Special Bd. of Aldermen — 05/20/2019 Page 7
Mr. Teeboom Something about transferring the property to $2 million dollar building to one of these
corporations?
Mr. Cannon
One of these corporations, the QALICB, Organization B will purchase the building the building for $2 million
dollars.
Mr. Teeboom How can the City of Nashua by the Master, it will no longer own the buildings.
Mr. Cannon
That’s the point. It will be a tenant of the QALICB.
Mr. Teeboom_ Ok so Nashua is going to be a tenant.
Mr. Cannon
Because it cannot own the building and take advantage of this program.
Mr. Teeboom Ok that’s the lower left, | still don’t quite understand the upper left red.
Mr. Cannon
The upper level becomes the lender. The bond proceeds are passed on to that lender, called the Senior
Leverage Lender and it makes the loan into an investment fund and where it is combined with the equity
investment by the New Market Tax Credits buyers and forced down through a sub-CDE into loans to the
QALICB.
Mr. Teeboom The loans? What loans are we talking about? $2 million dollars is donated apparently to this
loan entity?
Mr. Cannon
There are two loans, one is for $4.2 million dollars, which is the New Market Tax Credit amount and one is for
$10.4 million which is the amount of the bond that goes into Organization A.
Mr. Teeboom Where does that come from?
Mr. Cannon
Bond proceeds.
Mr. Teeboom What, the bond proceeds?
Mr. Cannon
The bond proceeds are $15 million dollars. Of that $10.4, a little more than $10.4, let’s call it $10.5 goes into
the Senior Leverage Lender, which is Organization A.
Mr. Teeboom | thought that Cummings that had written a Memo which | have been hounding him for a long
time where he claimed that the construction funds were $11.5 million. The building has already been paid for.
There’s architectural fees, so you take the $15.5 million dollar bond, you subtract the $2 million dollars already
