Report of the Finance Committee Page 9
April 6, 2016
From: Dan Kooken, Purchasing Manager
Re: Change Order #1 for Additional Work for Newton Drive Forcemain (Value: $5,400)
MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND APPROVE CHANGE ORDER #1 TO
THE CONTRACT WITH CRISP CONTRACTING IN THE AMOUNT OF $5,400. SOURCE OF FUNDING IS
DEPARTMENT 169, WASTEWATER; 54, PROPERTY SERVICES
MOTION CARRIED
UNFINISHED BUSINESS — None
NEW BUSINESS — RESOLUTIONS
R-16-020
Endorser: Mayor Jim Donchess
AUTHORIZING AN AGREEMENT TO RESTRUCTURE THE DEBT OF CLOCKTOWER HOUSING
ASSOCIATES LIMITED PARTNERSHIP
MOTION BY ALDERMAN SIEGEL TO RECOMMEND FINAL PASSAGE
ON THE QUESTION
Attorney Andrew A. Prolman, Prunier & Prolman PA
| represent the Clocktower Housing Associates. We have an opportunity to help out Clocktower with some
financing and in doing so we hope to deliver a healthy check to the city for your cooperation. You may
remember that a couple of years back we, Clocktower and some lenders had an agreement in 2011 for
something very similar to what we are proposing tonight. Unfortunately, that deal never came to pass but we
are back and we have a bank out of Boston and Baltimore, M&T Realty Capital who is processing a Fanny
Mae loan. We have agreements with the lenders involved; the second lenders for a significant reduction in
payments and with the cooperation from the city with subordinating a certain loan there will hopefully be a
payment of no less than a half of million dollars to the city for the city’s cooperation. Currently on Clocktower
there are three mortgages securing a lot debt. The first mortgage is for a little over $4.5 million and it’s held by
a company called Walker & Dunlop. That mortgage is doing fine, it’s current and being paid and we have no
issues with it. The second mortgage is held by a company called Nashua Commercial Loan Holdings and we
have a problem on that mortgage; that’s for a little over $13 million. The third mortgage on the property is held
by the City of Nashua and the City of Nashua originally acted as a conduit for HUD. HUD gave the City of
Nashua $10.9 million to give to the Clocktower project to get it off the ground and to add equity to the project
and to secure 55 low income housing apartments in the project for as long as that loan is involved. Those low
income housing units are staying with this refinancing. The issue that we have is that the second mortgage
holder, the $13 million with Nashua Commercial Loan Holdings, they only acquired their interest in this project
last year. They made an investment, they are an investment company and they have no interest in low income
housing, they want a return on their investment so they have made demand upon Clocktower for the full
payment of the $13 million. We, Clocktower have said we don’t believe that you have the right to do that,
however rather than fight that out in court for a year, let us refinance if you will take a discounted number and
we will pay you off. They have agreed. There was a stand-by agreement that was part of the original package
that we gave to the city and that said if we can pay the second note holder, Nashua Commercial, $6 million
they will fully release their note. In exchange for a payment of $6 million we are going to be relieved of $7
million worth of obligations. | don’t think anyone would disagree that it’s a great asset for the downtown core.
We have a proposal for a $13.5 million new loan that will pay off the first, pay the $6 million to the second and
get rid of the second, pay the city pay reserves and closing costs and everything that goes along with a
sizeable transaction, pay the city at least $500,000 in exchange for your assistance with this transaction. The
assistance is two-fold. Number one is that the city would agree to subordinate its position to the new loan, to
get behind the new loan so you would be in second position behind a new loan of $13.5 million. Number two,
