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RESOLUTION:
PURPOSE:

ENDORSER(S):

COMMITTEE

T
ASSIGNMENT:

FISCAL NOTE:

LEGISLATIVE YEAR 2020

R-20-073
Authorizing the Mayor to enter Pilot Agreement pursuant to

RSA 72:74 with Pennichuck Water Works. Inc.

Mayor Jim Donchess

Pennichuck Special Water Committee

This resolution has no cash outlay by the City of Nashua but does impact
property taxes for future taxes.

ANALYSIS

This resolution authorizes the Mayor to enter into Pilot Agreement pursuant to RSA 72:74 with
Pennichuck Water Works, Inc.

Approved as to form:

Office of Corporation Counsel

O-20-030

ORDINANCE

ADOPTING A TAX INCREMENT FINANCING (TIF) DEVELOPMENT DISTRICT

UNDER RSA 162-K AND NRO 295-11, THE “SCHOOL STREET TIF” AND A TAX

INCREMENT FINANCING DEVELOPMENT PROGRAM AND FINANCING PLAN
FOR THE NEW TIF

CITY OF NASHUA

In the Year Two Thousand and Twenty

The City of Nashua ordains that Part II “General Legislation,’ Chapter 295
“Taxation,” Article V “Development and Revitalization Districts,’ of the Nashua Revised
Ordinances, as amended, is hereby amended by adding a new section as follows:

Ҥ295-12.1 District identified.

A. The following properties shall constitute a tax increment financing

development district:
The property identified as Tax Map 79, Lot 35
The property identified as Tax Map 79, Lot 54

The property identified as Tax Map 79, Lot 129

The property identified
The property identified
The property identified
The property identified
The property identified

The property identified

as Tax Map 81, Lot 3

as Tax Map 81, Lot 16
as Tax Map 81, Lot 81
as Tax Map 81, Lot 95
as Tax Map 81, Lot 98

as Tax Map 81, Lot 104

ORDINANCE O-20-030

B. Such district shall also include any lots created out of or established from the
foregoing lots.”

And further, it is hereby RESOLVED by the Board of Aldermen of the City of
Nashua that the attached “Tax Increment Financing Development Program and Financing Plan”
is hereby adopted for the tax increment financing development district comprised of land
identified in NRO Section 295-12.1.

LEGISLATIVE YEAR 2020

ORDINANCE: O-20-030

PURPOSE: Adopting a Tax Increment Financing (TIF) Development
District under RSA 162-K and NRO 295-11, the “School Street
TIF” and a Tax Increment Financing Development Program
and Financing Plan for the New TIF

SPONSOR(S): Mayor Jim Donchess

COMMITTEE

ASSIGNMENT:

FISCAL NOTE: The proposed TIF district at this time does not have any direct

impact on the City’s budget. This legislation sets out the
governance process necessary to capture the future tax
increment within the district, which we do not know, but could
range from $1,400,000 to $1,500,000 based on a five year

timeline. This money would be used to make improvements as
outlined om the plan.

ANALYSIS

RSA Chapter 162-K, adopted by the City in 1998, enables the City to establish economic
development and revitalization districts, in which enhanced property tax revenue is designated to
offset the cost of designated improvements, which may be financed by general obligation bonds.
NRO §295-11 adopts the general powers of RSA Chapter 162-K; this legislation adopts a new
development district comprised of the identified parcels situated on or around School Street and
adopts a development program and tax increment financing plan for the district.

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 goal is 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.

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, TIF DISTRICT
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TIF Development Program

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

UNFINISHED BUSINESS — ORDINANCES

O-16-017
Endorsers: Alderwoman Mary Ann Melizzi-Golja
Alderman Richard A. Dowd
AMENDING THE STRATEGIC PLANNING COMMITTEE MEMBERSHIP
e Personnel/Administrative Affairs Committee Recommends: Final Passage as Amended

O-16-019
Endorser: Mayor Jim Donchess
INCREASING SEWER USE FEES RATES AND CHARGES
e Personnel/Administrative Affairs Committee Recommends: Final Passage as Amended

O-16-021
Endorsers: Alderman June M. Caron
Alderman-at-Large Lori Wilshire
Alderman Richard A. Dowd
Alderman Ken Siegel
Alderwoman Mary Ann Melizzi-Golja
Alderman Tom Lopez
CHANGING THE NAME OF THE REVIEW AND COMMENT COMMISSION TO THE CITIZENS
ADVISORY COMMISSION FOR COMMUNITY GRANTS
e Personnel/Administrative Affairs Committee Recommends: Final Passage as Amended

O-16-022

Endorsers: Mayor Jim Donchess
Alderman-at-Large Lori Wilshire
Alderman Don LeBrun
Alderman-at-Large Michael B. O’Brien, Sr.
Alderwoman Mary Ann Melizzi-Golja
Alderman-at-Large Brian S. McCarthy

ESTABLISHING AN ENVIRONMENT AND ENERGY COMMITTEE

e Personnel/Administrative Affairs Committee Recommends: Final Passage

O-16-023
Endorsers: Mayor Jim Donchess
Alderwoman Mary Ann Melizzi-Golja
Alderman-at-Large Lori Wilshire
Alderman Richard A. Dowd
Alderman-at-Large Mark S. Cookson
Alderman David Schoneman
Alderman Don LeBrun
Alderman Ken Siegel
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Tom Lopez
Alderman-at-Large Brian S. McCarthy
Alderman June M. Caron
AUTHORIZING FREE HOLIDAY PARKING AT METERS IN ZONE III WHICH INCLUDES THE ELM
STREET AND HIGH STREET PARKING GARAGES FROM DECEMBER 11, 2016 THROUGH
JANUARY 2, 2017
e Committee on Infrastructure Recommends: Final Passage as Amended