Niel Cannon
Finance & Development Consultant
nielcannon 1 6@gmail.com
MEMORANDUM
DATE: September 20, 2018
TO: Tim Cummings
Director of Economic Development
FROM: Niel Cannon, Consultant
RE: New Markets Tax Credit Financing for Performing Arts Center
ee
The purpose of this memorandum is to bring you up-to-date on efforts to obtain
NMTC financing for the proposed Performing Arts Center (“PAC”).
1. Budget and Deal Structure. We have developed a budget and deal
structure that is: (a) consistent with estimated construction costs
referenced in the feasibility study; and (b) will allow us to maximize the
NMTC program for the Performing Arts Center’s benefit. Currently, we are
projecting approximately $5.4 million in New Market Tax Credit equity,
which will translate into approximately $4.0M in private sector investment
(i.e. “cash”) for the project.
2. Securing a Sub Allocation of NMTC’s. We have contacted several
Community Development Entities (“CDEs”) regarding the possibility of
obtaining a NMTC sub-allocation in the amount of approximately
$16,575,000. While there is some interest, especially from Mascoma
Community Development, most CDEs have a sufficient backlog to fill their
current NMTC allocations from the U.S. Treasury. Certainly, some projects
will fall by the wayside. This will improve our chances of obtaining access
to current allocations. However, it is most likely that we will not receive a
commitment from one or more CDEs until after the next round of
allocations is awarded in February 2019.
