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e N.H. Housing and Finance Authority programs

e NHDOT Enhancement Grants

e TCSP Grants from the Federal Highway Authority

e New Hampshire Business Finance Authority programs

A key component for the project funding is the use of the accumulated TIF Funds. All of the added-value
tax increments shall be set aside and placed into the dedicated TIF Account fund.

It is the overall goal of the Board of Aldermen to pay for projects [either entirely or partially] through the
use of the TIF Account Fund. All of the TIFFunds shall be directed towards the payment for specific TIF
projects or the retirement of the outstanding bonds and notes issued for the improvements and
activities approved through this Plan. The baseline values used to determine tax increments will be as of
April 1, 2020. Enclosed in Appendix F are the property cards for the subject properties included in the
TIF District.

For the purposes of determining the taxincrements, the market based appreciation in value of any
property shall be considered as new values to be captured for the dedicated TIF fund.

If there are available TIF Funds in excess of that which is necessary to fund the outstanding financial
obligations for approved projects ina given year then the excess amount shall: 1) be used to make
additional principal payments on bonds issued in conjunction with approved projects; 2) With the
consent of the Board of Aldermen, be applied to a newly approved project within the TIF District; and 3)
used for O&M as necessary.

Pursuant to RSA 162-K, the City of Nashua may issue bonds or other appropriate debt instruments to
pay for the proposed work and improvements approved under this Plan, and any future approved
modification.

As noted elsewhere in this Plan, the projects carried out under this Plan need to be fluid so the City can
react to changing needs and circumstancesin order to effectively move the goals and objectives
forward. The Board of Aldermen, through a public hearing and Plan modification process, must approve
all projects and the expenditures of all funds.

The TIF District and RSA 79-E

The Nashua Board of Aldermen voted in 2013 to adopt the provisions of RSA 79-E, the Community
Revitalization Tax Relief Incentive program. This program provides a tax incentive for the rehabilitation
of buildings in the City's core downtown area, which includes the area within the TIF District. Projects
granted tax relief under RSA 79-E pay property taxes, for a determined period of time based on the pre-
rehabilitation values.

Recognizing that there is a relationship between the implementation of a TIF Plan or project, and the
collection of taxes that might occur under a property subject to tax relief under 79- E, the NH Legislature
included the following language at Paragraph 79-E:4:

“VI. Municipalities shall have no obligation to grant an application for tax relief or properties
located within Tax Increment finance Districts when the governing body determines, inits sole
discretion, that the granting of tax relief will impede, reduce, or negatively affect:

(a) The development program or financing plans for such tax increment
finance districts; or

(b) The ability to satisfy or expedite repayment of debt service obligations
incurred for a tax increment financing district; or

(c) The ability to satisfy program administration, operating, or maintenance
expenses within a tax increment financing district. "

The Board of Aldermen will provide a public hearing for any application for tax relief under 79-E, and
each application will be evaluated on its own merits. The Board does recognize that providing 79-E tax
relief to a specific property may have an impact on the ability of the City to accrue the necessary TIF
funds for the realization of projects that will benefit the City as a whole, but also may directly benefit
that specific property. The Board of Aldermen will take the above 79-E language into consideration
when making a decision on any individual 79-E application(s).

Development Agreements

The City acknowledges that the creation of public-private partnerships to further the goals and
objectives of the TIF District and the Plan as outlined involves some level of risk on the part of both
parties.

At the same time, the City recognizes that opportunities for risk with public funds are not in the best
interest of the citizens and taxpayers of Nashua. It is not the intent of the Board of Aldermen to vote to
authorize the issuance of any bonds or other financial obligation notes without the execution and
recording of the appropriate Development Agreementsin order to protect the interests of the City and
its residents.

As part of the proposal for a private sector spurred project, the Board of Aldermen shall be provided
with information on the project costs, the funding plan, and the Development Agreement. The exact
language of a Development Agreement will depend on the complexity of the project. The Board of
Aldermen may require the developer(s) to execute a clearly enforceable Agreement which will require
the developer(s) to pay any deficiency between the City's actual annual cost for bond debt service and
incrementaltax revenues generatedin, or available to, the District. The Board of Aldermen shall have
final approval of the language of any Agreement negotiated by the Administrator. All Agreements shall
be executed and recorded in the Hillsborough County Registry of Deeds.

Should the City desire to support public improvement within the general project area using the captured
incremental tax revenues within the district than in this case, a Development Agreement will not be
required.

Impacts on Other Taxing Jurisdictions

Property taxes applied to incremental assessed value in the TIF District will include the municipal, school
[local and state], and county taxes currently collected by the City. The Board of Aldermen has not yet
adopted the 2020- tax rates; the current 2019 applicable tax rates areas follows:

Municipal 58.68
County 59.80

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Education Local 52.13
Education State $1.15
Total | $21.76

The estimated impact of tax increment financing on the assessed values of all other taxing jurisdictions
within the City of Nashua is negligible, since the proposed improvements are designed to encourage
commercial investment and lessen the residential tax burden. Thus, these activities will contribute toa
long-term increase in the non-residential tax base at a faster rate than would otherwise be achieved.

Over the next five years there is a potential aggregate figure approximately $500,000 of new tax dollars
on the horizon.

Plan Amendments

Pursuant to RSA 162-K:9, this plan may be amended by a vote of Board of Aldermen in conformance
with all applicable time frames and notice requirements. As discussed previously, each specific TIF
project will be brought forward to the Board of Aldermen for review and approval, thus there will be
future amendments to this TIP Plan.

Duration of Program

The TIF District will exist until all improvements or projects approved bythe Board of Aldermen
have been completed, and all debt issued and borrowing initiated to fund the projects is retired.

