execute on providing the financing for the NMTC transaction. This debt will take priority over other debt
and be in a superior position.
What is RSA 162-G
RSA 162-G allows the City acting directly or through a voluntary non-profit corporation to foster and
encourage the development of business within its boundaries. RSA 162-G creates a vehicle allowing
municipalities to participate in business activities such as real estate development and financing. The
legislation before you names the specific incorporators who will petition the state to form the non-profit
entities that are integral to the city’s ability to get the NMTC. Lastly, by going through this process the
entities will be afforded certain privileges such as being exempt from taxes.
Additional Context
These two entities are not permanent and are only being created to effectuate the transaction. They will
cease to exist after the seven year NMTC compliance period concludes, which necessitates the need for
entity number “C”, which is not contemplated in R-19-136 and will be brought forward once a NMTC
allocation has been secured. Essentially, entity C in working concept will be substantially similar to the
Hunt Memorial Building Board of Trustees, which is the body empowered by the city to oversee the Hunt
Building. In this case it will be the entity to oversee the building and the service contract of the operator.
Lastly, entity D would not have any affiliation with the City of Nashua directly, but would be a separate
501 ¢.3 entity created to administer the endowment fund to support the Performing Arts Center and can be
thought of as like a “friends” group similar to a “Friends of the Library” group or a “Friends of the Senior
Center” group.
Thank you for your kind attention to this matter. Please do not hesitate to contact me if I can be of any
assistance.
Attachments
Updated Deal Diagram
Letter from Attorney John Kaminski Dated April 17, 2019
Anticipated City Approval Document
