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  2. Finance Committee - Agenda - 5/16/2018 - P83

Finance Committee - Agenda - 5/16/2018 - P83

By dnadmin on Mon, 11/07/2022 - 11:39
Document Date
Wed, 05/16/2018 - 00:00
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 05/16/2018 - 00:00
Page Number
83
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__051620…

These conferences will be expanded to include NMTC counsel at the appropriate
time.

More specific tasks include the following:

© Initially, the Consultant will focus on the creation of 2 project profile. This
document, which will become the basis for “selling* the project to
potential CDE’s, will focus on the following elements:

o Acompelling narrative that focuses on the need for the project,
its economic and community impacts, and its consistency with
NMITC program goals.

© Adeal structure, including detailed budget, flow of funds diagram,
financial assumptions, debt service calculation, and cash flow/DSC
projections. In accomplishing this task the Consultant will utilize a
financial model that he has developed and uses successfully over
several years.

This profile will be circulated to several CDE’s, including, at a minimum,
Mascoma Community Development ($23,000,000 in unallocated credits),
Citibank (new allocation of $65,000,000) and Massachusetts Housing
Investment Corp. (new allocation of $65,000,000). Follow up calls and
visits will be made to key contacts in these organizations and the profile
will be expanded to include discussion of project consistency with CDE’s
mission-specific objectives.

The project profile will also be circulated to US Bank CDC, which, in
addition to being the largest investor in credits, recently received a
$70,000,000 NMTC allocation.

® Ongoing modifications to the deal structure/model as financing details
emerge.

® Identification/formation of NMITC entities:

oO The Leverage Lender. This entity would receive bond proceeds
from City and lend them through the NMTC structure via an
Investment Fund ("IF”]. It would also collect Payments of interest
and principal from the IF.

& The Borrower/applicant entity (“Qualified Area Low income
Community Business” or “QALICB*). Ideally, this borrower would
be a non-profit entity in order to avoid COD tax fability. Further,

Page Image
Finance Committee - Agenda - 5/16/2018 - P83

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