Finance Committee - 4/17/2019 Page 10
Performing Arts Center project. That is the same funds that we used to pay for the professional fund raising
consultant and the New Market Tax Credit consultant. So anyway | wanted to provide you that additional
information and ask that you support this. It is extremely important that we get this outside legal service’s
opinion or consultation to help us advance this project. We've done this in collaboration with our Corporation
Counsel’s office, Attorney Bolton has been working with me through this initiative. We requested three
proposals from very experienced New Market Tax Credit attorneys and John Kaminski of Drummond
Woodsum is the one we are recommending.
Alderman Harriott-Gathright
| have a question for Director Cummings, you said that the value was $56,500.00 but yet you think they are
only going to use about $5,000.00, did | get that correct? But you also say there were three different
attorneys?
Mr. Cummings
Yes if | may Mr. Mayor, so we solicited proposals from three different firms and the one that we’ve chosen has
outlined a two-phased type contract where the first phase all we are obligating ourselves to is approximately
$5,000.00. And that is all we are obligating ourselves to because if we are not successful in obtaining that
New Market Tax Credit which would pay for the balance of this contract; there is no expectation that we would
have to pay the attorney.
Steve Bolton, Corporation Counsel
| want to make one disclosure so it’s clear. Celia Leonard, the Deputy Corporation Counsel is in fact married
to a lawyer at this firm. That played no role in the selection of this firm; we excluded Celia from the selection of
the firm. But Tim and | agreed that John Kaminski had the best presentation of the lawyers we talked to. He
understood what was involved and what we would be facing and he was very reasonable in structuring the
contract as Tim just explained to minimize our expense and our exposure to expenses up front if we don’t
obtain the allocation of New Market Tax Credits. So if a project doesn’t go forward because those aren’t
obtained, the expense of these legal services will be minimized. Celia will be working on the project but she
was as surprised as anyone when | told her that it would be her husband’s firm. So just to let you know.
Alderman Klee
Thank you Mr. Mayor. Director Cummings | just want to make sure that | do understand this correctly; you said
a two-phase, $5,000.00. So the $5,000.00 will be paid out of what fund?
Mr. Cummings
The consulting budget if you will or the consulting account that the Downtown Improvement Committee
approved that is run through the office of Economic Development.
Alderman Klee
So that $5,000.00 will be paid out of that and the $51,000.00 if we did secure the Credits and so on will be paid
out of the New Market Tax Credit Fund and so on. And | just want to make sure | have this correct; they are in
fact going to help us secure these New Market Tax Credits and this is different than the New Market Tax Credit
that we hired to do the application and so on. Those are two separate entities correct?
Mr. Cummings
Yes, Mr. Mayor if | may, yes two separate entities, and the legal counsel will play a supportive role to help us
secure the New Market Tax Credit. The bulk of that work would be done by the New Market Tax Credit
Consultant that we already have on board. If you look at the scope of services | think it is tasks like 1 through
