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ORDINANCE ANALYSIS CONTINUED O-20-030

A development district may be designated by the Board of Aldermen upon a finding that it will
serve a public purpose. RSA 162-K:5. The district development program and tax increment
financing plan details the proposed public and private uses of the district and estimates the cost
of the development program and the sources of revenue. See RSA 162-K:°6 and 9.

Prior to designating any development district, a hearing shall be conducted by the governing
body, held at least 15 days prior to the date on which action on the proposal is scheduled to take
place. Notice of the hearing, including a description of the proposed district, shall be posted in 2
appropriate places in the City or published in a newspaper of general circulation at least 7 days
prior to the hearing. See RSA 162-K-4.

Before formation of a development district, the City shall provide a reasonable opportunity to the
county commissioners and the school board to meet with the governing body. The governing
body shall fully inform the county commissioners and the school board of the fiscal and
economic implications of the proposed development district. The county commissioner and
school board may present their recommendations at the public hearing. See RSA 162-K°9, IIL.

The City’s annual report shall contain a financial report for any development district in the City.
RSA 162-K:11. The Board of Aldermen must designate an administrator and advisory board for
the development district. RSA 162-K:13 and 14. This legislation has the Economic
Development Director serve as the administrator and the Advisory Board is described in the
Plan.

Approved as to account Financial Services Division

structure, numbers and

amount: By: /s/ John Griffin

Approved as to form: Office of Corporation Counsel
By: /s/ Celia K. Leonard

Date: 9/2/2020

School Street

Tax Increment Finance District

Development Program & Financing Plan

Date:

Adopted by the Nashua Board of Aldermen

TABLE OF CONTENTS

Introduction

Purpose & Objective

Background

District Boundary

Conformance with District Limitations Per RSA 162K:5

Proposed Improvements

Economic Benefits

Environmental Controls

Proposed Re-Use of Private Property

Relocation & Displacement

Operations & Maintenance of the District

Estimated Cost of Development Program

Funding Sources

The TIF District & RSA 79E

Wy] WY] CO} CO] CO] CO] NI] NI] Oo] Ur] Ga] BY] WO] GO]

Development Agreements

b
oO

Impacts on the Other Taxing Jurisdictions

b
oO

Plan Amendments

a
a"

Duration of Program

a
a"

TIF District Administration

b
No

Advisory Board

b
QO

Annual Report

Appendix A - District Boundary Map

Appendix B —2003 Downtown Master Plan

Appendix C— 2015 Downtown Circulation Study

Appendix D- Performing Arts Center Feasibility Study

Appendix E-Technical Memo on Parking Located On the Ground Floor of the School Street Parking Lot
Appendix F —Property Cards

Appendix G — District Properties, Acreage and Established Value

Appendix H — Adopting Provisions of RSA 162-K

Introduction

In accordance with the provisions of RSA 162-K, Municipal Economic Development and Revitalization
Districts, the Nashua Board of Aldermen hereby establishes the School Street Tax Increment Financing
(“TIF”) District, and the associated Development Program and Financing Plan (hereinafter "the TIF
Plan").

Purpose & Objectives

The purpose of the TIF Plan is to advance the desirable development, redevelopment and physical
improvements along the adjacent to West Pearl Street and School Street creating a mixed-use
environment and a growing multi-family neighborhood. This plan is to create the framework to fund a
variety of public improvements necessary to support this vision.

The objectives of this development program and TIF plan are to:

e Improve and upgrade public infrastructure and public amenities that encourage and

create opportunities for businesses and housing to locate and expand within the district.
e Enhance employment and residential opportunities for area residents within the district.
e Expand the property tax base.

e Enhance artsand cultural assets within the district including continuing supporting the
future Performing Arts Center located at 201 Main Street.

e Toor improve parking either through management or adding additional parking.

Achievement of these objectives will occur through a combination of efforts. Existing and future
property and business owners, new investors, and City staff and the City Board of Aldermen will be
required to discuss redevelopment initiatives, and work cooperatively on funding plans and projects.

What happens to one singular building is important, especially to its owner, but more important is the
goal of implementing comprehensive revitalization efforts that help support the economic, cultural, and
societal health of the entire neighborhood. The goal, purpose, objective, and strategy of the City of
Nashua is to work in a systematic and dedicated fashion to bring vitality, excitement, and character to
an area that is ripe for reinvestment in an area of the citythat is changing. The downtown is going
through a renaissances moving away from retailas a mainstay to an entertainment and arts and cultural
district.

