06-20-2013 Refinance Buffalo Ridge 1 ProjectMEMORANDUM
Virginia Egger, Town Manager
To: Town Council
Town of Avon, Colorado
From: Calvin Hanson
June 20, 2013
Date:
Re: Refinancing of
Buffalo Ridge I Project
COUNCIL ACTION
BUFFALO RIDGE I PROJECT
In connection with Sherman & Howard L.L.C.'s representation of the Town in the
Buffalo Ridge I matter we request that Town Council approve the execution by the Town
Manager (or other designated official) of the attached engagement letter. The engagement letter
makes clear that Buffalo Ridge I Affordable Housing Corporation will be responsible for
payment of the firm's fees and costs in this matter.
1
PUBFIN /1655799.1
Sherman & Howard L.L.C.
Calvin T. Hanson
Direct Dial Number: (303) 299 -8234
E -mail: chanson @shermanhoward.com
Town of Avon
Attention: Virginia Egger
400 Benchmark Road
Avon, Colorado 81620
Dear Virginia:
ATTORNEYS & COUNSELORS AT LAW
633 SEVENTEENTH STREET, SUITE 3000
DENVER, COLORADO 80202
TELEPHONE: (303)297 -2900
FAX: (303)298 -0940
OFFICES IN COLORADO SPRINGS STEAMBOAT SPRINGS VAIL ASPEN
PHOENIX RENO LAS VEGAS ST LOUIS CASPER
June 3, 2013
We are pleased to confirm our engagement as special counsel to the Town of
Avon (the ' Town ") in connection with the amendment of documents and other transactions
related to the Buffalo Ridge Affordable Housing Corporation's (the "Corporation ") Buffalo
Ridge 1 1AL11tilamily Housing Project refinancing (the "Transaction "). We appreciate your
confidence in us and will do our best to continue to merit it. This letter sets forth the role we
propose to serve and the responsibilities we propose to assume in advising the Town in
connection with the "Transaction.
Personnel. Calvin Hanson will be principally responsible for the work performed
by Sherman & Howard L.L.C. in connection with this engagement and he will report to and take
direction from you, in your capacity as Town Attorney. Where appropriate, certain tasks may
be performed by other attorneys or paralegals. At all times, however, Calvin Hanson will
coordinate, review, and approve all work completed for the Town.
Scope of Services. In connection with the Transaction, it will be our
responsibility to review, on behalf of the Town, the Transaction including, the Amended and
Restated Buffalo Ridge Affordable Housing Project Agreement, among the Town, the
Corporation and CBRE HMF, Inc., as Mortgage Lender, records and instruments, and
applicable law. We will consult with you concerning the Town's responsibilities and
obligations in connection with this transaction. In representing the Town in this matter, our
services may include research, phone consultations, meetings, preparation of memoranda. Our
services do not include attending any hearings or conducting litigation. Our services as special
counsel are limited to those contracted for explicitly herein; and the City Manager's execution
of this letter constitutes an acknowledgment of those limitations.
Sherman & Howard L.L.C.
Town of Avon
June 3, 2013
Page 2
Attorney - Client Relationship. In performing our services as special counsel, the
Town will be our client. We will represent the interests of the Town rather than the Town
Council, the Council's individual members, or the Town's employees.
Conflicts of Interest. Our firm sometimes represents, in other unrelated
transactions, certain of the financial institutions that may be involved in this Transaction, such
as underwriters, credit enhancers, and banks. We do not believe that any of these
representations will materially limit or adversely affect our ability to represent the Town in
connection with this financing, even though such representations may be characterized as
adverse under the Colorado Rules of Professional Conduct (the "Rules "). In any event, during
the term of our engagement hereunder, we will not accept a new representation of any of these
parties in any matter in which the Town is an adverse party. However, pursuant to the Rules,
we do ask that you consent to our representation of such parties in transactions that do not
directly or indirectly involve the Town. Your execution of this letter will signify the Town's
prospective consent to the above - described adverse representations in matters unrelated to the
Transaction while we are serving as counsel hereunder.
Fee Arrangement. Based upon: (i) our current understanding of the terms,
structure, size and schedule of the financing, (ii) the responsibilities we will undertake pursuant
to this letter, (iii) the time we anticipate devoting to the financing, and (iv) the skill and
experience required to complete the services properly, we estimate that our fee will be in the
range of $1 0,000 to $25,000. Such fee may vary: (i) if material changes in the structure of the
Transaction occurs, or (ii) if unusual or unforeseen circumstances arise which require a
significant increase in our time or our responsibilities. If, at any time, we believe that
circumstances require an adjustment of our original fee estimate, we will consult with you.
In addition, this letter authorizes us to make disbursements on behalf of the
Town. We will bill for such expenses at cost, including such items as photocopying, facsimile
transmission charges, computer assisted research, deliveries and other miscellaneous expenses.
We will submit a fee statement at the conclusion of our representation of the Town.
