Special Bd. of Aldermen — 05/20/2019 Page 3
These entities will terminate after the compliance period ends for the New Market Tax Credit and they are not
permanent. But they are essentially needed to effectuated the New Market Tax Credit transaction that we’ve
been discussing for a while now. What I’ve shown you and what has been developed by our consultants is a
tried and true deal structure that has been vetted by CDE’s and this is a very consistent way of putting these
deals together. This is just a higher level overview of the same deal structure that | had put together to help
put this document together.
So with that Madam President I’d like to turn it back to you. | just wanted to give you a brief overview of the
Resolution that’s before you this evening.
President Wilshire
Thank you Director Cummings. Does anyone here have questions?
Alderman Jette
| noticed in the Resolution there’s a proposed initial membership of the Board of Directors and it is a lot of the
same people that are on the same, on both Boards, but not all of them. Is there a reason for that?
Mr. Cummings
Yes I'll actually have our tax counsel speak to that.
Attorney John S. Kaminski of Drummond Woodsum
It’s important for New Market’s Tax Credit purposes that the two entities not have a common majority control.
So we’ve got 5 member boards on both of these corporations; two people overlap, three do not. Just so that
we don’t have a common majority control, that’s what the tax opinion writers are going to be looking for when
we do the transaction.
Alderman Jette
Thank you.
President Wilshire
When we speak, could we please give our names so that the transcriptionist knows, that was John Kaminski.
Alderman Laws
How excited am | right now about this process.
Mr. Cummings
So if | may Madam Chair. We don’t know but | did receive an article today where the US Treasury is quoted as
saying they are going to be looking to make announcements in the month of May. So sometime in the next
two weeks, fingers crossed, we will hear. But just because an announced is made by no means is that a
guarantee that we are going to be receiving an allocation. But we are working very closely with handful of
CDE’s and we remain very hopeful.
Alderman Laws
Just to clarify, if we don’t get these, the whole project dies?