Without question the overarching goalis to increase property values and to do this strategic public
investments are necessary.

Background

The city issued a Request for Proposals (“RFP”) in the winter of 2017 seeking realestate development on
79 Map 54 Parcelan 80+ surface parking lot. Over the course of the past four years working with
Lansing Melbourne Group (“LMG”) on developing a plan for this surplus piece of property. Thereis a
proposal to erect a 144 unit apartment building on the air rights above the parking lot. During the
development of this proposal the abutters raised the question as to whether public parking could be
provided for on the first floor. This led toa re-visioning of how the city and the developer would move
forward.

Simultaneously, the city over the last few years has contemplateda streetscaping and infrastructure
enhancement along West Pearl Street coupled with a reversal of the flow of trafficon West Pearl. More
broadly this would also allow for the squaring off the “Courthouse Oval” on Walnut/Central and
Factory/Chestnut Street(s).

In addition to the above the city along with some very committed private sector stakeholders have been
working diligently to bring a Performing Art Center to the City of Nashua. When this comes to fruition it
will bring about a cultural asset like no other to the area will assist in the neighborhood in transitioning
into an entertainment and artistic district.

District Boundary

The boundary of the district is shown on Appendix A and included below. The map delineates a land
area of 1.63 acres incorporating essentially half of a block from Main Street to Elm Street running along
West Pearl Street then crossing over and traveling up School Street halfway.

VG geso OS” dae

i TIF DISTRICT
+z | es fect is
i 0 120 240 400 :

TIF Development Program

The following outlines the elements of a development program per RSA 162K.

Conformance with District Limitations per RSA 162-K:5

The size of the district is 1.63 acres. The City of Nashua has a total of 19,712 acres. Therefore the
district represents significantly less than the 5% maximum of the total City acreage per RSA 162-
K:5.1.

The total assessed value [as of April 1, 2020] of all taxable property within the TIF boundary is
55,007,000 or less than half a percent of the total of all taxable property within the City. Per RSA
162-K:5.Il the properties within the TIF represent significantly less than the 8% maximum
allowable of the total assessed value demonstrating conformance.

Proposed Improvements

The 2003 Downtown Master Plan highlights a broad range of concepts and recommendations that can
facilitate economic revitalization for specific properties and calls out certain areas where there could be
a transformative development catalytic for the area, which would reinvigorate the blighted area(s). The
plan contemplates specific improvements as well as articulating broad-based themes. It is the belief of
the that the best TIF plan is one which does not lock the City into a defined list of specific projects; re-
development goalsor the infrastructure needs of the City, because they can shift with changing
markets, or asa result of different land uses that might be proposed for a specific property. However,
the design framework outlined in the 2003 Downtown Master Plan is very applicable and will be used as
a guide. Ultimately, being flexible towards what potential TIF projects might work at a certaintime will
provide for the best utilization of TIF funds, which are, at the end of the day, the incremental tax
revenues paid by the TIF District. Again, the 2003 Downtown Master Plan is a guiding document, please
see Appendix B.

The 2015 Downtown Circulation Study, please see Appendix C is another document that provides
additional guidance on how the circulation and flow of traffic could improve with broad based
improvements to the downtown area. Ultimately, the 2015 Downtown Circulation Study attempts to
better connect Main Street to the Broad Street Parkway with ancillary improvements suggested to
create a better downtown environment.

Finally, The Performing Arts Feasibility Study, please see Appendix D, which outlines the City’s overall
vison to have a 750 seat flexible venue in the heart of downtown to help revitalize the city.

There is a broad framework of projects that could provide for enhanced revitalization efforts; examples
include, but are not limited to, the following:

e = Infrastructure improvements [sidewalk/crosswalks/utility upgrades and relocation] that allow
for better utilization of property in the District; or stormwater drainage upgrades that will
provide for enhanced protection of the Nashua River;

e The construction of, or improvements to, public spaces that will create better links between
city residents and visitors to the downtown, which is important to our City's economic history
and cultural fabric;

e Construction of a Performing Arts Center;

e Open spaces introduced in strategic locations to support a mixed use environment and provide
good urban design benefits.