Calvin Hanson's hourly rate is $490. It is possible that other attorneys and legal
assistants will assist in certain aspects of our representation at a lower hourly rate. Our hourly
rates are increased periodically, generally at year end. If the firm increases rates during this
engagement, we will provide you written notice of those changes for the personnel working on
this engagement and we will charge at the adjusted rates for work performed after the change.
Such changes will be reflected on our invoices.
The Corporation, as evidenced below, agrees to pay our fees and expenses. We
do not believe that such fee arrangement will interfere with our independence of professional
judgment or our attorney - client relationship with the Town.
Sherman & Howard L.L.C.
Town of Avon
June 3, 2013
Page 3
Document Retention. At or within a reasonable period after the conclusion of
our representation hereunder, we will review the file to determine what materials should be
retained as a record of our representation and those that are no longer needed. We will return
any original documents obtained from you. We will retain for several years a copy of such
materials as correspondence, final substantive work product, documents obtained from you, and
documents obtained from third parties. We will not retain such materials as duplicates of the
above - described material, or drafts and notes that do not appear needed any longer.
Ordinarily the firm will keep the retained materials until seven years after the
conclusion of our representation. At the end of that time, unless you advise us in writing to the
contrary, we will destroy the bulk of the file. If the file is especially voluminous, we may
destroy all or portions of it earlier, as our storage facilities are limited. If you prefer other
arrangements for retention or disposition of our files in this matter, please advise us in writing.
Termination of Engagement. Upon completion of our services as outlined in this
letter, our responsibilities as special counsel will terminate and our representation of the Town
and the attorney- client relationship created by this engagement letter will be concluded. Should
the Town seek other, additional legal services, we would be happy to discuss the nature and
extent of our separate engagement at that time.
Approval. If the foregoing terms of this engagement are acceptable to you,
please so indicate by returning the duplicate original of this letter signed by you, retaining the
other original for your files.
We are pleased to have the opportunity to serve as your special counsel and look
forward to a mutually satisfactory and beneficial relationship. If at any time you have questions
concerning our work or our fees, we hope that you will contact us immediately.
SHERMAN & HOWARD L.L.C.
B 1� /
Y•
Sherman & Howard L.L.C.
Town of Avon
June 3, 2013
Page 4
Accepted and Approved:
TOWN OF AVON, COLORADO
ry`
By: er✓ r
Town P'vI ag r
Date:
BUFFALO RIDGE AFFORDABLE HOUSING CORPORATION HERE BY AGREES TO
THE TERMS OF THIS ENGAGEMENT, ACKNOWLEDGES THAT SHERMAN &
HOWARD L.L.C. REPRESENTS ONLY THE TOWN AND NOT THE CORPORATION IN
CONNECTION WITH THE BONDS, AND AGREES TO PAY THE FEES AND EXPENSES
OF SHERMAN & HOWARD L.L.C. AS DESCRIBED ABOVE.
BUFFALO RIDG AFFORDABLE HOUSING
CORPORATION`
//
Title: I 'T "6k Ax � L �
Date: x / 7`/ /-3
CTH
Enclosures
cc: Buffalo Ridge Affordable Housing Corporation
PUB FIN/ 1650689.1
Sherman & Howard L.L.C.
Calvin T. Hanson
Direct Dial Number: (303) 299 -8234
E -mail: chanson @shermanhoward.com
Town of Avon
Attention: Virginia Egger
400 Benchmark Road
Avon, Colorado 81620
Dear Virginia:
ATTORNEYS & COUNSELORS AT LAW
633 SEVENTEENTH STREET, SUITE 3000
DENVER, COLORADO 80202
TELEPHONE: (303) 297 -2900
FAX: (303) 298 -0940
W W W.SHERMANHO WARD.COM
June 3, 2013
We are pleased to confirm our engagement as special counsel to the Town of
Avon (the "Town ") in connection with the amendment of documents and other transactions
related to the Buffalo Ridge Affordable Housing Corporation's (the "Corporation ") Buffalo
Ridge I Multifamily Housing Project refinancing (the "Transaction "). We appreciate your
confidence in us and will do our best to continue to merit it. This letter sets forth the role we
propose to serve and the responsibilities we propose to assume in advising the Town in
connection with the Transaction.
Personnel. Calvin Hanson will be principally responsible for the work performed
by Sherman & Howard L.L.C. in connection with this engagement and he will report to and take
direction from you, in your capacity as Town Attorney. Where appropriate, certain tasks may be
performed by other attorneys or paralegals. At all times, however, Calvin Hanson will
coordinate, review, and approve all work completed for the Town.
Scope of Services. In connection with the Transaction, it will be our
responsibility to review, on behalf of the Town, the Transaction including, the Amended and
Restated Buffalo Ridge Affordable Housing Project Agreement, among the Town, the
Corporation and CBRE HMF, Inc., as Mortgage Lender, records and instruments, and applicable
law. We will consult with you concerning the Town's responsibilities and obligations in
connection with this transaction. In representing the Town in this matter, our services may
include research, phone consultations, meetings, preparation of memoranda. Our services do not
include attending any hearings or conducting litigation. Our services as special counsel are
limited to those contracted for explicitly herein; and the City Manager's execution of this letter
constitutes an acknowledgment of those limitations.
