Special Bd. of Aldermen — 12/20/2018 Page 17
Alderwoman Melizzi-Golja
Yeah thank you and I’m sorry if | added to everyone’s confusion but | was counting non-profits and where the
arrows were going and I’m like — wait the definition has evolved. So | guess just clarify for me that $5.2 and |
understand that private money so | understand how that is being captured and how that is reflected in the
legislation we just passed. So where is that going and again is that being used in any way to reduce that
because at one point and | don’t see it up and |’m sorry my eyes are tired.
You had talked about $12.something and it seemed to me like we got there by taking that $5.2 from something,
I’m sorry.
Mr. Cannon That’s ok. When we decided that the current estimate project cost is the $18.130 ok in order to
get that down to the bottom, the other, the fixed number here was $18.5 we are not going to go above $18.5 in
terms of a QE! because we want to be competitive. So in getting up to the top here we had to push $18.5, net
$18,130 and pay the fees so we knew what we had to raise here, $19,060 — now when we take the fees off
we've got the $18.5. We know that what the credits are going to be on the $18.5 and the difference between
this and the $18.5 just happens to be the $12. That’s where it comes from, so yes, we are reducing the bond
from $15.5 to $12.something. And we are paying for a bigger project.
Alderwoman Melizzi-Golja
And Mr. Cannon, the reason | wanted that clarified is because very early on and certainly all of understand that
our knowledge of all of this has grown and will continue to grow and evolve. There was conversation about the
New Market Tax Credit being used to reduce the bond. So that’s the question I’ve had sent to me. Ok if it is
going into that third endowment or that third non-profit that Director Cummings was talking about then is it
impacting the bond?
Mr. Cannon It is not going into a third endowment, it is reducing the bond from $15.5 to $12.something.
Alderwoman Melizzi-Golja
That is what | wanted to be clear, because that is what people originally understood, but when we did this
piece of legislation last week there were concerns that it wasn’t going where it is going so | wanted to clarify
that. Thank you.
Alderman Tencza
So the $18.5, the QEI that are up there, that figure is based more on what you are looking for for the New
Market Tax Credit and not necessarily any quote that you have about construction costs for the project right
now, correct
Mr. Cannon If you did the math, that QEI it is almost $18.7 but we decided we did not want to go there.
Alderman Tencza
Ok but | guess my point is you got to the $18.5 not because a contractor or someone has told you these are
what the construction costs are going to be?
Mr. Cannon Exactly.
Alderman Tencza
That was just more based on what you thought you could get?
