Search

Financial Feasibility Analysis ASSOCIATES NC
AFFORDABILITY

Maximum Affordable Rents (Utilities Included)

OTT am ANZ el =) 40% AMI ley NIE 60% AMI Lob ANE 70% AMI 10 ONE 100% AMI | 110% AMI | 120% AMI | 140% AMI ie

Efficiency $711 $889 $1,067 $1,156 $1,245 $1,422 $1,778 $1,956 $2,134 $2,489 $1,779
41BR $829 $1,036 $1,243 $1,347 $1,450 $1,658 $2,072 $2,279 $2,486 $2,901 $1,860
2BR $998 $1,248 $1,498 $1,622 $1,747 $1,997 $2,496 $2,746 $2,995 $3,494 $2,316
3BR $1,154 $1,443 $1,732 $1,876 $2,020 $2,309 $2,886 $3,175 $3,463 $4,040 $2,688

Maximum Affordable Purchase Price

Unit Type 40% AMI ley NIE 60% AMI Lob ANE 70% AMI 10 ONE 100% AMI | 110% AMI | 120% AMI | 140% AMI ie

$94,560 $118,200 $141,840 $153,660 $165,480 $189,180 $236,400 $236,400 $262,800 $330,960 $300,000

2BR $126,080 $157,600 $189,120 $204,880 $220,640 $252,240 $315,200 $315,200 $350,400 $441,280 $350,000

3BR $157,600 $197,000 $236,400 $256,100 $275,800 $315,300 $394,000 $394,000 $438,000 $551,600 $550,000

Financial Feasibility Analysis
FINDINGS

ASSOCIATES INC

evelopments target middle income households
(60% AMI to 90% AMI) created unrealistic return expectations.

5

Downtown area market fundamentals are through use of certain incentives... if the City
different than other growth areas. returns to adhering to existing regulations.

Financial Feasibility Analysis
STRATEGIES

ASSOCIATES INC

TARGET THE ‘MISSING MIDDLE’ IN CURRENT DEVELOPMENT TRENDS

¢ Recent development has focused on 100% affordable housing and
100% market rate housing

* No development has targeted the ‘missing middle’ incomes

¢ The analysis reveals that delivering to this group is financially
challenging and there are no Federal programs to help

¢ Targeting the IZ policy to this cohort creates a stronger continuum

¢ 80% of AMI is recommended target
¢ $55,950 for 1-person HH
¢ $92,700 for 6+ person HH

VARY INCLUSIONARY % BASED ON THE SIZE OF THE DEVELOPMENT

¢ The analysis shows that larger developments have greater capacity to
accommodate inclusionary units

¢ Smaller projects experience greater financial impact due to having fewer
market rate units to compensate for the income-controlled units

¢ Recommended thresholds
¢ Under 10 units = 0% inclusionary
* 10-25 units = 10% inclusionary
¢ 26-100 units = 15% inclusionary
* 101+ units = 20% inclusionary

Financial Feasibility Analysis
STRATEGIES

CREATE SEPARATE THRESHOLDS FOR DOWNTOWN

¢ City priority (from previous plan) is to increase diversity Downtown since
it already has higher share of affordability than other parts of Nashua

¢ Cost to develop housing is higher in Downtown, particularly due to the
need for structured (podium) parking

¢ Th city should consider a lower inclusionary requirement for Downtown
into the near future to continue to promote development while balancing
price diversity citywide

¢ Recommend a lower % requirement Downtown

USE BONUS DENSITY TO MITIGATE IMPACTS ON FINANCIAL FEASIBILITY

¢ The analysis shows that the financial impacts of an inclusionary zoning
policy can be mitigated through a bonus density program
¢ Effectively, the city would offer additional units to the developer in
exchange for the inclusionary unit requirement
¢ The analysis revealed the following ratios create a financially neutral
impact
* 1:1 bonus density ratio outside Downtown
* 2.5:1 bonus density ratio in Downtown

