summary of comments, questions and feedback from the study steering committee and key stakeholders meeting review that will be shared with committee members and narrative summarizing anticipated adjustments for preparing revised draft report. Task #4 FINAL REPORT AND RECOMMENDATIONS The research team will develop a final report or brief, taking into account the comments, questions and feedback posed by the Steering Committee and key stakeholders in the course of their review. A key component to this task will be specific tax policy recommendations and their impacts. Efforts will focus on articulating the value proposition and transformative nature of proposed recommendations. The selected research team will deliver one (1) unbound copy and one (1) electronic copy of their final report to the IEDA. Any photos or graphics designed to be used for marketing materials shall be in an electronic form commonly used by most computer software and shall not require the purchase of Adobe Photoshop or some other marketing-based software to enable such use. In addition, the selected research team will be required to make a number of formal, in person presentations to stakeholders at the completion of the project to present their final report. The final number of presentations will be negotiated and the research team will be reimbursed for expenses associated with these presentations. 4 P a g e
6 RESEARCH TEAM S RESPONSIBILITIES At the beginning of the project the selected research team shall meet with IEDA staff and steering committee members to discuss the approach and method to proceed. The research team will work with the IEDA staff and steering committee members to review the progress of the work, to discuss any changes in direction or needed details; and, in general to ensure that work is proceeding as required. It is strongly recommended that the selected research team review all prior TIF and tax abatement related studies recently completed by other appropriate research entities as these could prove critical to objective evaluation of local Indiana tax incentives. INFORMATION TO BE SUBMITTED IN PROPOSAL The following minimum information should be provided in each proposal and will be utilized in evaluating each proposal submitted. Proposals should explain the proposed methodology and provide a detailed work plan to achieve the required objective(s), and include the following items: A proposed approach for undertaking the project, detailed timeline for completion of each phase and the total project, meetings, associated fees and expenses under the scope of services; The IEDA and their partners have not set a specific budget for the project as it will be the responsibility of each research team to prepare a detailed cost estimate for their services based on the scope of work outlined within the RFP; The team s statement of qualifications; Biographies with related expertise of the specific research team member who will function as the project manager and any other research team members or subcontractor s biography with related expertise and experiences; Brief description of the last three completed projects which demonstrate the research team's current experience in working with similar clients and ability to complete projects of a similar size, scope, and purpose in a timely manner and any other completed projects (representative examples) of similar types of projects. 5 P a g e
7 Include current address, telephone number(s), and the names of reference contacts for each project. Similar project descriptions should be submitted for all subcontractor(s); and, Statement as to the research team's availability and ability to meet the time frame established. EVALUATION OF FINAL PROPOSALS Research teams that submit proposals will be evaluated for further consideration on the basis of the following criteria. The content of the proposals must provide sufficient detail to enable the review committee to evaluate proposals on the basis of the criteria listed below. Qualifications. Teams will be evaluated on the basis of experience in performing similar projects. References will be used to assist in this evaluation. Understanding of project. Teams will be evaluated on the basis of how well they communicate an understanding of the research project outlined in this RFP. Approach to project. Proposals will be evaluated on how the proposed project meets the objectives of the IEDA and its partners and the proposer s understanding of available data and their approach for gathering the data. Quality of work. Proposals will be judged on the apparent quality of the work performed in similar situations. References will be used to determine the research teams ability to deliver the results expected. Personnel. Proposals will be evaluated on the personnel assigned to the project. Specific attention will be placed on personnel who have similar project experience and qualifications to perform the tasks outlined in the RFP. Value. Proposals will be evaluated on the basis of the approach that will position the IEDA to obtain results and achieve the most success within the framework identified in the proposal ultimately providing Indiana with a significant economic development planning tool and analysis. Cost. Proposals will be evaluated on the cost estimate provided in relation to the scope of services outlined. SELECTION PROCESS The IEDA and its partners have the sole authority to select a research team or consortia of research teams for this project and reserve the right to reject any and all proposals. A Review Committee will be established to review and evaluate the submitted proposals 6 P a g e
8 based on the criteria outlined above. Additionally, the committee may, in its sole discretion and in the course of its evaluation, request presentations/demonstrations with one or more selected research teams. Although cost is a factor, it will not be the dominant factor. The IEDA and its partners reserve the right to continue negotiations after submission of the proposals. In addition, the IEDA and its partners reserve the right to retain all proposals submitted and to use any ideas in a proposal, regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the proposing University Research Team of the conditions contained in this request for qualifications, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the IEDA and the research team selected. All research teams will be notified of the status of the review process, and some, but not necessarily all, may be asked to participate in an interview process, if any, prior to selecting the successful research team or consortia of research teams. MANDATORY CONFERENCE CALL All proposers are required to participate in a mandatory conference call on July 10, 2015, 1:30 pm (EST). This call is intended to provide a common clarification to any outstanding questions about this project, resolve any concerns or issues, and to assure that all proposers have a common understanding of the intent, scope, and process of this project. Proposers should submit an intent to bid to llewellen@ieda.org by Noon (EST) on July 8, Note: not all partners to a proposal need to be included on this call, but no proposals will be accepted from a research team that does not have at least one representative participate in this call. TIMELINES The Research Team will be prepared to begin the work immediately upon receipt of the fully Executed Agreement from the IEDA. The Research Team will perform the services per the schedule below: Intent to Bid Notification.July 8, 2015 Mandatory Bidder s Conference Call July 10, 2015 Deadline for Proposal Submission...July 31, 2015 Interviews...week of August 10, 2015 Contractor Engagement....August 17, 2015 Initial Draft for Review....December 4, 2015 Presentation to Working Group and Steering Committee December 11, 2015 Final Report December 31, P a g e
9 INQUIRIES All inquiries must be made in writing and IEDA reserves the right to distribute all questions and responses to all potential proposers. Please direct all inquiries concerning this RFP in to: Lee Lewellen Chief Executive Officer IEDA Foundation 125 West Market Street, Suite 300 Indianapolis, IN Telephone: PROPOSAL DUE DATE AND SUBMISSION Two (2) unbound copies and one (1) electronic copy of your proposal must be received by the IEDA no later than 4:00 p.m. (EST) on Friday, July 31, All proposals shall be submitted to: Lee Lewellen Chief Executive Officer IEDA Foundation 125 West Market Street, Suite 300 Indianapolis, IN Telephone: Any proposal received after the specified closing date will not be considered. All submissions must be complete in every respect and must answer concisely as well as clearly all questions proposed by the RFP. The IEDA reserves the right to request additional information, as it deems necessary, for the evaluation of the proposals. REJECTION OF PROPOSALS The IEDA reserves the right to reject and negotiate any or all proposals received in response to this RFP. The IEDA will not pay for any information requested, nor is it liable for any costs incurred by the respondents in preparing and submitting a proposal. 8 P a g e
10 AWARD OF CONTRACT Award of contract, if any, will be to the respondent whose proposal for services and professional qualifications are determined by the IEDA and its partners to most fully comply with all the requirements of the RFP and any addenda thereto. The IEDA and its partners may select one or more research team. The selected research team will be required to enter into a Professional Services Agreement with the IEDA within thirty (30) business days of notification date of acceptance by the IEDA. Written or electronic notification of the IEDA s intent to award the contract to a particular respondent will be made to all respondents. ORGANIZATION AND AUTHORITY The IEDA and its partners shall retain its authority to provide direction to the project, monitor the progress and recommend acceptance of final submissions to Steering Committee. All intellectual property acquired from the study will become the property of the Indiana Economic Development Association Foundation. 9 P a g e
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