Special Bd. of Aldermen — 05/20/2019 Page 6
Mr. Cummings
So if | may Madam President, that’s actually a great segway to just call your attention to the communication
that was in the agenda where Attorney Leonard put together an additional document that kind of outlines; and
this was done at this body’s request at our December 20" meeting. You wanted to get a high level overview
and by no means is this 100% it is subject to change, but it gives you an idea of the various approvals that will
still be forthcoming by the body to effectuate the transaction that we are working toward. The goal that | would
like to work towards is to try to get these all bundled into one document so we can have one conversation later
on this summer to make it as expedient as possible. But nonetheless these are the various differing elements
that are still going to be necessary to move this forward. We are here this evening really to once again show
the CDE’s that we are very serious about this project and that we are doing everything we can to put the best
foot forward.
Alderman Tencza
Can | just ask the two non-profits that we are talking about tonight, the two that are up there in red, will they
have any relevance after this conversation on New Market Credit Tax Credits after the 7 year period or we will
be essentially be able to get rid of those? Then the two that will stand are entities C and D that you have on
the right side of your graph?
Mr. Cummings
That’s correct, you are understanding the graph appropriately.
Alderman Tencza
Ok. If | could just clarify maybe, so these two that we are setting up, are really just kind of pass-through non-
profits for the purpose of accepting the money or in accepting the bond proceeds to therefore transfer into the
project and then have the project up and running. Then the rest will then be managed by the two non-profits
that are left?
Mr. Cummings
Correct.
Testimony in Favor
Fred Teeboom | think | am the only member here tonight and you’ve got a two hour meeting scheduled so
we'll take a little bit of time. My name is Fred Teeboom and | live at 24 Cheyenne Drive in Nashua. | have a
few questions and I'll make some comments and I’m done. |’m glad you put the deal diagram Mr. Cummings
and I’m trying to figure out first of all the need for two non-profits. Now the left on top collects the money and
the bottom operates the venture? Could you explain again what these two red positions mean?
Mr. Cummings
Thank you Madam President, | am actually going to defer to Niel Cannon on this.
Niel Cannon, the city’s Finance and Development Consultant,
Yes you need two organizations as we said earlier, two different governing bodies not directly overlapping
because you can’t, number one, you can’t have organization A lending to itself. And number two, the City
cannot own, under the Statutes, cannot be the beneficiary of the project except indirectly. So you need
Organization A which is not identical to B to make the loan; then you need Organization B which is not identical
to A to receive the proceeds of the loans and execute a Master Lease with the City of Nashua.
