Special Bd. of Aldermen — 12/20/2018 Page 13
Alderman Jette
Ok thank you. To the right of the Investment Fund, there’s another number there in that top box.
Mr. Cannon Yes that is $6.132750 which is .39% of the $18.5 and the $18.5 is the qualified equity investment
which you see right there, that’s 18.5. So 39% of that is that number, I’m sorry, that number the $7.2 that is the
amount of credits. And 85% of this is the $6.1 which is the cash equity injected into the fund.
Alderman Jette
And does the City have any liability for that $7 million?
Mr. Cannon No.
Alderman Jette
No.
Mr. Cannon No.
Alderman Jette
Ok.
Mr. Cannon The City is not the borrower, it’s a tenant.
Alderman Jette
Down at the bottom to the right City of Nashua, going back the other way — lease payments. Just for
clarification my understanding is that the operator Spectacle is not going to pay us anything?
Mr. Cannon Yes that is correct.
Alderman Jette
So where do the lease payments come from that we are going to pay back.
Mr. Cannon From the tax payers of City of Nashua who have to pay off that bond. You are just going to circle
down and come back up again. That’s what makes this a really strong project. Remember the video we saw
and he kept talking about “be open and honest and show your financial statements”. The lender here is the
City of Nashua — one step away. This deal, okay I'll show you the City of Nashua’s books and the credit rating
and everything else, what else do you want? It’s as simple as that.
Alderman Jette
So the lease payments that the City would be paying back up are equivalent to the payments that the City
would be making on the bond without all of this?
Mr. Cannon Exactly, exactly. That is why the City has to be the Master Tenant.
