Special Bd. of Aldermen — 12/20/2018 Page 16
and | am reading the legislation and | am appreciating the wording more here because it is saying that — will let
the bond at such time the Mayor has determined the private funds, including the New Market Tax Credits total
at least $4 million dollars.
So | am interpreting that as saying after we pay the fees we get that $1.52 or whatever it is, and that goes
towards buying down the bond or not. Ok so is that going into this endowment because it is private money.
Mr. Cummings
| just want to clarify, when you say “endowment” you are talking about the original concept?
Alderwoman Melizzi-Golja
Right.
Mr. Cummings
If | may.
Alderwoman Melizzi-Golja
And that’s where ... excuse me, that’s where | need the clarification because we have been talking non-profit
for so long meaning the endowment and now we are talking a totally different kind of non-profit entity that is
going to hold the lease on this building that we will be paying for the building through our tax dollars.
Mr. Cummings
If | may? Thank you. So you are absolutely correct and | am going to .. so this is evolving right? Sol am
going to need direction from the Steering Committee and from you all as to how you would like this to be
structured but essentially what you are talking about is what we will refer to here is Entity A. We have originally
always been talking about it being a non-profit, technically it could be an LLC and more to come, but yes there
will be an Entity A and for this conversation we will say it is a non-profit. And then it will be closely aligned with
this entity right here, which again we will call a non-profit but that will be Non-Profit B or Entity B. They will be
independent but very closely aligned with one another. We will need to have agreements with all of these
organizations, keep in the back of your mind, there’s talk about a list of resolutions that is going to be another
document that we are going to need approval to enter into is that.
Then a third non-profit over here, yet to be created, that will have in theory $2.5 million dollars if you will from
the private sector or $2.5 million of bond proceeds here could go down into that box here, doesn’t go through
the system. We could capitalize that endowment fund at a certain figure; originally we were anticipating $4
million dollars, | don’t think that is necessary. My opinion on this has evolved to somewhere around $2 million
is all that is necessary. So if you wanted to capitalize an endowment of $2 million over here and then that, now
this is what might be interesting to see evolve and | don’t necessarily think we should get into this conversation
this evening, but it is an idea | want to float to you.
The Master Tenant then would sub-lease to that non-profit and then that non-profit would then lease to
Spectacle Management and then that non-profit would have that, for this conversation, $2 million dollars. You
could have an orderly flow if you wanted to. If you didn’t want to do that and you wanted to do it another way,
we can absolutely do it that way and you can have a direct relationship as well. But hopefully | am answering
you questions, you are going to need at least 3 additional entities, one of those e entities won’t actually have
anything to do with this system other than originally when we conceived this project we knew we wanted to
have some sort of endowment fund or reserve for the project.
