Special Bd. of Aldermen — 12/20/2018
PUBLIC COMMENT - None
REMARKS BY THE ALDERMEN - None
ADJOURNMENT
MOTION BY ALDERMAN DOWD TO ADJOURN
MOTION CARRIED
The meeting was declared adjourned at 8:45 p.m.
Attest: Patricia D. Piecuch, City Clerk
Page 23
Special Bd. of Aldermen — 12/20/2018 Page 22
Mr. Cummings
No to be able to move this project forward and actually go to construction, $4 million dollars of private money,
cash, needs to come in to this deal. How we are getting there, in this scenario, as I’ve outlined this equity
investor, for this conversation let’s say it is GE will commit to $7.2 million which we will eventually ultimately
see $5.2 in cash. That is above the $4 million dollar threshold of private money coming in to this deal.
Alderman Jette
Thank you.
Mr. Cummings
Special Bd. of Aldermen — 12/20/2018 Page 21
Alderman Jette
The loans, but you used the ‘s’ again.
Mr. Cannon There are 2 loans, remember there is a Loan A and a Loan B? Loan B is in the amount, the
reason there is two is because Loan A is the amount of the net bond proceeds and Loan B is the amount of the
Tax Credit Equity and at the end of the 7 years, Loan B is forgiven. You still have to pay down Loan A which is
whatever the balance is on the bond at that time.
Alderman Jette
Special Bd. of Aldermen — 12/20/2018 Page 20
Mr. Cannon_ It’s up to you.
Alderwoman Melizzi-Golja
Right but | mean it could go away in 7 years?
Mr. Cannon It could.
Alderwoman Melizzi-Golja
Special Bd. of Aldermen — 12/20/2018 Page 19
Mr. Cummings
Well one | want to make sure the Steering Committee has a full conversation about this process and have
them make a recommendation as to how they would like to see it unfold. | would like to make sure that this
body is comfortable with that and then also the Mayor. | mean those are the 3 big stakeholders that need to
come together to make sure that they are all in agreement with how this is structured.
Attorney Bolton
Special Bd. of Aldermen — 12/20/2018 Page 18
Mr. Cannon Right, right.
Alderman Tencza
Ok just so people are clear about that. And then the other question | have is just about the 7 year compliance
period because | think that it is a little confusing because of the project we are doing, | think people might
interpret that as the project has to be economically viable for 7 years but clearly the library in Keene is not
making money for the town right unless they have excessive overdue fees or something like that.
Special Bd. of Aldermen — 12/20/2018 Page 17
Alderwoman Melizzi-Golja
Special Bd. of Aldermen — 12/20/2018 Page 16
and | am reading the legislation and | am appreciating the wording more here because it is saying that — will let
the bond at such time the Mayor has determined the private funds, including the New Market Tax Credits total
at least $4 million dollars.
So | am interpreting that as saying after we pay the fees we get that $1.52 or whatever it is, and that goes
towards buying down the bond or not. Ok so is that going into this endowment because it is private money.
Special Bd. of Aldermen — 12/20/2018 Page 15
| don’t Know actually, | would have to run the calculations on that. | learned my mistake last time around. An
idea was floated and it sounded reasonable at the time, | would have to go back and look and do my due
diligence and tell you whether that could actually be done or not. | don’t know.
Attorney Bolton
| don’t think advertising that we are just trying to raise money to make the bond payments is the way to raise
money.
President Wilshire
Special Bd. of Aldermen — 12/20/2018 Page 14
Alderman Jette
And one last question if | could, where does the possibility of getting tax credits from Community Development
Finance Authority work into this?
Mr. Cummings
It doesn’t to be very clear. This is a whole separate process, this is a New Market Tax Credit Program. What
you are referencing right now is a State level, CDFA tax credit program and it is completely separate initiative
and strategy that will be undertaken above and beyond this.
Alderman Jette