2
01695079.3
4826 - 6746 - 7796.1
PUBFIN /1655799.1
Attorney- Client Relationship. In performing our services as special counsel, the
Town will be our client. We will represent the interests of the Town rather than the Town
Council, the Council's individual members, or the Town's employees.
Conflicts of Interest. Our firm sometimes represents, in other unrelated
transactions, certain of the financial institutions that may be involved in this Transaction, such as
underwriters, credit enhancers, and banks. We do not believe that any of these representations
will materially limit or adversely affect our ability to represent the Town in connection with this
financing, even though such representations may be characterized as adverse under the Colorado
Rules of Professional Conduct (the "Rules "). In any event, during the term of our engagement
hereunder, we will not accept a new representation of any of these parties in any matter in which
the Town is an adverse party. However, pursuant to the Rules, we do ask that you consent to our
representation of such parties in transactions that do not directly or indirectly involve the Town.
Your execution of this letter will signify the Town's prospective consent to the above - described
adverse representations in matters unrelated to the Transaction while we are serving as counsel
hereunder.
Fee Arran ems. Based upon: (i) our current understanding of the terms,
structure, size and schedule of the financing, (ii) the responsibilities we will undertake pursuant
to this letter, (iii) the time we anticipate devoting to the financing, and (iv) the skill and
experience required to complete the services properly, we estimate that our fee will be in the
range of $10,000 to $25,000. Such fee may vary: (i) if material changes in the structure of the
Transaction occurs, or (ii) if unusual or unforeseen circumstances arise which require a
significant increase in our time or our responsibilities. If, at any time, we believe that
circumstances require an adjustment of our original fee estimate, we will consult with you.
In addition, this letter authorizes us to make disbursements on behalf of the Town.
We will bill for such expenses at cost, including such items as photocopying, facsimile
transmission charges, computer assisted research, deliveries and other miscellaneous expenses.
We will submit a fee statement at the conclusion of our representation of the Town.
Calvin Hanson's hourly rate is $490. It is possible that other attorneys and legal
assistants will assist in certain aspects of our representation at a lower hourly rate. Our hourly
rates are increased periodically, generally at year end. If the firm increases rates during this
engagement, we will provide you written notice of those changes for the personnel working on
this engagement and we will charge at the adjusted rates for work performed after the change.
Such changes will be reflected on our invoices.
The Corporation, as evidenced below, agrees to pay our fees and expenses. We
do not believe that such fee arrangement will interfere with our independence of professional
judgment or our attorney - client relationship with the Town.
Document Retention. At or within a reasonable period after the conclusion of our
representation hereunder, we will review the file to determine what materials should be retained
as a record of our representation and those that are no longer needed. We will return any original
documents obtained from you. We will retain for several years a copy of such materials as
correspondence, final substantive work product, documents obtained from you, and documents
3
01695079.3
4826 - 6746 - 7796.1
PUBFIN /1655799.1
obtained from third parties. We will not retain such materials as duplicates of the above -
described material, or drafts and notes that do not appear needed any longer.
Ordinarily the firm will keep the retained materials until seven years after the
conclusion of our representation. At the end of that time, unless you advise us in writing to the
contrary, we will destroy the bulk of the file. If the file is especially voluminous, we may
destroy all or portions of it earlier, as our storage facilities are limited. If you prefer other
arrangements for retention or disposition of our files in this matter, please advise us in writing.
Termination of Engagement. Upon completion of our services as outlined in this
letter, our responsibilities as special counsel will terminate and our representation of the Town
and the attorney - client relationship created by this engagement letter will be concluded. Should
the Town seek other, additional legal services, we would be happy to discuss the nature and
extent of our separate engagement at that time.
Approval. If the foregoing terms of this engagement are acceptable to you, please
so indicate by returning the duplicate original of this letter signed by you, retaining the other
original for your files.
We are pleased to have the opportunity to serve as your special counsel and look
forward to a mutually satisfactory and beneficial relationship. If at any time you have questions
concerning our work or our fees, we hope that you will contact us immediately.
SHERMAN & HOWARD L.L.C.
By: /s/ Calving T. Hanson
4
01695079.3
4826 - 6746 - 7796.1
PUBFIN /1655799.1
Accepted and Approved:
TOWN OF AVON, COLORADO
Date:
BUFFALO RIDGE AFFORDABLE HOUSING CORPORATION HERE BY AGREES TO
THE TERMS OF THIS ENGAGEMENT, ACKNOWLEDGES THAT SHERMAN &
HOWARD L.L.C. REPRESENTS ONLY THE TOWN AND NOT THE CORPORATION IN
CONNECTION WITH THE BONDS, AND AGREES TO PAY THE FEES AND EXPENSES
OF SHERMAN & HOWARD L.L.C. AS DESCRIBED ABOVE.
BUFFALO RIDGE AFFORDABLE HOUSING
CORPORATION
Title:
Date:
CTH
Enclosures
cc: Buffalo Ridge Affordable Housing Corporation
5
01695079.3
4826 - 6746 - 7796.1
PUBFIN /1655799.1