¢ This would only work if current practices of allowing maximum density
without inclusionary units are halted

ASSOCIATES INC

Financial Feasibility Analysis
STRATEGIES

CONSIDER PAYMENT IN LIEU OF UNITS IN CERTAIN CIRCUMSTANCES

¢ A payment in lieu of units allows for the city to elect to receive a cash
payment to the Housing Trust fund instead of having the units delivered
Payment in lieu strategies oftentimes are used to avoid affordable units
being concentrated in select areas

The approach also is common to alleviate an additional financial burden
when a ‘partial unit’ is calculated

¢ 75-unit development with a 10% IZ requirement = 7.5 units

¢ A payment in lieu allows for a cash equivalent to be paid for the 0.5 unit
RKG recommends Nashua use payment for partial unit calculations

¢ Current value differential between 80% AMI and market rate about $36,000
City also can consider special exception in mitigating situations

¢ This would be exclusive decision of the city

¢ Situations such as avoiding concentrations or to capitalize the Housing Trust

fund for an impending project

ASSOCIATES INC

UNIT VALUE DIFFERENTIAL
FROM MARKET RATE UNITS

MARKET RATE

-$35.940

80
%
AMI

p= -$62,370

p= -$115,230

50
%
AMI

AGENDA MEETING OF THE BOARD OF ALDERMEN SEPTEMBER 28, 2021

7:30 PM Aldermanic Chamber and by Zoom

Join Zoom Meeting: https://us02web.zoom.us/j/87809222661? pwd=UnBPS24 1loW9id VIXb20vR2pzT29XUT09
Meeting ID: 878 0922 2661 Passcode: 209661

Join by phone: 1-929-205-6099
Meeting ID: 878 0922 2661 Passcode: 209661

If for some reason you have problems with connectivity, please contact us at (603) 589-3329 and someone will assist you. The
public may also view the meeting via Channel 16.

1. PRESIDENT LORI WILSHIRE CALLS ASSEMBLY TO ORDER

PRAYER OFFERED BY CITY CLERK SUSAN K. LOVERING
PLEDGE TO THE FLAG LED BY ALDERMAN-AT-LARGE BRANDON MICHAEL LAWS
ROLL CALL

REMARKS BY THE MAYOR

RESPONSE TO REMARKS OF THE MAYOR

RECOGNITIONS

o NO oO Fk WN

PRESENTATION
e =Inclusionary Zoning Financial Feasibility Study by RKG Associates

9. READING OF MINUTES OF PREVIOUS MEETINGS

Special Board of AIGErMe N...... 0... ccc cece cece ee cee eee eee cee n ee nee ene ene ete een EE EEE EEE eae eta EEE EEE 09/08/2021
Board of Aldermen. ........ 02.2.2... ccc eee cee eee cee cee cece e eee ee eee cee eae ceases eee aeesaeaeeceeaeeeeessnises 09/14/2021
Special Board of AIGErMen............ cc ccc ccc ee ee cee cence eee ee eee een nee nee ene ene ete bend eE GEE ene eta aes 09/16/2021

10. COMMUNICATIONS REQUIRING ONLY PROCEDURAL ACTIONS AND WRITTEN REPORTS
FROM LIAISONS

From: Lori Wilshire, President of Board of Aldermen
Re: Calling a Special Board of Aldermen meeting on Monday, November 15, 2021 at 7:00 p.m. Relative to an
Assessing Update on the Revaluation

From: Lori Wilshire, President of Board of Aldermen
Re: Calling a Special Board of Aldermen meeting on Tuesday, December 14, 2021 at 7:00 p.m. Relative to a
Presentation from the Beautification Committee

From: Matthew Sullivan, Planning Manager

Re: Referral from Board of Aldermen on Proposed R-21-169, relative to the authorization of the City of
Nashua to enter an Agreement and Consent to Joint Use with Liberty Utilities and making a supplemental
appropriation of $38,394

