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City of Nashua, New Hampshire
Uncompleted Project Status Report

FY 2016
Division: Other Public Safety
Department: Citywide Communication

Per NRO 5-(34-c, the Financial Services Division shall report to the Board of Aldermen the status of all uncompleted projects.

"Project type" as defined by the ordinance is any one of the following:

(1) An endeavor requiring expenditure in excess of $50,000

(2) The purchase, construction, replacement or rehabilitation of any physical facility, including but not limited to, roads, buildings,
bridges, and sewerage, with an anticipated life in excess of ten (10) years

(3) The acquisition of tangible personal property with an anticipated life in excess of ten (10) years

(4) The acquisition of land or any interest in land

(5) Surveys or studies relative to the aforementioned categories

(6) Contractual services provided to the city

Project

. . 7 . Accounting Unit Activity # Account . Budget Funds Percent Funding Required
P tN Brief D. tion of Project : * Si f Fund F
roject Name Type mel Description of Fraye ‘Account (if applicable) Name ource of Sunding Amount unds Expended Encumbered Complete | to Complete Project
Radio Communication (3) [Replacement and upgrade to the radio system 57.5050 2008 Cap Proj - Radio General Obligation Bonds 7,600,000 6,259,712 548,104 82.36% 792,184
Upgrade infrastructure to meet the future radio ‘Communication Upgrade

communication standards set forth by the
Federal Communications Commission

Page 7

Special Bd. of Aldermen — 11/26/2018 Page 11

builders there is hazardous material. Also, no escalation cost, they figured starting date of March 2018. So
even those costs have question marks on them.

Now comes along the sole bidder, Spectacle Management who is going to operate this thing. What is it that
they say? Forget the 500 seating, 550 seating, forget the 500 tables, it is not a correct venue but Duncan
Webb estimated $1 million revenue a year. Spectacle Management says, read the proposal. You are going to
have 750 seat theatre to make sense in this region to attract the venues you want to get people to come in to a
theatre, 750 to provide revenue so you can pay that particular performance. 750 they said and $2 million
dollars a year. And if you do 750 theatre and $2 million dollars a year | will not need your $4 million dollars
from your charitable funding, you keep that, because you will make enough money and break even. All they
wanted is a $1.00 lease a year. But 750 theatre, and $2 million dollar revenue. And that by the way has been
backed up by some, several of the A&E vendors that made presentations. If you think of the Palace Theatre, |
forgot how big the city, but far greater than 750.

So where are you? Well if you have a 750 seat theatre you need a balcony in a foot print of the Alec Shoe
Store and the building behind it, you need a balcony. And therein lies the suggestions to place the
performance theatre from the ground up because think about it. You need to have very long stressors about
100 feet stressors, you have to have columns to support these stressors. And if you put them in the basement,
they won’t bother anybody. If you put these columns in the first floor, you take away a lot of so-called retail
space, it makes no sense. The only thing that makes sense is to build this thing from the ground, first floor up.
There are nooks and crannies and spaces that you build this up, very nice for retail, places where people can
meet before the performance, meet after the performance, have little performances, all that makes sense, but it
takes a design. So better to operate this, 750 seats and therein lies an issue about the cost. | don’t think the
cost is anywhere near what you need.

| think if you can get a resolution and it is acceptable to make changes to a bid voter’s voted on then make it a
$20 million resolution. Add the money that Fennessy proposed $16.5 million for construction, $11.5 and $6.5
is about $5 million, make this a $20 million resolution, then you build the system you want the theatre, you the
stages, make a theatre you can be proud of, not some rinky dink operation. Court Street is an example of a
failure. | was here in 1993 when we voted Court Street, and Court Street as a performance center has been a
failure. If you are going to go this way go the correct way. | am the guy known to not spend money, not spend
money foolishly. If you are going to a resolution make it $20 million.

One more thing, this $6.5 million dollar charitable money, | was here when the consultant made the
presentation. These New Market Tax Credits, she said and | am quoting her almost, are highly competitive and
they are nationwide not New Hampshire wide, nationwide. Highly competitive no guarantees, do not get
caught in that trap. | know, like I’ve said, I’ve spent a lot of time fund raising, it is very difficult. That’s my
recommendation and if you don’t do it, | can’t support the current resolution. Thank you.

