CECD POSSIBLE ESSAY MATERIAL:REAL,FINANCE,BRE EXAM WITH
CORRECT ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST ALREADY GRADED A+
Real Estate Development and Reuses Objectives: - (answer)1. Understanding of the development
process;
2. A familiarity with the policies and programs that state, local, and public private economic
development organizations and agencies can use to encourage and help finance development;
3. An understanding of how to analyze cash flow and income statements, and how to assess project
feasibility;
4. Knowledge of site analysis and land assembly;
5. A familiarity with current environmental rules and regulations;
6. An understanding of regulatory constraints and incentives;
7. An understanding of the process to solicit and select a developer.
When working with a Consultant and Developer an EDO will enroll a selection panel: - (answer)Often in
conducting a search for a consultant or a developer, an EDO will enroll a selection panel representing
various stakeholders to review candidate qualifications, analyze project proposals, and recommend a
preferred consultant.
These selection panels come in all sizes and configurations. Members of the board of the EDO may
perform this function, community leaders may sit on selection panels, or sometimes there is a panel
with a host of diverse perspectives represented. In some cases the city council or town board becomes
the selection panel.
The critical issue in forming the selection panel is avoiding a lopsided panel in favor of the project and
representative of only a narrow and limiting perspective.
Homework needs to be done in providing in-depth education about the project, clear guidelines about
the process, and decision making procedures.
Selection panels need staff - that is, some person who can serve as staff to the panel: coordinating,
arranging, communicating, etc. This requires a great deal of work .
,CECD POSSIBLE ESSAY MATERIAL:REAL,FINANCE,BRE EXAM WITH
CORRECT ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST ALREADY GRADED A+
If the decision is made to hire a consultant, the development agency should c1early identify the problem
and determine what the consultant's end product should be. Before approaching a consultant, the
agency should define the following: - (answer)• Goals and objectives of the consulting product;
• Process for finding and selecting consultants
• Problems, challenges, and issues that need consulting support;
• Technical, administrative and political constraints;
• Role of the agency in the consulting effort;
• Budget and schedule for consulting services;
• Work tasks to be accomplished;
Consultants are identified: - (answer)Consultants are identified from personal referrals, professional
association directories, trade magazines that feature directories and advertisements, literature mailed to
agencies, and on websites, such as WWW.iedconline.org. Most valuable is the professional contacts that
one makes with other professionals in various activities. Many times it helps to ask other colleagues who
they used and their level of satisfaction with a certain consultant.
Consultants can provide a number of services and are often retained to complete feasibility analyses. -
(answer)Not only do they bring a further measure of objectivity, but they can lend additional expertise
that gives the analysis further credibility. The type of consultant chosen should reflect the problem that
needs to be addressed. For example, if the EDO requires detailed architectural consultation or wants to
know if a project is market feasible, it is wise to select architects and market feasibility consultants,
respectively, who have strong private sector experience and are currently serving developers and
investors. If on the other hand an EDO desires more of a policy approach to problem solving, then a
consultant that specializes in economic development policy may be the right choice.
Consultants can be selected through several processes: - (answer)1. Sole-source
2. Pre-qualified Candidate List
3. Request for Proposal (RFP)
,CECD POSSIBLE ESSAY MATERIAL:REAL,FINANCE,BRE EXAM WITH
CORRECT ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST ALREADY GRADED A+
Sole-source: - (answer)For the sole-source scenario, a consultant is selected without a formal
competitive process. Sole sourcing mayor may not be legal, depending on local and state statutes. Some
statutes specify a dollar amount over which the consulting assignment must be competitively bid. If
federal funds are used, there must be a documented selection process. The advantage of sole sourcing is
that the consultant can be retained quickly. For legal and political reasons, any agency retaining sole-
source consultants should carefully document their reasons for doing so.
Pre-qualified Candidate List: - (answer)Consultants are sometimes selected from a list of pre-qualified
candidates. Many agencies maintain a list of consultants that are pre-qualified to perform certain
functions. The agency chooses several to submit a statement on how they would approach the problem,
interviews them, and selects the best qualified candidate.
The request for qualifications (RFQ) is similar to selecting from a pre-qualified list, except that there is an
official announcement and often a more rigorous selection procedure. The announcement, say in trade
publications, would help the agency add to its existing pool of candidates.