City of Nashua

Office of The Treasurer

, . 603) 589-3185
229 Main Street - Nashua, NH 03060 Fax (O0n)eeo sone

To: Board of Aldermen January 28, 2016
From: David G. Fredette, Treasurer/Tax Collector \).C, 4 ‘

Re: Purchase replacement for the 2003 Dodge Caravan
Capital Equipment Reserve Fund (CERF)

The purpose of this communication is to request approval from the Board of Aldermen for an item that
was planned to be listed in the FY2017 CERF Replacements list. Recently the 2003 Dodge Caravan —
messenger van, which was used by Purchasing for various tasks throughout the city, was totaled in an
accident. This vehicle was planned to be replace in FY 2017 at an estimated cost of $25,699.

Currently the city has to date purchased 19 of the approved items listed on the planned FY 2016 CERF
replacement schedule for $1,913,779 which is $151,159 below the planned replacement cost of
$2,064,938. As a result, the CERF has sufficient funding for the city to purchase a Ford Transit Van
for a net cost to CERF of $18,500 ($22,500 less $4,000 reimbursement from the Risk department).
The Purchasing department is currently using the Building Maintenance and Information Technology
vehicles to perform their work.

Pursuant to NRO 5-127.1 D Capital Equipment Reserve Fund, which states: “During that fiscal year,
the city may purchase that equipment, or equipment that will serve the same stated purpose as the
listed equipment as long as the price does not vary by more than ten percent of the estimated
replacement value. All purchases from the Capital Equipment Reserve Fund must comply with the

city’s purchasing approval process. Any other requests to use funds from the Capital Equipment
Reserve Fund must be approved by the board of aldermen.”

I respectfully request the approval from the Board of Aldermen for the purchase of a 2016 Ford Transit
Van used by the Purchasing department. The purchase would proceed through the Finance Committee
approval process.

Cc: Mayor James Donchess 16-002
John Griffin, CFO/Comptroller
Dan Kooken, Purchasing Department

e The acquisition of buildings or properties which would be better utilized for a public purpose
[ex. parking or open/recreational spaces]; and,

¢ Transportation projects that improve access to the TIF District and/or provide for pedestrian
safety. Including looking at the one way reversal of traffic flow and the adding of parking spaces
on street.

EachTIF project which is presented to the Board of Aldermen will be linked with one of these general
project categories. Each project must also satisfy one of the "public use" definitions contained in RSA
162-K:2. Each project that is approved, following a public hearing, by the Board of Aldermen will
constitute a formally adopted modification to this overall TIF Plan, and it's Financing Plan.

Any project brought forward to the Board of Aldermen for approval will need to address how the
Downtown area of (West) Pearland School Streets Tax Increment Financing District is enhanced, utilized
or benefited through the implementation of the project. The Board of Aldermen understands the
importance of this land area, especially given the valuable resources being associated in a vibrant
downtown.

Examples of improvements that could be part of a TIF project include:

e Streetscaping on West Pearl Street; and
e Construction of a Performing Arts Center
e Sewer upgrades

e Utility Pole relocation(s)

e = Parking (Management/Creation)

Economic Benefits of the Overall TIF Project

The framework of these improvement categories described herein are required in order to service the
existing population and accommodate and encourage future growth. It is the latter that is needed most
in the City. As pointed out earlier in this Plan, the economic viability of the downtown area has suffered
and is starting to resurge.

The decisions by the Board of Aldermen to undertake TIFimprovements coupled withthe positive
initiatives being brought forward by some owners and investors canand will be a significant catalyst for
an upswing in the downtown economy. The combination of TIF projects, private investments, and the
use of other state and federal loan, grant and taxincentive programs creates a cooperative framework
that can be very effective and transformative.

The complete economic revitalization of the downtown will be fulfilled with many small steps. Progress
is being made, and will continue to be made, through cooperation and communication. Adopting a TIF
programis one strategy that needs to be cultivated along with other downtown improvement
strategies. One singular approach will not solve all of the economic issues within the downtown.

The following is a list of potential future forecasted development or redevelopment within the district:

Project Location Use Estimated Tax Revenue
School Street Apartments School Street Housing $430,000.00

*The calculation uses a 2019 tax rate

Goals and needs of the business community and city residents must be openly discussed and aligned.

