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Special Bd. of Aldermen — 10/26/15 Page 5

Mr. Millan-Ramos So in a nutshell what is our recommended alternative, again on the site, the Mohawk
Tannery site? As | said, consolidating all the waste, sludge and soils from those satellite areas at lagoon areas
1 and 2 using one of three vertical containment technologies, | already mentioned we are leaning towards the
so-called secant wall, backfilling those excavations with clean fill, protecting the integrity of the encapsulated
area and preventing the use of ground water, the land-use restrictions and ensuring the remedy effectiveness
stays with groundwater monitoring and regular maintenance.

| know that you probably have a lot of questions about the cost estimate that we put in the EC/CA and | think
the best source of information that we have to show the basis of those estimates, is what we call the Technical
Memorandum. That is a document, it is called Removal Alternatives Update Technical Memorandum. It is on
our website and | have put here a link to the document. | have shared this with the City already | am sure and
it is a public document, it shows how the cost estimates were developed. The cost estimates that we included
in that amended EC/CA.

I’ve also left in this presentation the repositories of materials that we have including our own websites, offices
and the Nashua Public Library. And, of course, if you have any questions, please just call or send me an e-
mail and we will do our best to clarify anything. | think that is basically the gist of what | wanted to make sure
you guys understood tonight. Thank you.

President McCarthy

So | had actually asked a question regarding removal of materials and moving them around and | am
paraphrasing what | heard from some of the neighbors. There seem to be some of the neighbors who were
reasonably content with the idea of the secant wall to retain what is in the lagoons but less so with the
containment on top with the retaining wall and moving the sludge.

| guess my question would be do we have any understanding of the cost difference of if we are going to dig
material up, and move it from one place on the site to another, what would it cost for the amount of material
that we are talking about, to dispose of it instead. To contain the two big lagoons and to remove the waste that
is on the Fimbel site for example instead of moving it?

Mr. Millan-Ramos | believe we do have preliminary estimates for that.

Ms. Taylor We do. EPA didn’t really have a contractor that we had available to do an additional cost estimate
for this type of work so we actually asked the developer themselves and his consultant who is actually in the
audience tonight, Darren Santos, from Geolnsight, to work on an estimate for this. So they did contact the
disposal facility up in Rochester, NH and got some estimates for transportation and disposal and with all the
other line items and | have to tell you it is a back of the envelope calculation, it is not detailed, but they believe
that it would cost about $6.5 million dollars to dispose of Fimbel Door off-site, at an off-site disposal facility.

President McCarthy

That’s incremental cost or is that just the cost of removing it because presumably there is some cost savings if
we are not capping that on-site because we don’t have to build the ...

Ms. Taylor Yes | mean | don’t think that has been clearly determined in my discussions with the developer. He
feels like possibly if he didn’t need a retaining wall there possibly could be about a $2 million dollars saving.
So | guess there would be then $4 to $4.5 million dollars. But again, that is back of the envelope, we didn’t do
anything in detail.

Special Bd. of Aldermen — 10/26/15 Page 6

President McCarthy

The other alternative and | don’t know if this one is possible is expand the size of the containment area so that
everything that is contained is below ground held in by the secant wall and not by the retaining wall above
ground.

Ms. Taylor At this time we have not evaluated that. So | can’t really speak to it. | Know initially we were
looking at just an expansion cell for a stabilization alternative that we were looking at, however, we didn’t look
at that because that would be a lot of material that you’d have to excavate in order to place that material
underneath the ground.

Alderman Lopez

So you made a reference to 18 public comments | believe? | know | made one and then | also made a second
one which Gerardo had acknowledged. My second one was explicitly asking for detailed information about full
cap and what that would look like. | was told that wouldn’t be available but we would be presented, as the
Board of Aldermen, on that. And | had asked for something to the level of what was presented to the
neighbors with regards to the secant walls. So that is not happening here tonight.

Ms. Taylor We are more than happy to do that.

