Report of the Finance Committee Page 11
April 6, 2016
Attorney Prolman
That’s correct; Alderman, but you are forgetting the first position. The first mortgage that’s there today is a little
over $4.5 million. So you take $4.5 million plus the $13.5 million which is approaching $18 million. So, $18
million of debt in front of Nashua right now is reduced down to $13 million. The new loan would be $13.5
million. Does that answer that?
Alderman Cookson
Yes.
Alderman Siegel
First of all, I’d like to thank the Mayor’s staff for answering a lot of questions and for Attorney Prolman with
whom | spoke to today. | want to make it clear that the city isn’t giving a loan if 1% over 30 years. If you read
the legislation you would think that this is financial insanity but in fact the city is merely serving as a vessel to
have HUD money shuttled over. Really this is a convenience and frankly it’s a windfall for the city because
anything we get out of this is gravy because we really did nothing except to serve as a paper work entity.
There’s no really good reason not to approve this loan or this legislation that would enable the loan.
Alderman Wilshire
If we did nothing and | am hoping we don’t because | think it’s a good deal, what would be lost in terms of low
income affordable housing units?
Attorney Prolman
Fifty five units. The original agreement between the city, HUD and Clocktower required in exchange for the
HUD grant, 30% of the Clocktower units would be dedicated for low income housing.
Alderman Siegel
Whatever your feelings are about those housing units and | think we don’t want to see them lost, the other part
of it that is very important is that there’s a half of million dollars minimum on the table for the city as a windfall.
We don’t want to lose that either. | would urge us to approve this.
Alderman Cookson
Again on the timing, if everything happens before June 30" and we are able to accept this money and it goes
into the general fund, which fiscal year would it be allocated to?
Mayor Donchess
If we receive the money if FY ’16 then it is in the FY *16 income within the FY °16 year, is that correct Treasurer
Fredette?
Mr. Fredette
Yes.
Alderman Cookson
Even if it’s on the last day of June?