The Board of Aldermen will consider the recommendations by the Administrator regarding the proposed
expiration of the TIF Plan and District along with amendments. The Board of Aldermen reserves the
right to evaluate the TIF Plan every year following its adoption, and make any necessary modifications to
the Plan to ensure that all goals and objectives are being met.

Upon full repayment of any outstanding bonds, all TIF Account Funds maybe available for all District
purposes, as outlined in, and approved by the Board of Aldermen as part of any modification tothis
Plan. The Annual Report prepared by the Administrator may recommend that a certain percentage of
the tax increments may be returned to the City for general fund purposes, and Board of Aldermen
approval for that allotment shall not be subject to a formal modification and public hearing process.

Apportionment of Captured Assessed Value

Pursuant to RSA 162-K:10 (a) this plan designates up to 100% of the captured assessed value will be
dedicated for retirement of bonds and notes with a de-minimis portion going toward operations or
further development of the tax increment financing district. This plan allows for the project to outline
specifically how the TIF funds are used when presented for approval.

TIF District Administration

The City Economic Development Director shall be the Administrator of the District and act in with RSA
162-K:13, which prescribe the following duties and powers granted tothe City Economic Development
Director and it is generallyunderstood the Administrator shall have the following powers:

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1) Negotiate for the acquisition of real property or easements, and sign options and | or purchase
and sales agreements to acquire said property or easements subject to final approval by the Board
of Aldermen;

2) Enter into contracts for the construction of any of the facilities included in the development
program

3) Negotiate and sign, upon the approval of the Board of Aldermen, any contracts relative to the design,
engineering, construction or operations of any phase or component of the activities proposed under
this Plan;

4) Apply for, and accept and execute, upon the approval of the Board of Aldermen, grants from any
private or public organization or corporation, or from any state or federal agency for any work
associated with this Plan;

5) Negotiate any Development Agreements and present the Agreements to the Board of Aldermen for
final approval;

6) Certify to the Board of Aldermen, for acquisition through eminent domain, property that cannot be
acquired by negotiation, but is required for implementation of the Plan; and

7) Certify to the Board of Aldermen the amount of funds, if any, which must be raised throughthe sale
of bonds to finance the activities associated with this Plan.

8) Engagein any other administrative or ad ministerial duties necessary for implementation of the
development plan and programas outlined.

The Board of Aldermen may grant through an affirmative vote of the Board of Aldermen, additional
powers, as deemed necessary and appropriate, in order to implement the goals, purpose, work and
improvements outlined in this Plan or any future amendment.

Advisory Board

In accordance with 162-K: 14, the Board of Aldermen through this Development Program and Financing
Plan shall appoint the following Advisory Board Members: Managing Partner of Lansing Melbourne
Group or his/her designee (Peter Flotz), Chair of Performing Arts Center Steering Committee (Rich
Lannan), the Director of Economic Development (Tim Cummings), the Director of Community
Development (Sarah Marchant) and the Treasurer (David Fredette) all for a one year term.

After the initial one year term members of the Advisory board shall be appointed by the Mayor and
confirmed by the Board of Aldermen, for one year terms or until their successors are qualified, to advise
the Mayor and district administrator on planning, construction and implementation of the development
program and on the maintenance and operation of the district after the program has been completed.

The district administrator shall consult withthe advisory board at least forty-five (45) days before
implementation of a phase of the development program and the advisory board may appealto the
Board of Aldermen concerning a district administrator decision no later than thirty (30) days before a
phase is to be implemented. Decisions of the District Administrator shall not be overturned except for
abuse of discretion.

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AnnualReport

Pursuant to RSA 162-K:11, the City, by and through the Administrator of the District, in consultation with
the Advisory Board, shall prepare an annual report containing the following:

° A Narrative Report on the status of theimplementation of the Plan and a summary of
the work that has been completed within the previous year;

° The amount and source of revenue of the District;

° The amount and purpose of expenditures;

° The amount of principal and interest on any outstanding bonded indebtedness;

° The original assessed value of the District;

° The captured assessed value retained by the District;

° The tax increments received; and

° Any additional information necessary todemonstrate compliance with the TIF Plan

This is understood through an affirmative vote by the Board of Aldermen to Adopt the provisions of
Chapter 162-K on November 24, 1998

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Appendix A

District Boundary

a

120

TIF DISTRICT

240

Feet
480

CITY OF NASHUA
OFFICE OF CORPORATION COUNSEL

MEMORANDUM
TO: Board of Aldermen
FROM: _ Stephen M. Bennett, Esq., Corporation Counsel
DATE: _ February 1, 2016

RE: Nashua Collegiate Baseball, Inc.

Recently this board approved a 90 day extension, from January 1, 2016 to March
31, 2016, of the Concession Agreement between the City of Nashua and Nashua
Collegiate Baseball. The parties requested this extension due to ongoing negotiation for
the sale for the team. Those negotiations have not proceeded as quickly as anticipated
and the current Franchisor anticipates operating the team into the 2016 baseball season.
In order to conduct its baseball operations for the 2016 baseball season, the Franchisor
has requested to exercise its option to extend the Agreement. Other than the extension of

the Agreement through December 31, 2016, all other terms shall remain the same.

229 Main Street — P. O. Box 2019 / Nashua, NH 03061-2019 / Telephone (603) 589-3250 / FAX (603) 589-3259

Appendix B

2003 Downtown Master Plan

Nashua/New Hampshire

Nashua Downtown Master Plan

Preparedby URBAN DESIGN ASSOCIATES

Prepared for
City of Nashua, New Hampshire

May 2003