R-20-094
WHEREAS, R-20-087 authorizing assignment of the Community Development Finance
Authority grant to Nashua Community Arts had its first reading on October 27, 2020;
WHEREAS, the two voluntary corporations have been formed and are 201 Main Street
Real Estate Corp. and 201 Main Street Financing Corp.;
WHEREAS, a New Markets Tax Credit sub-allocation has been made available, subject
to closing, for the Performing Arts Center by Mascoma Community Development, LLC, an
affiliate of Mascoma Bank;
WHEREAS, on October 21, 2020, the City’s Finance Committee approved $80,000 to be
provided for deposits for legal and other costs to Mascoma to allow the New Markets Tax Credit
transaction to proceed;
WHEREAS, the attached chart shows the anticipated structure and flow of funds for the
New Markets Tax Credit transaction;
WHEREAS, the closing date for the New Markets Tax Credit transaction is presently
scheduled to occur on or before December 15, 2020, and time is of the essence;
WHEREAS, the New Markets Tax Credit transaction is intricate and driven by federal
New Markets Tax Credit requirements, investor requirements and other laws and regulations;
WHEREAS, negotiations and details regarding the New Markets Tax Credit transaction
evolve quickly up to and including the day of closing, requiring the City and all other
participants to be able to react and respond quickly to the changes.
NOW, THEREFORE, BE IT RESOLVED by the Board of Aldermen of the City of
Nashua that the City of Nashua is authorized to participate fully and as is required or advisable
to close the New Markets Tax Credit transaction with Mascoma, such actions to include, but not
be limited to the following:
Approval 1: Authorizing the City’s participation in the New Markets Tax Credit transaction
for the Performing Arts Center as shown on the attached flow chart in accordance
with the attached term sheets and upon such other terms as the City may agree.
Approval 2: Authorizing transfer of title to 201 Main Street to 201 Main Street Real Estate
Corp. or acontrolled affiliate thereof, closing to take place contemporaneously
with the New Markets Tax Credit closing.
Approval 3: Authorizing City to enter into lease(s) with 201 Main Street Real Estate Corp. or a
controlled affiliate thereof for 201 Main Street as Master Tenant and for purposes
of equipping the Performing Arts Center.