Mayor Donchess

Would you mind if | respond to that because | largely agree with it. | think that except for the cost estimates,
first of all | agree we should do it right, it might take 750 seats, | think Tim can show the cost estimates, but in
reality, you have been to all the architectural interviews, you’ve seen how creative they are. And | am going to
speak for you and say you’ve been pretty impressed by the creativity and the thought that has gone into this
project but some of these very capable architects. In the end, we are unlikely to build exactly what Duncan
Webb proposed, it was a concept, he said the second floor, | think most likely it'll go to the first floor, which will
not require the raising of the roof as much. You heard the Icon Presentation, they put forward a very creative
way of bringing it to the first floor and reversing things. All of the architects have said that they could bring it in
on cost. They’ve all said that they thought they could do it. | think we should leave it at $15 million, but if we
are successful in the New Market Tax Credit application, which our expert is very confident we can get, if we
ever had to go above $15 million, we have $4 million dollars coming into the project. So if we had to go a little
over in order to accomplish the goals you have outlined, that would be an available source.

Special Bd. of Aldermen — 11/26/2018 Page 12

We still think we can bring it in based upon what the architects are saying at $15.5 but you know there is a $4
million dollar cushion from the New Market Tax Credit. But what | would ask Fred is that you stay involved in
this and that you continue to come to these meetings and maybe participate a little more than you have and |
think that you’ve seen how many people are involved in this whole thing. | think if we work together in terms of
trying to come up with a quality project, we can do that and one that the City will be proud of.

Mr. Teeboom | appreciate that, but | will say that as a member of the public | can’t speak at these meetings.

Mayor Donchess

Well maybe we will open it up if you keep your comments a little shorter it would help.

Mr. Cummings

Thank you Mr. Chairman, | do want to just take a quick opportunity to address a couple comments that were
just made to make sure the record is accurate and reflective especially of which is because there was
gentleman who was referenced who could not be here to actually correct the record for himself. So President
McCarthy did not unilaterally do anything. There was a small working group assembled of various community
stakeholders, folks in the Arts Community, folks from the City, folks from the Downtown and they got together
over the course of the feasibility study on occasions, | would say once a quarter. It was through those
meetings that the idea came about to reduce the scope of the concept plan from what is articulated in the
Fennessy Consulting Report as option 1, 2 and option 1A and option 1B.

At that point it was all through our architect and Fennessy consulting who went out and had those cost
estimates independently verified because there was a question raised during the working group meeting that
there was these third party consultants who were not from the local market and they really wanted to make
sure that we had accurate labor rates and what not for the cost estimates as provided. So those cost
estimates were independently verified by a local group and all that data is available and up on the City’s
website and | thought | had made that clear on occasion. So | just wanted to make sure that is accurately
reflected for the record.

The other point | wanted to make is because this was reported in the news recently this summer inaccurately |
want to make sure folks know that there is money raised, so it is not like we don’t have any money raised for
the Performing Arts Center. | don’t know what that number is, there is a separate effort going on and it is being
led by our professional fund raising consultant Capital Committee and City Arts Nashua. City Arts Nashua is
currently under the care and custody of those funds. So there is money available but we are focusing on the
big dollar donations right now and then we will be transitioning into a second and then a third phase. The third
phase is more of a public campaign that folks have all been referencing. So | just want to make sure that is
accurate.

Mr. Teeboom | just want to say at the Public Hearing, | talked to Seamus Fennessy personally and he is ticked
off because he was never consulted on the so-called deduction of $16.4 million dollars. | should also say |
have never seen anything whatever the group is that Tim mentioned. The only I’ve seen are the spread sheets
of Fennessy, the other thing are the spread sheets of Harvey, $15 million and the spread sheets by Harvey to
the $10.5 million. If Mr. Cummings has back up the $11.5 million then he should produce that. I’ve asked him
that several times. I’ve heard him say in the public meeting that he has various sources, he is always being
kind of fuzzy where his $5 million came from, I’ve seen his memo where he advised the aldermen about 11.5
I’ve never seen the details. If he has them, | request that you produce that information. Thank you.