Alderman Lopez

That was what my comment was and | wanted to clarify that it was being made because apparently it is a
substantial part of the public comment that was made. | know Alderman Laws also made some comment and
a number of neighbors made comments both at the forum and presumably through the e-mail, but maybe they
didn’t. | also know that they gathered a petition. So there has been considerable public comment, it just may
not have fit the framework of what you are documenting as public comment.

| also wanted to clarify that several references were made to meetings with the City and the Mayor’s comment
that he hasn’t had formal meetings and | am an Alderman for Ward 4 so | would consider myself the City, and |
haven't been in the loop with this at all. So the opening statements with regards to multiple conversations and
multiple contacts and $6 million dollars spent in the last 20 years....

Ms. Taylor $4 million.

Alderman Lopez

Ok so $4 million dollars in the 20 years, | mean that is taxpayer money so all of us have been contributing that
as well, including the neighbors who have been living next to this for 30 years. So we are at a crossroads and
| think looking at the whole picture and all of our choices is important rather than just moving forward without
looking both ways.

Ms. Taylor Well | just need to clarify on the conversations with the City, | understand that we haven't been to
the Aldermen and met with the Aldermen, but we have had conversations with the City, | believe that the
Mayor has designated one person in particular and possibly a couple of others that we’ve talked to, probably at
least once a month for well over a year. So those are the people we have been talking to.

Alderman Lopez

Right and | just wanted to clarify that I’ve reached out a couple times and | have not been in the loop so as a
representative of that neighborhood, | am only seeing what you are presenting publicly and the only record of it
is what you are choosing to present. Your presentation is pretty weighted towards just encapsulation. | was

Special Bd. of Aldermen — 10/26/15 Page 7

approached by a pollution removal expert from Canada who just read in the paper that there were
conversations taking place and | did refer him. So I’m not sure whether you were in contact with him or not but
he did forward a thumbnail sketch of an estimate as well.

Ms. Taylor_| am unaware of that.

Mr. Millan-Ramos | haven’t received any communication in that regards.

Alderman Lopez

Well he might be in the audience so I’m sure he could make public comment.

Mr. Millan-Ramos The only thing | can think of is a gentleman that was advocating for digestion, you know
anaerobic digestion which is something that we are evaluating and preliminary results that we have so far
indicate that it is not a good fit for the nature of the contaminants we have in there.

Alderman Lopez

And | don’t want to stay contentious | just want to frame where my perspective was coming from and where |
think a lot of the neighbors are coming from, is we are getting a lot of contradictory information and they are not
entirely sure what the full scope of choices are. And they weren’t aware of that before they were able to make
public comment. But could you speak to the digestion issue and what some of the challenges would be with it?

Mr. Millan-Ramos Yes | do have information about that. Just to make sure we are accurate in what we are
saying. The feedback that we have received from our headquarter experts so far says that in terms of the
organic contaminants present in the sludge, many of the organic contaminants can be biodegraded under the
appropriate conditions. However, the organic contaminants in the tannery sludge are particularly recalcitrant to
biodegradation particularly in an anaerobic, meaning without oxygen, anaerobic environment in general
organic chemicals are more quickly degraded in the aerobic settings rather than the anaerobic approach
described in the proposed technology.

In addition, heavy metals in the sludge can inhibit the growth of microbes necessary to bio-remediate organic

containments. Anaerobes, that is microbes that grow under anaerobic condition, are particularly sensitive to
inhibitory compounds. So that is the summary of the research that we have done so far.

Alderman Lopez
This is the wrong kind of toxin and it wouldn’t go anywhere.

Ms. Taylor The materials that are contained in that sludge would basically kill the microbes if we put any
microbes in there. They don’t like that, so they don’t work well with it.

Alderman Lopez

They don’t kill naturally occurring microbes do they? Does that impact on the site?
Ms. Taylor No because that is all contained within the sludge itself.

Alderman O’Brien

Thank you Mr. President. Looking at the maps and being familiar with the property, | am extremely concerned
because it is adjacent to a river. The Nashua River flows into the Merrimack which also flows downstream and

Special Bd. of Aldermen — 10/26/15 Page 8

it is a water supply for several communities that take their drinking water and their firefighting needs or
whatever from the Merrimack.

