Special Board of Aldermen 11-24-2020 Page 7
The nationwide average right now is $.70 cents, we’ve got $.76. So, we are going to take it and run. So, if
you multiply the $.76 cents times 3.8 you get the $2,889,900,00. That’s cash in at the top of the deal from
the equity investor before we start taking fees out. So, if we look at this number down here, again the
$9,750,00.00, | want to focus at what’s in the shade are first, because that’s the New Market Deal. If we
look at the $9,750,000, b which is what we have been allocated, we have to raise to get $9,750,000.00
down here, which is here, we have to raise $9,998, 750.00 because we got fees to pay for $248,000. So,
the difference between this, this less this equals this over here, the $7 million. So, between a loan from
201 Main Street Financing Corp. which is most cases is a bank but this case because it is municipal
finance, it’s an entity that has been created under 152-G and you guys created it. That loan which is the
portion of your bond goes into the investment fund box. In addition, the $2,889,000.00 goes into that box
and $248,000.00 which is about 2.5% in fees, are taken out. Then they make the Qualified Equity
Investment which is the whole key to this New Market jargon and qualifies us for the deal.
Their investment into a subsidiary of Mascoma Community Development established solely for the
purposes of this deal. Mascoma Community Development is the managing partner of 14, or 15, or 16 or 17
of these sub CDE’s, we call sub-CDE’s. Again, there’s another fee paid to them so the $975 is reduced to
this and they make a loan to, in this case, Impact Corp. which is, go all the way down here. Impact Corp is
an entity that is an affiliate entity of 201 Main Street, which is another 162-G with a separate governance
than the 162-G created up here. So, we now have $9.555 million dollars in Impact Corp. in the form of
loans. Well that’s not going to cover the whole deal is it? That’ not enough, but it’s how we got
$2,446, 150.00 into it, that’s the important thing. How do we finance the balance of the deal, the stuff that’s
outside the gray area? That’s not a good term, “gray area” | should use a different color.
But the way we finance the balance and | think this is the stuff that Celia and John are going to get into
because it involves transactions that you have to authorize. Well, number one) we are going to take $13
million dollars, the balance of the bond, the $21 million dollars less the $7, I’m sorry this number here is
wrong, this is the right number, | don’t know how that happened. $13,891,000.00 which is this plus this
equals $21 million. We are going to take that and we are going to make a grant to 201 Main Street
Corporation, which is the non-profit 162-G entity that you created. At the same time, Nashua Community
Arts is going to donate $1.5 million dollars into 201 Main Street Real Estate Corp. So now, 201 Main Street
is going to have $15,445,000.00 in the bank for a couple of seconds at least. What are they going to do
with it? Number one) they are going to make a capital contribution of $12,995,000.00 the QALICB
Borrower, which is Impact Corp. which owns the building.
So now between this contribution of $12,995 and the $9,555 we have the total, we go up here, total
$22,550 that’s needed to build the building and acquire the land. After 201 Main Street makes that capital
contribution it’s going to have $2,450,000.00 left over. Going back up again, that’s the cost of the
equipment, you see it here, $2,450,000.00. So, Impact, | should say more than just equipment, FF&E,
specialty stuff mostly including seating, by the way, including this portable seating, that 201 Main Street will
purchase and lease to the City of Nashua which is the Master Tenant. And in conjunction with that, which
is sort of outside the deal, the City signs an Operator Agreement with Spectacle Management and has a
Trustee established to oversee the programming and the deals of this agreement.
| think that covers it. Tim, do you want me to take questions now or do | just let you go?
Director Cummings
Thank you, Neil, Madam President if | may, | would suggest that we hold questions until the end. What I’d
like to do is ask Niel to turn off the sharing of his screen so | can share my screen, if | could, Madam
President.
President Wilshire
Sure.
