LEGISLATIVE YEAR 2020
RESOLUTION: R-20-071
PURPOSE: Authorizing the Mayor and City Treasurer to issue bonds not to
exceed the amount of eight million dollars ($8,000,000) for two
construction projects. The first being the construction of a publicly
accessible ground level parking garage to a proposed 146 unit
multi-family apartment project on a city owned parking lot, which
would include an area for parking 48-50 spaces. The second being
additional funding for the performance arts center. The new total
amount needed for the performance arts center project will now be
twenty one million dollars ($21,000,000) - R-18-001 authorized
$15,500,000 and this current resolution R-20-070 authorizes
$5,500,000.
SPONSOR(S): Mayor Jim Donchess
COMMITTEE
ASSIGNMENT:
FISCAL NOTE: It is anticipated that the bond would be sold in FY 21/22 for a term
of twenty five years. It is estimated the interest rate will be
approximately 2.5% (TAXABLE) and the total cost of the bond
will be approximately $10,664,225 including interest-level debt.
The average annual payment will be approximately $426,569.
At this time it is undeterminable if the TIF district will have
sufficient funds to cover the first 2 years of bond payments related
to the PAC. It is also anticipated the full or a portion of the
revenue derived from the sale of the air rights for the new
apartments building may be available for these projects in
anticipation of a supplemental appropriation request.
ANALYSIS
This resolution authorizes the City to issue and sell general obligation bonds up to $8,000,000
for the Parking Garage and Performance Art Center (PAC) The garage has not been through the
most recent Capital Improvements Program but it is scheduled for a meeting in September 2020.
Funding for this bond will be generated through a new proposed Tax Increment Financing
District (TIF). Pursuant to Nashua City Charter §54-a, this resolution requires a “duly advertised
public hearing”. Also see NH RSA 33:9, which requires a 2/3 vote of all the members for
passage of this resolution.