Can this be looked upon financially as a multi-state type of issue, because | imagine that there are toxins and it
gets into ... is this particular area prone to flooding within the 500,000 or biblical flood plain area? When you do
encapsulate it, can it potentially leak and can it be more of a problem downstream as well?

Mr. Millan-Ramos | would say the short answer to that question is yes, all of that can happen if it is not
properly designed and properly built.

Ms. Taylor Or if it stays the way it is.

Mr. Millan-Ramos Correct. If the appropriate design is made and it is built correctly, little or no chance of that
happening.

Ms. Taylor Part of our requirements are that any of these containment structures have to withstand at a
minimum of 500 year flood. So any of these containment structures that are built, whether or not it be the cap,
if it is in the 500 year flood plain or the secant wall which would be in the 500 year flood plain, needs to meet to
be able to meet technical specifications in order to be protective of a 500 year flood. Right now, this material
has been sitting there, when did Mohawk Tannery first start disposing there?

Mr. Millan-Ramos It was in the ‘20’s.

Ms. Taylor ‘20’s. Yes. So it’s been there since the ‘20s and it is still there. Not to say that some catastrophic
thing couldn’t happen, that’s why we want to try to deal with it sooner rather than later and this is the perfect
opportunity to do that. Whereas, if we went ahead and tried to list it on the National Priorities List it would be
fully funded by taxpayers and it could be sitting on that priority list for years because there are a number sites,
even as of 2017, there are about 1,200, 1,300 sites on the National Priorities List right now, about 20 of them
do not have any funding and haven’t for over 3 years at this point. So we would need to go through that route,
whereas this route, it basically is being dealt with next summer.

Alderman O’Brien
In your experience, or anybody in the EPA have had a similar situation where this could be multi-jurisdictional
within the different states. Because my question is whatever contaminates are now leaking and if it is getting

into the Nashua River is it getting down as far as the drinking supply in the other municipalities.

Ms. Taylor At this stage we have not seen that there is any contamination in the Nashua River either in the
sediment or the surface water. We have tested that historically at the site.

Alderman Klee

Adding on to Alderman O’Brien’s question, in anything that we do, whether we use a secant, whether we
removed it, whatever happens, is there any probably or possibility of that action itself creating a leakage into it.
It is so close to the edge, that’s my concern.

Ms. Taylor Would building the secant wall create ....?

Alderman Klee

Or even removing it? | have been to a couple of meetings where people have said remove it all. Would that

alone, the act of doing that, the act of building a secant wall, the act of anything, can that create a potential of
contaminating into the river?

Special Bd. of Aldermen — 10/26/15 Page 9

Ms. Taylor | would say that is more likely if you remove it than if you built the secant wall.
Alderman Dowd

| don’t think some of the people here have heard your explanation of the approach that you are tending to use
and | think if you explain how you are going to contain that area and address the potential of not having leaks
and all of that and how it is built will probably answer a lot of questions that you might get.

Ms. Taylor Sure we can do that. We could have Darrin Santos who is the Environmental Consultant that will
be working on this should this go through, we could have him do it or we can explain it.

Alderman Dowd
| would say whoever knows the most about it.
Mr. Millan-Ramos | would defer to Darrin.

Darrin Santos, Geolnsight, Manchester, New Hampshire Good evening, my name is Darren Santos and I’m
with Geolnsight in Manchester, New Hampshire. | represent the developer Blaylock Holdings, Bernie Plante.
We have been working with EPA, pretty close, hand-in-hand in developing this containment approach. The
secant wall we find the most favorable for a few reasons. It is essentially a slurry wall and you all may know
about the Gilson Road Superfund site. They have a slurry wall there. That is traditionally done with an
excavator, where they trench down and mix cement slurry down while they are doing that. It is an effective
approach but at our site, the secant wall is essentially a controlled slurry wall installed with these shafts that
are drilled down.

So you drill the shafts down, there is a casing and an auger and it displaces the soil and then you pump the
cement grout into it. So when you reach your target depth and start pumping the grout in, you know you are
filling that shaft up, versus a trench system where you are down 25 feet and the wall could collapse on one of
the sides. For our site, if it is the riverside, then we have just breached the natural bank that is there, so again
a controlled manner here. Just quickly the way it is put in, is the skip every shaft and then they come back and
drill the ones they skipped on which then overlap the previous two and actually drills out and creates this
overlap.