Mr. Cummings

I’ve provided it under multiple occasions and in fact | Know Mr. Teeboom has it.

Special Bd. of Aldermen — 11/26/2018 Page 13
Alderman Dowd

Is there anyone else that would be like to be heard in opposition to this? Please come up to mic and state your
name and address.

Barbara Pressly Hello, my name is Barbara Pressly and | live at 11 Orchard Avenue and | am so pleased to
know that my alderman is going to be the first one with the million dollar donation. My primary concern tonight
is the integrity of our local Board of Aldermen. | have always been | guess naive enough but | think a lot of
people are very naive that when something is placed on the ballot for the citizens to vote, that it is rather
sacred. | am deeply concerned | understand putting something on the ballot by the way is not a frivolous
endeavor, it is really hard to do. | am distressed to learn tonight that the group that was so much in favor of
this, it is pretty clear now that they did not understand the magnitude and the complication of a project like this.

| think so many of you are new members to the Board of Aldermen and | think you have been placed in an
extremely awkward position because you did not vote to put it on the ballot. So you’ve been caught in the
middle; do you live up to what was voted on explicitly and exactly or do you find another way to accomplish
what you want to accomplish? | do believe that the plan, | commend the Board and all of the sub-committees
that have worked on this, | think you have really done a good job to find out what it would take to really have a
quality project like this and | commend the work that has been done.

| certainly like the suggestion of Alderman Jette, I’m trying to think of some way that you can sort of save the
integrity, can the public ever trust again anything that is put on the ballot if you so drastically change the
meaning of it through a resolution. And it clear to me that you have learned a lot, you’ve learned that what you
want to do is probably the best way to accomplish this. | thought the idea of getting the money to get the
design might be a solution for you. Nobody wants to give a lot of money or time to something that they can’t
see and understand. It seems logical to me that maybe some way that you can think about finding a resolution
where you do not violate the public decision and you could still proceed with the next step, which clearly is to
get a design. Think about it, if you come in with a really exciting great design, you could have an enormous
amount of support from everybody. | think that would work, | hope you won’t rush into this. In a way you have
the reputation of local government in your laps, not by your own doing or own solution or suggestion. | hope
you don’t feel the need to rush this through and support it and push it through tonight.

I’d also like to mention that a lot of people don’t know about this and a lot of it has to do with the Holiday
Season but I’ve been really quite surprised that people who watch government and there is no press here
tonight so they don’t even know what you are voting on. Well they go the message, so anyway, pardon me?
(inaudible) Well they are not sitting up in the press box anyway you have a tough decision to make and | am
sorry for those of you that are new that you have been placed in this situation but you have.

| think Alderman Jette has come up with a great idea where you can maybe proceed, get the money, get a
good design and not violate the sacredness of a citizen’s vote. And you would have time to do that, you would
have time to get it on another ballot if you want to change what they voted on, let them vote to make the
change. But think your integrity is at stake. Thank you.

Testimony in Favor- None

Testimony in Opposition

Karen Bell 95 Parnell Place, Nashua, New Hampshire. Just a couple of questions, observations and things
since the past couple people have spoken. The Palace Theatre has 880 seats since after they had the
renovation. It was 1,100 seats they had a renovation now it is 880; I’ve been there it is a great venue. | don’t
Fred if these are all facts but if you have a 550 tier, 500 table and 1,000 standing in this, the first thing, those
are the numbers that Fred was saying, the first thing that comes to mind to me doing the math is over 2,000

Special Bd. of Aldermen — 11/26/2018 Page 14

people at full capacity and Alderman O’Brien you would be the best to know, what is going to be the fire
capacity in this building? Having gone through feasibility study myself many years ago in this community in a
non-profit, during the feasibility study we had hired an architect, it was part of the cost of the feasibility study.
We had architects come in and do a plan and we knew what the plan was right down to the rooms which way
the doors opened and everything else, and here was the number, boom — during the feasibility study. So that
when we sought out donors, and then we went and me with them, we could say this is the land this is on, this
is the cost and here is the amount of animals that this building is going to hold. So they knew right off the bat,
that was part of the feasibility study so in my mind it seems like some things happened backwards or are
happening backwards.

