Nashua Performing Arts Center — NMTC Term Sheet Confidential
October 14, 2020
mutually agreed upon by the Managing Member and the Investor Member. |
QALICR
QALICB/Borrower | The Project consists of the acquisition, renovation and development of existing
Description: improvements located at 201 Main Street in the City of Nashua, New
Hampshire. The improvements at the Project shall be owned by Borrower and
shall be leased to Project Sponsor for use as a performing arts center and multi-
purpose community facility. It is anticipated that the Project Sponsor shall enter
into an operating agreement or sublease with a performing arts operator (the
“Project Operator”).
The total cost for the Project, including, without limitation, soft costs, reserves
and contingency, is estimated to be approximately $24,924,430.
QALICB Status: The business operations of Borrower will constitute a QALICB for purposes of
the NMTC program. Borrower is reasonably expected to maintain its QALICB
status, based on the Basic Conditions to the QLICI Loan Documentation
(outlined below), among other requirements, as prescribed under Section 45D of
the Code,
The covenants of the QLICE Loan Documentation will require Borrower to
retain eligibility as a QALICB for so tong as any QLICI remains unpaid. Loss
of QALICB status shall constitute an event of default and a due on demand
clause shall be enforced, whereby any recovered proceeds shall be redeployed,
subject to the provisions described under the Sub-CDE operating agreement.
QLICI Notes & The following notes and terms are anticipated for the QLICIs (collectively, the
Terms: “QLICI Loans”) to be made by Sub-CDE to Borrower:
Amount: Aggregate principal amount of $9,555,000.
Use of Funds: Generally for the development, rehabilitation and reuse of the
improvements at the Property; provided, that the use of the proceeds of the
QLICI Loans is subject in all events to the NMTC program requirements,
including without limitation, MCD’s NMTC allocation agreement. The QLICIE
Loans are to be term loans in nature and not structured as revolving working
capital lines of credit.
Maturity: Both Note A and Note B are expected to have a term of at least thirty
(30) years.
Interest Rate: The interest rate on the OLICI Loans will be blended based upon
the interest rate on the Fund Loan and management and other fees paid through
interest; however, each QLICI must either: (2) have an interest rate that is at
least 50 percent below market; or (2) otherwise satisfies at least five indicia of
flexible or non-traditional rates and terms, as outlined in Allocatee's NMTC
allocation application. For purposes of this measurement, any QLICI that is
subordinate to another secured creditor shall be compared to the market rate of
subordinated debt.
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