Finance Committee - 4/17/2019 Page 13
Alderwoman Kelly
Ok so a couple of questions. The first question is if they were not intending to charge us a fiscal agent fee
originally does that mean what we currently have is not subject to this 2% fee?
Mr. Cummings
It was never their intention to not charge us a fiscal agent fee.
Alderwoman Kelly
So everything will be subject to this?
Mr. Cummings
Yes but capped at $40,000.00.
Alderwoman Kelly
Capped at $40,000.00. Question around $40,000.00 does that then mean that we have to raise $4,040,000.00
before we can move anything?
Mr. Cummings
You are not obligated to raise $4 million dollars out of this particular entity; in fact | don’t think you would
actually raise $4 million dollars out of this entity and what has been told to this body on a couple of occasions
is somewhere around $2 to $2.5 million is more realistic.
Mayor Donchess
So the New Market Tax Credit funds, if they are successfully obtained, so not flow through this. Those come
directly to the City. The money that would go in here are people who write checks for the benefit of the
Performing Arts Center. And they way that the Resolution reads at this point is that as long as the City brings
in $4 million dollars, including New Market Tax Credits; the project can proceed.
Alderman Kelly
Ok so then my question is do we have a separate fund where those New Market Tax Credit are going to, is ita
trust fund, what’s that?
Mr. Cummings
That’s a great question and one that we are working on; part of the reason why we are procuring this New
Market Tax Credit Attorney to help us set up those types of structures so we can actually do this and do
exactly what you are talking about which would be to set up another entity that would actually receive the funds
and actually, if you will, manage the project.
Mayor Donchess
The New Market Tax Credit Transaction is complicated, you know anybody who does that needs legal and
consulting help. That is a separate issue from this. The money going to City Arts Nashua are the people who
write private checks. So if you have written a check for the benefit of the Performing Arts Center that money
has gone to City Arts Nashua and is held in their 501(c)3 account and that’s what this has to do with. So if we
want tax deductibility for the contributors, we need a 501(c)3. The City Arts Nashua is providing that and for
that benefit they are charging 2% to the people really who make the contributions.