My last kind of question from my first round | am not sure if it was answered or | didn’t pose it as an explicit
question, is the Performing Arts Center already in or does it already have non-profit status? Is it a 501(c)3
currently in the State of New Hampshire so that, god forbid | know we don’t want the $10.00 donors yet, but if
somebody all of a sudden found out they were terminal and had a lot of money and thought | want to have a
tax benefit or make a donation or whatever to the arts, and have a contribution in Nashua to a non-profit entity,
is the Performing Arts Center a non-profit? Is that status already secured? Can anybody answer that question
for me?

Mr. Cummings

Mr. Chairman | can answer that question, so the simple answer is we are working with City Arts Nashua, they
are a fiscal agent, they have the 501(c) charitable tax deduction status. There is an effort underway to receive
certification through the IRS, that is three to six month-ish process and so until that is actually achieved, we
created an avenue with City Arts Nashua so there could be a way of donations being given and tax deductible.

Ms. Bell So City Arts Nashua could in fact accept donations as we speak for the Performing Arts Center and if
people didn’t know that, they know that now so that if they wanted to consider making a contribution, an early
one, even though it is not going to be naming rights or anything else, in any amount to the Performing Arts
Center, they could do so through the City Arts. Good to know.

Alderman Dowd

Also I’ve been involved in the design of numerous schools here in Nashua, we always have the Fire Marshall
involved in reviewing all plans and having to sign off on the design.

Alderwoman Melizzi-Golja

Just to clarify Mr. Teeboom’s comment, he was talking about different options, so it could be 1,000 at one time,
it could be 500 tiered at one time, or it could be table tops because as we have moved through this project, one
of the things that we have looked at is flexibility in use. So do we want movable seats and those sorts of
things. So what he was referencing was three different options, not all of that at one time.

Ms. Bell Different options, not totally combined, ok thank you.

Alderwoman Melizzi-Golja

No, no, because | think all of us would be very afraid of having 2,000 people in there. And | just think that one
of the things that all of us have come to realize, because many of us work both public and non-profit, is that
some of the things we need to do in the public arena happen in a little bit of a different way, because we are
public and how we have to go about writing resolutions and passing resolutions and moving forward. So we
don’t have the flexibility to just say ok we are going to do a design even though that kind of makes sense. At
one point, those of us from the public as well as members of City Government and this Board who were on that
initial committee, we were like oh we have to get money to put a design together, but you can’t put a design

Special Bd. of Aldermen — 11/26/2018 Page 15

together until you’ve put out the bids. And there is just a little bit of a difference in the process working from the
public side. | think all of us have felt that oh | want to do this but oh no | can’t because this is a public process

So | think that there has been a little bit of that that feels very different for many of us who have been involved
on both sides, non-profit as well as public. But no we are not putting 2,000 people in there at one time.

Alderman O’Brien

Having some 35 years expertise in such matters, the State RSA says you can’t build a building that is not
going to be fire safe. It is going to be heavily sprinkled, it is a place of public assembly. Those that do go into
any establishment in our City, you will notice that a Certificate of Occupancy has to be proudly displayed so
that every person can see to make sure that they are not themselves getting themselves into an overcrowded
situation.

The discussion of the movable or floating plans, such as movable tables and seats and everything it sounds
like there will be several certificates of occupancy met with that. The Fire Marshalls will work with that and
come up with that particular amount, because every table and chair takes up a Space, and those are guarded
in exiting the building. So | am quite confident in that, that it will be done appropriately and to our level of
expertise and safety that we in Nashua demand.

Ms. Bell It sounded like a high number when | was doing the math so | was glad you were here and other
members of the Board of Aldermen to answer and thank you so much for your clarification on things. |
appreciate that and | would like to say just as a reader of the Telegraph on a daily basis, that it would be nice if
there were maybe some updates on the funds that have flowed into this project because | think that most
people are in the dark. They were maybe led to believe that there were some initial donors who were stepping
up, they were on deck, they were at the plate with some large funds to donate and | think that people don’t
know, | Know that people don’t know and they would like to be kept a little bit more abreast about what is going
on and even the dollar figure. Because it is people who are considering donating, like to know that there is
something in the pot so thank you again very much.

