Minutes

producers, staffing, promotions, scheduling, etc. This operator would
likely pay a token rent to the City and be entitled to all profits earned
(if any). It is essential that this operator be experienced and present
a business plan and budget, i.e. a pro forma that is acceptable to City
staff, the Steering Committee, and the CDE. This business plan and
budget may require an annual payment from the endowment fund.
The NMTC investor will be particularly interested in this business plan

3. Timing/Scheduling. Provided we implement the “next steps” outlined
below, the most likely scenario is that the City receives a conditional
commitment of a sub-allocation in May/June of 2019. This would allow for
a financial closing and commencement of construction in the fall of 2019.

4. Next Steps. Here are the most critical steps that the City must take in order
to meet the ultimate objective of a construction start in the fall of 2019.

Niel Cannon
Finance & Development Consultant
nielcannon 1 6@gmail.com

MEMORANDUM

DATE: September 20, 2018

TO: Tim Cummings
Director of Economic Development

FROM: Niel Cannon, Consultant

RE: New Markets Tax Credit Financing for Performing Arts Center

ee

The purpose of this memorandum is to bring you up-to-date on efforts to obtain
NMTC financing for the proposed Performing Arts Center (“PAC”).

“That it attracts singer/songwriters, has sell out shows, and has valet parking.”

“That there is space for an art gallery.”

“That it opens with a live music festival in downtown, headlined by Ray LaMontagne, and
emceed by Mike O'Malley.”

Pudi Carcle Consulfinelwwwotullcirclenh.com ] celta A

community. Three such people expressed interest in serving on the committee. While
this is positive, more are needed.

Recommendation: Recruit three to five additional campaign committee members
between now and November. A strong campaign committee is critical to the success of a
campaign.

ORGANIZATIONAL FUNDRAISING CAPACITY

e Create a website and/or social media accounts to provide updates on planning and
implementation of the efforts to secure private sector funding, including the work
done to date.

e Finalize business planning and publicize within the community

e As plans evolve, communicate promptly via website and/or social media platforms

e Place signage and window displays at 201 Main Street that announce a Performing
Arts Center will open in 2020.

e Remove the Alec's Shoes sign from 201 Main St.

RECOMMENDED CAPITAL CAMPAIGN GOAL

eho t

The refrain “this has to be done right” was repeated in interviews. “Done right” meant
things as different as the comfort of the seating to the types of acts the Center will attract.
But the general feeling is a distrust that the City can manage the project successfully.

Recommendation:

e Enthusiasm for the project will increase when its face is an independent nonprofit,
rather than the City. As soon as is possible, have volunteers and the nonprofit be
drivers of the project rather than the City.

3. The location is not appropriate. Outside of downtown would have allowed for a larger
venue to be built. Parking is not available downtown.
4. The City is not capable of doing it right.

5. Downtown is not worth investing in.

6. The City has lost the momentum and enthusiasm it had for this project right after the
bond vote.

CONCERNS

In terms of concerns about the project, two themes rose immediately to the top during
the interview process:

1. There is a deep distrust of the City’s ability to manage this project.

RECOMMENDATIONS

Eighty-three percent of those interviewed support the project and believe or strongly
hope that it will succeed. This is a positive indicator of success for a campaign.

The case for support brochure and documents were received positively by almost all of
those interviewed; many commented that they were compelling. Overall, interviewees
agreed that the case for support as presented is a strong piece of marketing collateral for
the project.

WHAT INTERVIEWEES LIKE

Capital Campaign Committee

The campaign committee is being formed now. It will begin to meet twice monthly in mid-
October. Its first task will be to identify lead prospective donors, identify who is the best
member of the committee to approach them for a gift, and identify what about the
project is likely to be of highest interest to them. Solicitation visits will then commence
and continue until the projected 14 leadership gifts are secured. As noted above, the
leadership gift phase is critical to a campaign’s success.