Ms. Taylor Kind of like Olympic rings.

Mr. Santos They are, | would say traditionally seen in infrastructure projects, things like the Big Dig or down in
the city in Boston when you need to build a big building and you need a foundation, they do secant, you can do
reinforced concrete walls and parking garage structures, and it will hold back water and soil. The design here
is to go with what is called a cement bentonite slurry. It is called low strength and it has flexibility to it.
Reinforced concrete when it cures will tend to crack. This cement, the bentonite is an expanding clay so that
additive to it will cause these to expand and essentially self-heal to cracks. Kelsey, can we get the cross-
section?

So in pink or magenta you see the secant shafts that go down. These will be very impermeable to liquid. The
secant shafts themselves; they will also be seeded down into the glacial till, which is hard compact soil
compacted by the glaciers years and years ago. It is relatively impermeable itself. So that essentially creates
the bottom liner to the system. And then as Gerardo explained before, we have an actual reinforced concrete
panel or poured retaining wall that would be above grade to receive the Fimbel sludge and that then would be
capped with an impermeable cap that you would see in a landfill.

Special Bd. of Aldermen — 12/20/2018 Page 7

Mr. Cummings

So to Alderman Gidge’s point though there are ways where there are weaknesses that we are thinking about.
An example of that is the operator and you know one of the things that | was really concerned with and we
have been internally struggling with is making sure we have an operator in place and make sure that operator
is reputable. Originally we were thinking we were going to create a non-profit and have that non-profit execute
and then we moved away from that and we have a really respected operator who has done this time and time
again that should give us confidence that they can replicate it here.

But then in addition to that, what | recommend and | hope will finally occur is the minimum contract that we
enter into with that operator be 7 years. So that way the equity investor and the CDE all know what they are
buying for the 7 years. So we do have weaknesses, we are trying to think through where those weaknesses
are, we are trying to strengthen them so that we have the best project as we move forward. Again, this is
evolving; each different element brings about a new surprise which we are trying to address.

Alderman Dowd

| am pretty sure | understand the process and hopefully my questions aren’t quite as innocuous. The question
| have, oh and before | say that, everyone that is involved in each one of those blocks has a vested interest in
this being successful. So for it to fail -— somebody would have to have a least invested interest in making it
successful and | don’t think you’d find that

The first question | have is in the upper left hand corner, the $15.5, as | understand it we would have to sell the
bonds for that to start. So my question is when is that and how is the amount of time to set up the rest of it?

Mr. Cummings

Thank you, so when you'd have to sell it is going to come about after we get basically a letter of commitment.
So it is a two-phased type of approval process; a CDE if they are interested in us will give us notice that we are
eventually receive the credit or the allocation. Once that occurs, there is a window of period in-between that, 3,
4, 5 whatever it is months and we would need to begin the process of selling the bond and using the bond
proceeds. During that time is when you actually set up all these other structures that go along with supporting
this deal.

Alderman Dowd

What do you feel is the time-frame to get from the upper block to have everything in place?

Mr. Cannon The bond funds have to flow into the project at closing, and we expect, we hope to hear, get some
kind of commitment from CDE’s the next round of funding for CDE’s is in February, we hope to get some kind
of positive reaction, whether it be one CDE or two CDE’s by the end of March. Given that we would expect to
fall 2019 closing. Once the closing date is set, the bond can be sold.

Alderman Dowd

So | have a question for Mr. Fredette if he’s still here.

President Wilshire

Treasurer Fredette, could you come up to the microphone please?

Special Bd. of Aldermen — 12/20/2018 Page 8
Alderman Dowd

Don’t worry it’s not going to be a hard question.

President Wilshire

He’s up for it.

Alderman Dowd

So my question is with what is happening with the Fed right now are bond interest rates going up and could we
sell the bond ahead and keep that money aside or do we have to sell them when this starts?

