Finance Committee - 4/17/2019 Page 14
Alderwoman Kelly
Yes so we had originally talked about the fiscal agency as something that was a stop gap while we were
setting up our 501(c)3, can you talk you about where we are in that process please.
Mr. Cummings
Yes again a great question. So as quickly as possible and we are working through these minor details, they
are minor but they play a major role. They have material effects; so we need to make sure we are doing, we
are doing things appropriately. We would be looking to set up this separate 501(c)3 to take over for what City
Arts Nashua is currently doing anytime now. Hopefully within the next few weeks we can file that paperwork
that would create the non-profit. That non-profit then would have to file for IRS Tax Exempt Status which could
take anywhere around six months. And so what we want to make sure we do though is make sure that we set
up this structure that allows us to proceed in a way that doesn’t prohibit the New Market Tax Credit transaction.
And if anything can help complement it and those are the type of more nuanced conversations that are
occurring.
Attorney Bolton
| believe you will all be seeing in the material you receive on Friday a Resolution to adopt State-enabling
Legislation that will allow for the creation of one or more non-profit corporations by the City and that is the next
step in putting this in motion. So you will be seeing that on Friday for introduction next Tuesday and hopefully
approval at the next Board of Aldermen meeting.
Alderwoman Kelly
| just wanted to clarify something and then I’m going to give the floor. When | asked about the $40,000.00; it
doesn’t matter whether we are raising them through the Tax Credits or we are raising them privately, we will
have to account for the Fiscal Agent fee before we move forward correct ? If we have $40,000.00 less than $4
million then we can’t move forward?
Attorney Bolton
No it’s just an expense. We have to raise a certain amount of money, how we spent that is not controlled in
that Resolution.
Alderwoman Kelly
Thank you.
Mayor Donchess
Now this agreement can be terminated with 60 days’ notice if we don’t like it. But | think, | would reiterate
again there is no City money that will go to City Arts as a result of this contract; no City tax funds. These are
all privately raised funds; 2% would go City Arts Nashua. So if you contribute $5,000.00, $100.00 of those
dollars would go to City Arts Nashua for the service they are providing in enabling you to get a Charitable Tax
Deduction and for holding the funds until the funds are needed.
Alderman Caron
Thank you, so this is a one-time $40,000.00, no more than $40,000.00; doesn’t matter how long it takes, it’s no
more than $40,000.00 that City Arts will get?