All aspects of a project must be clearly outlined and understood by all parties this way, the economic
benefits of this overall TIF Plan and the future project-specific modifications will be realized. The 2003
Downtown Master Plan shall be the principle guiding document due to its breadth in scope outlining the
desires and wishes of the community due its extensive outreach efforts to gather community input.

Public Facilities

There will be a variety of public facilities potentially constructed as discussed including a Performing Arts
Center and Streetscaping improvements along with the addition of additional parking.

Open Space Planning

As referenced in the 2003 Downtown Master Plan open space and the creation thereof along with the
associated recreational opportunities and aesthetic improvements of this nature are important factors
and should be taken into consideration for an overall downtown area. These improvements need to be
balanced with the potential development that is also encouraged in a downtown, because seeking
economic development opportunities is also a priority, especially to ensure there is sufficient revenue
available to finance improvements. In this limited TIF District Open Space Planning will not be highly
prioritized due to the small land area.

Environmental Controls

Given the historic nature of the developed areas of downtown Nashua and the industrial activities that
occurred in the mills, without question there are environmental issues and concerns that will need to be
dealt with during any project. The City of Nashua, as well as private parties, will be required to comply
with all appropriate environmental regulations. These regulations may include, but are not limited to,
any or all of the following:

° State and federal regulations regarding the protection of wetlands and floodplains

° Local/State standards for design of public sewer systems

° Local/State permits regarding soil disturbance/filling

° Local/State and federal regulations regarding air, water, and noise pollution

° Applicable building and life safety codes, zoning ordinance and site planning regulations
° Contamination by hazardous materials and the required clean-up protocols

Proposed Re-Use of Private Property

Since the Board of Aldermen will consider specific projects as plans are finalized in future years, it is
difficult to know for certain what the intersection of private property and public projects will look like.
The City has explored in the past the acquisition of certain properties for public uses, and it is expected
that this approach will remain anoption for future projects. As with all TIF projects, the costs and
benefits for a possible purchase or taking of private property will be weighed with great care. All public
uses and any private uses, whether through lease agreements, outright sales, or other appropriate
mechanism will be conducted in conformance with all applicable sections of the RSA 162-K.

Relocation and Displacement

The City of Nashua will work to minimize the impacts of relocation for any residents or businesses within
the District boundary. All relocation and dislocation activities will be in conformance with RSA 162-K,
Section 6 and 15. Prior to the final acquisition of any property that is part of a specific TIF project and
which would involve persons displaced by the project, a Relocation Plan will be prepared and submitted
to the Administrator for review and approval. A copy of this plan will also be submitted to the Advisory
Board for comment.

Operations and Maintenance of the District

The added cost for operation and maintenance [O & M] associated with the specific design of a TIF
project will be part of the proposal package presented to the Board of Aldermen. The City will make
every effort to minimize added O & M costs. If significant added O & Mcosts are identified, then, at the
discretion of the Administrator funding of O & M costs may be part of the TIF Financing plan.

One of the goals, which is of the utmost importance is that no additional O & M be placed on the city's
general budget.

Estimated Costs of the Development Program

Due to the fact that the Nashua is utilizing a project-specific approval process, it is not possible to
provide estimates at this time for a development program. Any TIF project presented to the Board must
include a complete cost estimate.

What is known is that the Nashua Performing Arts Center Feasibility Study is acting as a guiding
document. This project is well underway with a total project cost of $25.0 million. There are a few
identified sources of funds, but a gap of approximately $6.0 million, which TIF funds could be used.
Additionally, attached in Appendix E is a technical memo outlining the costs for the proposed parking to
be included into the School Street Apartment project.

It should be noted, that the above are two known projects that were the impetuous for the
development of this TIF. Over the coming yearsif a new project is proposed a full cost estimate will be
included and understood.

Funding Sources

The City of Nashua intends to use multiple funding sources to complete the proposed work associated
with any TIF project. Without question, a comprehensive revitalization program needs to utilize a broad
range of funding sources or support mechanisms.

Examples include:

¢ Community Development Block Grant programs (CDBG)

e USDA Rural Development Grants

e NHDESFinancial Assistance Water or Wastewater Grant programs
e New Market Tax Credits

e = Historic Tax Credits

e¢ Community Development Finance Authority programs