David Fredette, Treasurer Tax Collector

| would not recommend selling it ahead. There has been discussion this bond might be sold as taxable the
rates would be a little higher for a taxable bond versus non-taxable. | wouldn’t sell it ahead. We will be ready
and prepared to sell when we have to. We could do it fairly quick.

Alderman Dowd

Ok | trust your opinion.

President Wilshire

Director Cummings did you have something to add to that?

Mr. Cummings

Yes and also | just want to point out that it is somewhat of catch 22 that we are in, we are in a chicken and an
egg because we technically can’t sell the bond until we raise $4 million dollars. So in our resolution unless we
were to amend that again and | really don’t want to amend that resolution again, we can’t sell it anead of time.
But we as a team here internally in City Hall, Finance, Legal, you know Economic Development along with our
consultants have been working on this regularly and we are trying to line everything up and making sure we
have all our ducks in a row so when we need to, we can just cut this loose and go as quickly as possible.

Alderman Dowd

As we are trying to, and | know | have had some discussions with | can’t remember her name, the person who
is trying to raise money?

President Wilshire

Betsy McNamara?

Alderman Dowd

Yes, thank you. It appears like we are trying to get some of this private money just locally but have we had any

thought of going to say Boston and people with a lot of money, especially if you are looking at naming rights,
quite frankly | don’t care whose name is on it if they are going to give a few million bucks for it.

Special Bd. of Aldermen — 12/20/2018 Page 9

Mr. Cummings

So to answer that question, the answer is yes we are very much looking to sell those naming rights and
wherever we can sell those naming right, whatever entity, we are looking at regional actors, we are looking at
actors in Boston, major corporations that might have a presence here but have a headquarters in Boston in
particular. We have been in active conversations with them.

President Wilshire

All set Alderman Dowd.
Alderman Dowd

Yes all set.

Alderman Klee

Mine is going to be quite easy. These slides, is there any way that we can get them electronically? As much
as | love this, | can’t see it.

Mr. Cummings

Sue Lovering already has them.
Alderman Klee

Oh she does, ok so we will get them, thank you so much.

Alderwoman Kelly

| just have a quick actually | guess this is for Corporation Counsel, is there a difference between selling the
bond and using it in terms of, | think the wording says — no money shall be spent.

Attorney Bolton

| don’t think any of this is a problem that we have to worry about. These transactions don’t take place until you
have commitments everywhere. Then go down the checklist and everything happens in a matter of days if not
hours. Once we know we will have the tax credits to sell, we may not know the exact figure we are going to
get, but we know it is going to be over $4 million; we are pretty sure it is going to be over $6 million. So we
then have the commitment for the private funds, we sell the bonds, we put that money into the pot and the
transaction closes. So it all happens virtually simultaneously and we have assurance that the private
investment is going to be there.

Alderwoman Kelly

Thank you that was a really great explanation.

Alderman Lopez

So my question is more about the process of public involvement, so | know Alderman Melizzi-Golja showed a
lot of leadership in making sure that we did get this presentation before the Board so that we are all familiar
with what is going on. But we didn’t have it before, we had the discussion about the last amendment. It said in
the video it was very important to be speaking in person, often and very transparently and | think that is

Special Bd. of Aldermen — 12/20/2018 Page 10

something that we have to be mindful of, because with multiple steps and multiple resolutions that need to be
passed, it is going to be very important that we, who answer to the people, are able to articulate why we are
doing certain things, we are able to answer questions or address it. So we need the tools to do that, which
means we also need to be very transparent and very cooperative at this point, moving forward.

So how do you envision that happening? | know we have the Facebook group and that is a great start. | know
we have Performing Arts Center, but where are people to be looking to see updates, what is happening next?

| mean is there going to be like a section of the Economic Development Page or where should people be
looking?

Mr. Cummings

| am not exactly sure where you are going with that or what you mean by “more information”. | mean this
essentially solidified, so this is substantially complete. There’s some additional understanding necessary as
we get underneath the Master Tenant, that is an evolving conversation. As the Steering Committee continues
to meet, City Hall internally continues to work through the process there will be some additional details and we
will be happy to make this available on the Facebook page. | will update the project website page for those
people who don’t have Facebook. But! would like to give this presentation essentially to the Steering
Committee for the Performing Arts Center, most likely the Capital Campaign Committee is going to want to
understand this. So we will start that public education effort.

