was conceived in order to address a significant shortage of health care
services — particularly for low and moderate income residents - of a 12
town region. it was funded by several sources, including an NAATC
allocation from Coastal Enterprises/CCML, a Community Development
Block Grant (CDBG) that was passed through the NMTC leverage mode,
and a Leverage Loan from a consortium of three local banks. Most
significantly, these banks also served as equity investors and purchased
the NMTC’s for the project.
Mr. Cannon worked on all aspects of the deal, including conceptual
planning, deal structuring, financtal projections, closing, and construction.
The project has been closed out and project tenant (Mid State Health
Center) purchased the building for a discounted price {e.g. balance of
bank debt) in 2013. This wos the first NMTC — assisted reaf estate
development project in New Hampshire.
Littleton Food Cooperative ($6,800,000). The LFC was committed to
utilizing NMTC in order to finance an expansion of its facility. However,
Staff leadership and an all-volunteer Board of Directors was having
difficulty grasping the intricacies of the deal. At the Suggestion of the
CDE (Mascoma Community Development} the LFC retained Mr. Cannon
to assist in structuring the financing and addressing some key unresolved
issues, including:
© The need to refinance an existing first mortgage. Mr. Cannon
was able te convince Leverage Lender to include pay-off of first
mortgage as project cost, subject to additional sub-debt (see
below).
© The need for additional debt due to LTV concerns. Due to a low
appraised value, Leverage Lender could not finance 100% of the
required loan amount. Mr. Cannon organized three non-
traditional lenders (NH Community Loan Fund, Grafton County
Economic Development Corp., and NH Charitable Fund) to provide
$1,000,000 jn subordinated debt via the Leverage Lender.
oO The avoidance of COD tax liability upon completion of the 7 year
compliance term and “forgiveness” of NMTC debt. Mr. Cannon
worked with tax counsel to structure a deal that minimizes LFC tax
liability at wind-down.
The project closed in 2016 and construction is complete.