Dick lannacone , 35 Swart Terrace, there ought to be a group that talk for and against so that is what | would
like to present tonight after listening to the speakers it is very important. First of all for those who think we are
against, our group has probably raised more than $400,000.00 to $500,000.00 for the Performing Arts since
we’ve been in town. We have been very active in supporting the arts. I’m not sure the people who supported
what used to be the Nashua Symphony which is Symphony NH is that for years we looked for support. When |
first came into town | worked with the Symphony and was on their Board, Chairman for part of the time and
during the time we looked for support and could not get the support.

We actually went to the City of Manchester because there was what, the New Hampshire Symphony. Most
people believe if you said the name New Hampshire Symphony that they were the Symphony for the State of
New Hampshire. In very private negotiations a few of us would get together and meet and try and geta
merger of the two organizations, that’s how much trouble we were in. We finally came to the end of the
discussions with New Hampshire Symphony saying we don’t need you. We all know what happened, the
people like Nancy who was the head and Eric who worked for very little in a timeless fashion we survived and
they did not.

| would caution on a couple things here. We have many committees looking for the Performing Arts trust me.
You think the Performing Arts Center we have where the symphony performs is a good place? |’m sorry, even
for a period of time we tried to get some air conditioning in there approved, couldn’t even get the money at first.
It is not an ideal situation. We'd love to have a place in Nashua but | think it’s important what Barbara Pressly
said for the second part. That part is that | don’t have the exact numbers but a vote was taken, how many
votes were actually voted for if they wanted a performing arts center or not, it was very little right, how many
votes? How many total votes?

Special Bd. of Aldermen — 11/26/2018 Page 16

Unidentified Speaker
8,000 or 9,000.

Mr. lannacone And what was the vote count? It’s a simple majority right? What Barbara Pressly said is very
important here. The people want an arts center, we want a performing center. But they voted because they
were told also in all these discussions that this was going to be done with private money. That’s a very
important distinction here. And how we’ve been giving all these great assurances by these professionals,
believe me we’ve doing professionals for a number of years, raising money for churches, raising money for
other things. It is not that easy and they have given us these assurances or guarantees as we’ve heard these
words, boy this is going to be an easy one to do.

| think the people need to and | think Barbara Pressly is correct here, need to know what they asked the City to
do and where we are now. | have been watching all along waiting and asking questions, when is this going to
happen, when is this going to happen and we had nothing planned ahead of time. We are shooting from the
hip again and that has now caused us a problem. | think that is the problem that people have with government
at this point is that you throw something out, they’ve given us a direction and it is tough to do, it’s not easy, you
don’t have an easy job. But it would be so much easier with communication if we said this is what our intent is
going to be, if that is the route we are going to go down. These tax credits, | agree the tax credits, that’s not
private contributions sorry, that’s not at all private contributions.

| think if nothing else we need to go to the people and say here’s what has happened, | mean look at how
many people we have here tonight, it’s not very many people and coming a week after a holiday week, we
need to go to the people and say this is the direction we are going to goin. In simple plain English, explain
what the tax credits are, what they are all about, and the private contributions and what we need to do. And
then if you get that occurrence of the people like Barbara Pressly speaking, then we are on solid ground. It’s
not going to be 3, or 4 years from now or 5 years from now we are still trying to build this arts center that is
downtown. From my understanding, | don’t think this complex can hold the full orchestra, is that correct Tim?

Mr. Cummings

Yes that’s correct.

Mr. lannacone In this facility, it would be nice if we had a nice facility to do that, we can’t do that. Tough
decision, Barbara Pressly said some great comments, people need to know, if you want the center, but we
should know exactly who has the liability and who is going to have the liability. And | will tell you for example
for the Symphony New Hampshire we are trying to raise money to keep things going, it is very, very tough,
believe me. Thank you.

Mr. Cummings

| just have a quick question, it sounded like there was a group being represented in the comments there. |
would like to Know which group it was?

(inaudible dialogue)

Debora McLaughlin 19 Salmon Brook Drive, Nashua, New Hampshire. In hearing all of this tonight, | am
thinking to myself, you know, | am your demographic who would attend these things and pay this ticket price
and enjoy these festivities and looking over the last 10 years | have probably gone to 100 different venues. |
travel across the country having gone to even 12 last year, however | did vote no because my main concern
was one, not being aware if we really were going to be able to support this and sustainable funds without

Special Bd. of Aldermen — 11/26/2018 Page 17

affecting our community and second also being concerned as to what philanthropy was going to be going
towards it when we have children that don’t have meals outside of the school program and other issues.

