Special Bd. of Aldermen — 05/20/2019 Page 10
Mr. Cannon
Thanks Tim for leaving me out here like this. Because we need an entity to make the loan and we don't, the
regulations discourage the City from being that lender. So the City receives bond proceeds of $15 million
dollars. It is going to make a loan to Entity A who is going to pass that through to the investment fund. The
investment fund is going to combine that loan proceeds with equity investment of $4.9 million dollars which is
39% of $15 million at $.85 cents a dollar, to total that up. And then they are going to push that down to the
Sub-CDE in the amount of $15 million after they take out their fees; the Sub-CDE is going to take out their fees
and lend $14,700,000.00 to the bottom entity. The total project cost is $19.2. So the rest of that, the balance of
that, $19.2 minus $14,700,000 is $4.5 and that’s coming down directly to the QALICB.
Mr. Teeboom From the New Market Money?
Mr. Cannon
No from the City of Nashua.
Mr. Teeboom_ Where is that additional $4.5 million coming from then?
Mr. Cannon
$4.5 plus $10,482,500.00 - $4.5 plus $10.5 equals $15 million which is the amount of the bond.
Mr. Teeboom Haven't we already spent quite a bit of money on that bond? Haven’t we already paid for the
building with that bond? How did we buy the building.
Mr. Cummings
Cash.
President Wilshire
Cash.
Mr. Cannon
In this instance your QALICB is going to, with the proceeds of the loan is going to buy the building from the
City, the City is going to receive $2 million dollars.
Mr. Teeboom They are going to get $2 million dollars back OK. Awfully complicated. What is your target for
the New Market Tax Credit, what do you hope to get for the New Market Tax Credits?
Mr. Cummings
We are looking to net $4.2 million, again | just want to caution everyone that these are project modeled
numbers and they are subject to change but that’s what we are currently looking at.
Mr. Teeboom That’s after the 15% fee?
Mr. Cummings
That’s net so that is after the fees.
Mr. Teeboom So you expect to get about $5. Something million.
