S\\ THE CITY OF NASHUA
Economic Development Division
"The Gate City”
Memo: Lori Wilshire, President
Ce: Board of Aldermen
From: Tim Cummings, Economic Development Director
Date: November/2018
RE: Amendment to R-18-001
Purpose
We have worked diligently and methodically over the last nine (9) months since the bond was
first authorized and during that time we have learned a great deal. The purpose of the amendment
is to bring the current resolution up to date.
Amendment
The amendment allows for the designing of the Performing Arts Center (“PAC”) to occur prior
to the $4M in private funds being raised. The amendment further goes on to make explicit that
“New Market Tax Credits” will be one of the sources of private funds and provides greater
flexibility on how the funds can be used, i.e. endowment fund, capital costs or reduce the bond.
Background
This amendment is before the Board of Aldermen in an effort to keep the bond authorization
germane and accurate since its passing. Over the last year further planning on the Performing Arts
Center has brought about a few major new developments.
First, we are currently working with a private sector 3™ party operator to manage and run the
Performing Arts Center. This development makes the idea of setting aside $4M dollars into an
endowment unnecessary. Setting aside some money as an operating reserve (endowment) makes
sense and is recommended, but is not a prudent use of the limited funds at this time. It will be a
goal to have an endowment fund capitalized, but less than $4M.
Second, we brought on our New Market Tax Credit (“NMTC”) Consultant (and our General
Fundraiser) well after the bond authorization occurred and it was only after we received their
counsel that it became apparent that we would need access to bond proceeds in advance of
construction to design the project, which in turn assist us in bringing in the private sector funds.
>» To Be Explicitly Clear: As originally outlined there will be at least $4M of private funds
brought to this project and we have a goal of $6.5M of private funds to be raised for the
project in its entirety.
