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IDA hires financial advisor, consultant

By JOYANNA LOVE/ Managing Editor

The Chilton County Industrial Development Authority has contracted with Rice Advisory as a financial advisor for the Alabama Farm Center and future commercial development.

Some of the services the financial advisors of the company will provide include financial analysis with multiple scenarios and negotiate with entities and bond underwriters as necessary to get the best price possible.

According to the contract, the cost for these services connected to a specific project are based on the value of the project.

“For amounts up $10 million: $2 per $1,000 with a minimum fee of $20,000; For amounts over $10 million up to $15 million: $1.90 per $1,000 for the amount above $10 million, plus amount due pursuant,” according to the contract.

There are also different costs for value over $15 million and over $20 million.

An hourly rate of $150 per hour would be charged for “general financial advice” not tied to a specific project.

This contract was approved during a special called meeting on April 20.

Also during the meeting, a contract for $43,500 was signed with Convention Sports and Leisure as a consultant for a market study related to the Farm Center, especially the proposed exhibition hall. Their report is expected in a couple of weeks.

Whitney Barlow, Industrial Development Authority executive director, said part of the IDA’s economic development assistance efforts is hiring and paying for consultants to help the process and “all the groundwork to get you to a certain point, then at that time whatever governmental entity is involved in that process — for the Farm Center it would be the county, we advise them through the people that we hire based on their requests.”

The IDA also serves in a liaison role among the groups that are involved in the project.