From: Matthew Sullivan, Planning Manager
Re: Referral from Board of Aldermen on Proposed R-21-170, Relative to the Approval of the Imagine Nashua
2021 Master Plan

From: Lisa M. Fauteux, Director of Public Works
Re: Referrals from Board of Aldermen — R-21-165, R-21-166 and R-21-169

9(a). PERIOD FOR PUBLIC COMMENT RELATIVE TO ITEMS EXPECTED TO BE ACTED UPON THIS EVENING

9(b). COMMUNICATIONS REQUIRING FINAL APPROVAL

From: Mayor Jim Donchess

Re: Multi Year Interpreting Services Contract in the amount not to exceed $3,500 funded from accounts 55699

Other Contracted Services (Police Department)

From: Mayor Jim Donchess

Re: Engineering Consulting in the amount not to exceed $2,600,000 funded from accounts SFR Loan
(Engineering Department)

From: Mayor Jim Donchess

Re: Postage Machine Lease in the amount not to exceed $6,000.60 funded from accounts 55607
Postage & Delivery (Library)

PETITIONS

NOMINATIONS, APPOINTMENTS AND ELECTIONS

Appointments by the Mayor

11. | REPORTS OF COMMITTEE

Personnel/Administrative Affairs Committee... .....0.00.00000 cece eee e eee eee 09/07/2021
Human Affairs Committee... 0.0.0... cee cee cee ee eee e eee ee cae eesseeeeevaeeea vanes 09/13/2021
Finance Committee... 00.0.0... cee cece eee see eee cesses dee aee sae eeaeee eae aeaeeegs 09/15/2021

12. CONFIRMATION OF MAYOR’S APPOINTMENTS

UNFINISHED BUSINESS — RESOLUTIONS

R-21-143
Endorsers: Mayor Jim Donchess
Alderman Thomas Lopez
Alderman-at-Large Brandon Michael Laws
Alderwoman-at-Large Shoshanna Kelly
Alderman Patricia Klee
Alderman Jan Schmidt

PROPOSING AN AMENDMENT TO THE CITY CHARTER RELATIVE TO THE MANNER OF APPOINTMENTS TO THE

NASHUA BOARD OF POLICE COMMISSIONERS
e Tabled at Board of Aldermen August 10, 2021 meeting

R-21-163
Endorsers: Mayor Jim Donchess
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Patricia Klee
Alderman Richard A. Dowd
Alderman-at-Large David C. Tencza
Alderman Linda Harriott-Gathright
Alderman June M. Caron
Alderman Jan Schmidt
Alderman-at-Large Lori Wilshire
ESTABLISHING THE USE OF FUND BALANCE FOR TAX RATE
e Budget Review Committee — anticipated recommendation for final passage

R-21-164
Endorsers: Mayor Jim Donchess

Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Patricia Klee
Alderman Richard A. Dowd
Alderman Skip Cleaver
Alderman Linda Harriott-Gathright

RELATIVE TO THE TRANSFER OF $30,000 FROM ACCOUNT 70100 “GENERAL CONTINGENCY” TO

ACCOUNTING CLASSIFICATION 51 “SALARIES & WAGES” IN ADMINISTRATIVE SERVICES ($25,000) AND

2

signature to this Agreement, and agrees to be bound by a document executed
in such a manner. The paries acknowledge that any document generated by
the partes with respect fo this Agreement, including this Agreement may be
imaged and stored electronically and such imaged documents may be
intoduced as evidence in any proceeding as if such were original business
records and neither party shall contest their admissibility as evidence in any
proceeding. Except as otherwise explicitly provided in this Agreement, no
amendment (including in form of a purchase order you send us) fo this
Agreement will be valid or given any effect unless signed by beth of us.
Applicable provisions of this Agreement will continue in effect afer termination
or expiration of this Agreement to the extent necessary, including those for
billing adjustments and payments, indemnification, limitations of liability, and
dispute resolufon, This Agreement is a “forward contract’ and we are a
“forward contract merchant' under the U.S. Bankruptcy Code, as amended.
Furher, we are not providing advice regarding "commodity interests",
including fulures contracts and commodity options or any other matter, which
would causé us © be a commodity trading advisor under the U.S. Commadity
Exchange Act, as amended.

