Finance Committee - 6/20/2018 Page 6
NEW BUSINESS — RESOLUTIONS
R-18-042
Endorser: Mayor Jim Donchess
AUTHORIZING THE CITY OF NASHUA TO ENTER INTO A LEASE AGREEMENT WITH LIQUID
THERAPY, LLC FOR 14 COURT STREET, UNIT B.
Mayor Donchess
And Mr. Vayo is here to discuss this | believe, so why don’t you come up? This is on a referral from the Board
of Aldermen. Could you, Mr. Vayo please explain the proposal?
James Vayo, Downtown Specialist & OED Program Coordinator
Absolutely, thank you Mayor for the time and thank you Aldermen for giving me some time to explain this
project and this resolution before you. About six months ago | was approached by Stan Tremblay and Jason
Palmer, two individuals that know Nashua, one a resident, looking for space in Nashua that they could lease to
start a brewery. Director Cummings and myself met with them and toured a couple spaces and after some
time together discussing various sites, 14 Court Street was mentioned in conversation. We went to go look at
the space; they absolutely loved the space and wanted to be able to rent it.
In further discussion with Director Cummings and at the direction of Director Cummings, we looked at ways
that we could use our revolving loan fund to help them get this space into a condition where they could
habituate it. There are many things about the space that don’t meet the requirements for leasing it out. Over
the last six months, | have been meeting with them regularly to review their business plan, to review fit up plan
for the space and review a budget. They basically have come in at about $100,000.00, $125,000.00 in fit up of
the space. Through our loan fund that we manage, we are going to be able to give them a loan to make these
improvements to the space so they can occupy it.
As part of that overall process, one of the things that we came to terms with them about is that if you are willing
to make this investment and do this work, we can lend you the money, we would give you a break for a period
of time on the lease until the loan is paid back basically. And then you would pay regular rent. This is a really
good strategy for occupying this space because it takes an otherwise dead and vacant and unproductive space
that the City owns and manages and puts it in the control of a third party that has a vested interest in keeping
the space up to code and occupied and pleasant looking. Also, it also is a midterm investment to revenue that
the City will see. Starting in year 5 they will pay, | don’t have the numbers directly in front of me, but
approximately $30,000.00 a year. That amount of money will grow by year 10 to $37,000.00.
| think this is a good investment for the City and | am happy that it has gone through the process of vetting.
One other thing to note is Liquid Therapy is also working with Regional Economic Development Corp which is
our Region’s Economic Development Corporation. They also have a loan fund and have joined in with the City
of Nashua in lending them money for their equipment. So they are taking a position on their equipment and we
are taking a position on the building and those two things together are giving them the capital they need to
open their doors to the public. And so what | am hoping will happen is in early July we will be able to finalize
the lease with Liquid Therapy, they will begin construction and sometime at the end of August they will open
their doors and we will all be able to have a celebratory libation at Court Street.
Mayor Donchess
To be clear, this is the space in a fire station where the bays where the fire trucks used to be housed. Not only
the trucks but the wagons, right?