One of the things | wanted to extend to this group in particular, if you want to have a further conversation about
this deal structure one-on-one in a more intimate setting, feel free to reach out to my office. I'll be more than
happy to set up whatever one-on-one meeting or small groups meetings if you feel like you need to get more in
detail about this. I’d be happy to make myself available for you and for anyone else frankly, who really wants to
kind of understand this. | love this stuff, this is what | do, right? So this is how you make projects work, this is
how you attract private, positive economic investment to a distressed area. This is how you start to bring about
redevelopment in a community and frankly | hope this is the first of a couple projects that we actually look to do
with this, leveraging this private sector money for our community's benefit.

Alderman Lopez

| personally have no concerns about this now that | understand it. | know | did a lot of my own background
research when we started talking about it, to make sure that | knew what | was committing to. | agree, this has
a huge amount of potential, | do not believe that this chart is going to explain the steps each ordinance or
resolution that comes forward to the Board and | think we need to make sure that the purpose and place of
each one is presented in an easily followed format of — this is the checklist, we are doing step 4 right now — this
is a checklist we are doing step 6. And | think that having the conversations in the other groups and boards will
be helpful because you will be able to have on record the conversations and the questions that | was asking.

And | do recognize the value of having one-on-one meetings and really getting as individuals on the Board,
getting literate in this so we can advocate. Thatis also the opposite of transparent though, so what | was
asking is do we have a public step-by-step process that can be followed so people know where we are and
what we are doing so there isn’t any confusion about whether — are we changing direction, are we restructuring
the rules? There was a lot of public concern that we were changing the guidelines and moving goal posts
which | did not believe to be the case, | think our vote reflected was not the case. However, the concerns are
going to come up and we may face repeated questions about that. And | want to make sure that this process
is as smooth and focused on facts and progress as it can be, especially given that we need to be successful
for 7 years if we are going to have our best chance.

Special Bd. of Aldermen — 12/20/2018 Page 11
President Wilshire

Alderman Lopez throughout the process | have asked Director Cummings to come before this Board and
update us regularly on where they are in the process. So he and | have yet to work out the details of how that
might look, but | expect it might be maybe the 1°' meeting of every month or maybe the 2™ meeting of every
month that he can meet with us, maybe at 7:00 prior to a full board meeting and update us. Does that help?

Alderman Lopez

It does, I’m just kind of imaging a flow chart, but whatever people can follow, and whatever is material we can
point to when people are saying — are you being transparent, what are you doing now. | think having
information coming directly from people involved in the planning, rather than through word of mouth and
whatever is going to help us all be on the same page.

President Wilshire

Agreed.

Mr. Cummings

So to the point if | may Madam Chair, we will put together a one-pager flow chart, it will be disclaimed that it will
change and evolve. But we are happy to do that, that is easy enough to do. | will say that from now until
talking to a CDE this will pretty much substantially stay as is The next big milestone that will occur is really
once we have the CDE on board and we have more robust conversation with that CDE. But between now and
then, | will be happy to put a one-pager together and outline this flow chart for you. And I'll be here whenever
you ‘d like.

Alderman Lopez

| just want to acknowledge publicly that | recognize the position you are in because you are putting this
together and prior to a couple weeks ago, there might not have been enough certainty of exactly how this will
work, who the partners were and all that, so there is a period where there needs to be planning and
organization, but | just want to make sure that as we start to introduce multiple motions we have the support
we need and there isn’t more confusion.

Mr. Cummings
Madam Chair if | may, Niel out of curiosity how many versions of this have you done?

Mr. Cannon. 17 probably. I’m just thinking of another version we could overlay this with like numbers and
circles and would focus on every place that there needs to be City Council Action.

Alderwoman Melizzi-Golja

That would be very helpful thank you.
Mr. Cannon We will find a way to do it.
President Wilshire

All set Alderman Lopez.