It is useful to have a stable of pre-qualified consultants who can move quickly. Again, time is money.
EDOs should seek to review qualifications annually.
Request for Proposal (RFP): - (answer)The most rigorous selection process is the RFP. It is recommended
that the issuing agency distribute the RFP to as many groups or entities as possible. The consultant must
submit a full proposal to be considered. The RFP typically is advertised, mailed to a list of possible
consultants, and posted on the website.
The RFP clearly explains the project specifications, discussed previously, that the agency prepares before
retaining a consultant.
In addition, there should be a description of the project and services required. The description of
required services is very important because consultants will base their response to the proposal on that
description.
, CECD POSSIBLE ESSAY MATERIAL:REAL,FINANCE,BRE EXAM WITH
CORRECT ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST ALREADY GRADED A+
It should be clearly written and consistent with other parts of the RFP. In describing the proposed tasks,
the RFP should provide enough detail, including the number of required meetings with agency officials,
for the consultant to make realistic cost estimates.
The RFP not only conveys information but also acts as a marketing tool. A good RFP should be well
organized and written so that it encourages the consultant to invest time and money into a thoughtful
response. The RFP should include
instructions for submission. Such instructions should include the time, date, and location of submission,
as well as submission requirements such as a cost proposal, and an outline of what should be provided in
the consultant proposal.
Agencies may wish to include budget information or set a budget. Alternatively, they may ask the
consultant to propose a budget and make the consultant's cost one of the selection criteria. By excluding
the budget, the agency encourages the consultant to price their response competitively. However, it is
difficult to compare responses with wide variations in budget. Therefore, agencies may wish to provide a
budget range or have a target budget
Selection criteria include the consultant's: - (answer)• Understanding of the project;
• Approach to the project;
• Experience with similar assignments;
• Staff qualifications for the project;
• Clarity of proposal;
• References and contacts from prior project engagements.
The RFP should require the following from the consultant: - (answer)• Listing of the tasks the consultant
is assuming;
• Work plan;
• Specific responsibilities of consultant's staff;
• Detailed timeline and list of deliverables;
CORRECT ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST ALREADY GRADED A+
Real Estate Development and Reuses Objectives: - (answer)1. Understanding of the development
process;
2. A familiarity with the policies and programs that state, local, and public private economic
development organizations and agencies can use to encourage and help finance development;
3. An understanding of how to analyze cash flow and income statements, and how to assess project
feasibility;
4. Knowledge of site analysis and land assembly;
5. A familiarity with current environmental rules and regulations;
6. An understanding of regulatory constraints and incentives;
7. An understanding of the process to solicit and select a developer.
When working with a Consultant and Developer an EDO will enroll a selection panel: - (answer)Often in
conducting a search for a consultant or a developer, an EDO will enroll a selection panel representing
various stakeholders to review candidate qualifications, analyze project proposals, and recommend a
preferred consultant.
These selection panels come in all sizes and configurations. Members of the board of the EDO may
perform this function, community leaders may sit on selection panels, or sometimes there is a panel
with a host of diverse perspectives represented. In some cases the city council or town board becomes
the selection panel.
The critical issue in forming the selection panel is avoiding a lopsided panel in favor of the project and
representative of only a narrow and limiting perspective.
Homework needs to be done in providing in-depth education about the project, clear guidelines about
the process, and decision making procedures.
Selection panels need staff - that is, some person who can serve as staff to the panel: coordinating,
arranging, communicating, etc. This requires a great deal of work .
,CECD POSSIBLE ESSAY MATERIAL:REAL,FINANCE,BRE EXAM WITH
CORRECT ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST ALREADY GRADED A+
If the decision is made to hire a consultant, the development agency should c1early identify the problem
and determine what the consultant's end product should be. Before approaching a consultant, the
agency should define the following: - (answer)• Goals and objectives of the consulting product;
• Process for finding and selecting consultants
• Problems, challenges, and issues that need consulting support;
• Technical, administrative and political constraints;
• Role of the agency in the consulting effort;
• Budget and schedule for consulting services;
• Work tasks to be accomplished;
Consultants are identified: - (answer)Consultants are identified from personal referrals, professional
association directories, trade magazines that feature directories and advertisements, literature mailed to
agencies, and on websites, such as WWW.iedconline.org. Most valuable is the professional contacts that
one makes with other professionals in various activities. Many times it helps to ask other colleagues who
they used and their level of satisfaction with a certain consultant.
