OVERALL PROJECT STATUS UPDATE
Design Update
The current status of the design is in the construction document phase (“CD”), which we entered in January of
2020. We anticipate being in this phase until June of 2020. Leading up to this phase we completed concept
design, schematic design and design development phases, which took approximately ten months.
Cost Estimate
1 am pleased to report that the costs associated with the project have not materially changed since schematic
design. The overall budget for the project is $23,803,238, which includes additional expenses beyond just the
building costs, but does not contain costs for any exterior work for streetscaping. Over the next couple of
months we will be looking to further reduce the project costs by at least $1.5 million, but targeting a reduction
of $2.0 million or thereabouts. Once this occurs we would have an approximate project cost of $21.8M -
$22.3M (this is the targeted goal).
Operator Update
The project is working with Spectacle Management, who responded to the RFP the City put out and entered
into a Memorandum of Agreement (MOA) outlining that the City would not need to subsidize the operations
of the Performing Arts Center. This negates the need for the originally conceived endowment fund as
contemplated in the Duncan Webb feasibility study. It is one of the biggest changes from the original plan.
Sources
There are three main sources for financing this project at this time: City’s General Obligation Bond at $15.5
million, New Market Tax Credit at $4.2 million and Local Private Fundraising Capital Campaign at $2.5
million for a total of $22.2 million.
Overall Financing Plan
Of the three major sources of funds for this project (City’s General Bond, New Market Tax Credits, and
private local capital), it is the intention to continue to pursue New Market Tax Credits of $4.2M, which
translates into approximately 20% of the project funding. Our New Market Tax Credit Consultant, Neil
Cannon has indicated an allocation announcement should be forthcoming from the U.S. Treasury sometime in
the early summer. The City of Nashua is providing approximately 70% of the project funding through the
$15.5 million bond resolution and the remainder of the funds, approximately 10%, coming from philanthropic
charitable donations and marketing/sponsorship opportunities through the auspices of a Capital Campaign
initiative.
1 would be remiss not to point out that the PAC Steering Committee is working toward a “Plan B” should a
New Market Tax Credit not come to fruition or one of the other sources of funds does not materialize. The
City understands there is an approximate 20% budget gap in the financing should this source of revenue not
come to fruition. If there is a goal to begin construction this fall, a new source of revenue will need to be
identified in order to make this timeline. In the summer of 2019 the Performing Arts Center Steering
Committee contemplated some other sources of funds: CDBG, advertise on outside of building, use proceeds
from sale of School Street parking, charge for garage parking and increase leased parking fees. At this time,
the Performing Arts Center Steering Committee wants to hold-off on making any of the above decisions until
the next round of NMTC announcements are made.
Timeline & Forecast
There is a goal to have the project under construction sometime in the fall of 2020. This is contingent on the
final financing plan being solidified, which I anticipate to occur in June of 2020. This coincides nicely with the
design timeline.