FOR INTERNAL USE ONLY

©2016 Constellation Energy Resources, LLC Allrights reserved.
Errors and omissions excepted, Std. Short Form_v.2010 Rev Mar-01-2018 ()
Sales Rep: Graig Brazell 117636.46911.0 Printed: 9/15/2016

Page - 6 - of 12

City of Nashua, Public Works Division

To: Board of Public Works Meeting Date: May 25, 2022

From: Jon Ibarra, Superintendent
Street Department

Re: 2020 Pavement Markings Program
Change Order No. 2

A. Motion: To approve Change Order No. 2 to the 2020 Pavement Markings Contract with
K5 Corporation of Rockland, MA in the amount of $162,000. Funding for this
contract is through Department 161: Streets; Fund: General; Account
Classification: 54 Other Services.

Attachment: Change Order No. 2

Discussion: K5 Corporation formerly known as Highway Safety was awarded the Striping
Contract with the City of Nashua when it went to Bid in June of 2020. K5 has
agreed to hold their pricing through June 30, 2022. K5 continues to provide
prompt professional service to the City of Nashua.

This Change Order No. 2, in the amount of $162,000, is to add additional
quantities, such as bike routes and lanes striping to K5’s current contract.

ECONOMIC DEVELOPMENT ($5,000) FOR THE PURPOSE OF FUNDING SALARIES
e Budget Review Committee — anticipated recommendation for final passage

R-21-168
Endorsers: Mayor Jim Donchess

Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Patricia Klee
Alderman Richard A. Dowd
Alderman Jan Schmidt
Alderman Linda Harriott-Gathright
Alderman Skip Cleaver
Alderman-at-Large Lori Wilshire

ESTABLISHING AN OPIOID ABATEMENT EXPENDABLE TRUST FUND FUNDED BY APPROPRIATIONS AND

MAKING A SUPPLEMENTAL APPROPRIATION OF $27,223.40 INTO THE EXPENDABLE TRUST FUND

e Budget Review Committee — anticipated recommendation for final passage

R-21-169
Endorsers: Alderman Patricia Klee
Alderman-at-Large Michael B. O’ Brien, Sr.
Alderman-at-Large Ben Clemons
Alderman Skip Cleaver
AUTHORIZING THE CITY OF NASHUA TO ENTER INTO AN AGREEMENT AND CONSENT TO JOINT USE WITH
LIBERTY UTILITIES AND MAKING A SUPPLEMENTAL APPROPRIATION OF $38,394
e Budget Review Committee — anticipated recommendation for final passage
e Planning Board with favorable recommendation
e Board of Public Works with positive recommendation

UNFINISHED BUSINESS —- ORDINANCES
NEW BUSINESS —- RESOLUTIONS
R-21-171
Endorser: Mayor Jim Donchess
ISSUING PRECEPTS TO THE SELECTMEN OF THE CITY WARDS FOR THE MUNICIPAL GENERAL ELECTION ON
NOVEMBER 2, 2021
R-21-172
Endorser: Mayor Jim Donchess
AUTHORIZING THE MAYOR TO ENTER INTO A SECOND AMENDMENT TO CONCESSION AGREEMENT WITH
GRANITE DIAMOND, LLC
NEW BUSINESS —- ORDINANCES
O-21-071
Endorsers: Alderman Patricia Klee
Alderman Thomas Lopez
REMOVING THE FINE LIMITATION ON ANIMAL ORDINANCE VIOLATIONS RELATING TO DOGS
PERIOD FOR GENERAL PUBLIC COMMENT
REMARKS BY THE MEMBERS OF THE BOARD OF ALDERMEN

Committee announcements:

ADJOURNMENT