Consultants can provide a number of services and are often retained to complete feasibility analyses. -
(answer)Not only do they bring a further measure of objectivity, but they can lend additional expertise
that gives the analysis further credibility. The type of consultant chosen should reflect the problem that
needs to be addressed. For example, if the EDO requires detailed architectural consultation or wants to
know if a project is market feasible, it is wise to select architects and market feasibility consultants,
respectively, who have strong private sector experience and are currently serving developers and
investors. If on the other hand an EDO desires more of a policy approach to problem solving, then a
consultant that specializes in economic development policy may be the right choice.
Consultants can be selected through several processes: - (answer)1. Sole-source
2. Pre-qualified Candidate List
3. Request for Proposal (RFP)
,CECD POSSIBLE ESSAY MATERIAL:REAL,FINANCE,BRE EXAM WITH
CORRECT ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST ALREADY GRADED A+
Sole-source: - (answer)For the sole-source scenario, a consultant is selected without a formal
competitive process. Sole sourcing mayor may not be legal, depending on local and state statutes. Some
statutes specify a dollar amount over which the consulting assignment must be competitively bid. If
federal funds are used, there must be a documented selection process. The advantage of sole sourcing is
that the consultant can be retained quickly. For legal and political reasons, any agency retaining sole-
source consultants should carefully document their reasons for doing so.
Pre-qualified Candidate List: - (answer)Consultants are sometimes selected from a list of pre-qualified
candidates. Many agencies maintain a list of consultants that are pre-qualified to perform certain
functions. The agency chooses several to submit a statement on how they would approach the problem,
interviews them, and selects the best qualified candidate.
The request for qualifications (RFQ) is similar to selecting from a pre-qualified list, except that there is an
official announcement and often a more rigorous selection procedure. The announcement, say in trade
publications, would help the agency add to its existing pool of candidates.
It is useful to have a stable of pre-qualified consultants who can move quickly. Again, time is money.
EDOs should seek to review qualifications annually.
Request for Proposal (RFP): - (answer)The most rigorous selection process is the RFP. It is recommended
that the issuing agency distribute the RFP to as many groups or entities as possible. The consultant must
submit a full proposal to be considered. The RFP typically is advertised, mailed to a list of possible
consultants, and posted on the website.
The RFP clearly explains the project specifications, discussed previously, that the agency prepares before
retaining a consultant.
In addition, there should be a description of the project and services required. The description of
required services is very important because consultants will base their response to the proposal on that
description.
, CECD POSSIBLE ESSAY MATERIAL:REAL,FINANCE,BRE EXAM WITH
CORRECT ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST ALREADY GRADED A+
It should be clearly written and consistent with other parts of the RFP. In describing the proposed tasks,
the RFP should provide enough detail, including the number of required meetings with agency officials,
for the consultant to make realistic cost estimates.
The RFP not only conveys information but also acts as a marketing tool. A good RFP should be well
organized and written so that it encourages the consultant to invest time and money into a thoughtful
response. The RFP should include
instructions for submission. Such instructions should include the time, date, and location of submission,
as well as submission requirements such as a cost proposal, and an outline of what should be provided in
the consultant proposal.
Agencies may wish to include budget information or set a budget. Alternatively, they may ask the
consultant to propose a budget and make the consultant's cost one of the selection criteria. By excluding
the budget, the agency encourages the consultant to price their response competitively. However, it is
difficult to compare responses with wide variations in budget. Therefore, agencies may wish to provide a
budget range or have a target budget
Selection criteria include the consultant's: - (answer)• Understanding of the project;
• Approach to the project;
• Experience with similar assignments;
• Staff qualifications for the project;
• Clarity of proposal;
• References and contacts from prior project engagements.
The RFP should require the following from the consultant: - (answer)• Listing of the tasks the consultant
is assuming;
• Work plan;
• Specific responsibilities of consultant's staff;
• Detailed timeline and list of deliverables;