The other concern that came out was in regard to integrity and the one thing that | want to leave you with as
each one of you is representing the people in your communities, as | recall, right before the voting occurred, all
the headlines of the Telegraph talked about our large donor our pending large donor. And | don’t know about
you but if | am paying, a lot of people will get in my car and go somewhere. So my question would be did the
community really vote this in because they thought the funding was taking place and this would be a place of
enjoyment without worry or concern as to how we are going to be funding this, if it was going to affect the
philanthropy that was going to other non-profits whether it was eventually hit our tax dollars. So whether we
are looking at a $10 million dollar bond or a $15 as you are looking at the design and every effort, have that
question in the back of your mind. Was this voted in in integrity with full awareness of our community? Thank
you.

Barbara Pressly Thank you, Barbara Pressly again, 11 Orchard Avenue. | don’t know if this is true or not but
at least in my memory if you do vote for this tonight you will basically be overriding the citizens’ vote. And
please think about that, because what that means in the future anytime the citizens vote an issue up or down,
people can say oh don’t worry about that we can change that later if we want to. So please consider, my
concern is the truthfulness and the integrity and the perception of can we trust our Board of Aldermen. So
please think about it. See if you can’t find another way to work on this project and take advantage of all that
you have learned, but not violate the vote that was taken. Thank you.

ADJOURNMENT

MOTION BY ALDERMAN WILSHIRE TO ADJOURN
MOTION CARRIED

The meeting was declared adjourned at 8:24 p.m.

Attest: Patricia D. Piecuch, City Clerk

S\\ THE CITY OF NASHUA

Economic Development Division

"The Gate City”

Memo: Lori Wilshire, President

Ce: Board of Aldermen

From: Tim Cummings, Economic Development Director
Date: November/2018

RE: Amendment to R-18-001

Purpose

We have worked diligently and methodically over the last nine (9) months since the bond was
first authorized and during that time we have learned a great deal. The purpose of the amendment
is to bring the current resolution up to date.

Amendment

The amendment allows for the designing of the Performing Arts Center (“PAC”) to occur prior
to the $4M in private funds being raised. The amendment further goes on to make explicit that
“New Market Tax Credits” will be one of the sources of private funds and provides greater
flexibility on how the funds can be used, i.e. endowment fund, capital costs or reduce the bond.

Background

This amendment is before the Board of Aldermen in an effort to keep the bond authorization
germane and accurate since its passing. Over the last year further planning on the Performing Arts
Center has brought about a few major new developments.

First, we are currently working with a private sector 3™ party operator to manage and run the
Performing Arts Center. This development makes the idea of setting aside $4M dollars into an
endowment unnecessary. Setting aside some money as an operating reserve (endowment) makes
sense and is recommended, but is not a prudent use of the limited funds at this time. It will be a
goal to have an endowment fund capitalized, but less than $4M.

Second, we brought on our New Market Tax Credit (“NMTC”) Consultant (and our General
Fundraiser) well after the bond authorization occurred and it was only after we received their
counsel that it became apparent that we would need access to bond proceeds in advance of
construction to design the project, which in turn assist us in bringing in the private sector funds.

>» To Be Explicitly Clear: As originally outlined there will be at least $4M of private funds
brought to this project and we have a goal of $6.5M of private funds to be raised for the
project in its entirety.

Timeline

We are working on a very aggressive timeline and every delay that occurs pushes the goal of
getting under construction further away. It is my hope to have the building under construction in
some fashion by the fall of 2019.

As of right now we would be looking to be under construction in the fall of 2019 and operational
by fall of 2020.

Recommendation

it is my recommendation that this amendment be adopted. To achieve the goal of bringing in the
approximately $6.5M in private funds for the Performing Arts Center this amendment is necessary.
Conclusion

If you want to advance the Performing Arts Center project then this is an essential next step,
because it will allow us to design the Performing Arts Center and flexibility in how the private
funds are used.

Thank you.