Finance Committee - 4/17/2019 Page 16
Mayor Donchess
Well once we establish a separate 501(c)3 money could go there and wouldn't go to the ... so even private
contributions would go to that entity and not to City Arts. So only with respect to money that goes to City Arts
while they are performing 501(c)3 services go to them. So if the bulk of the money comes in through the other
501(c)3, they would get very little.
Alderman Caron
Thank you for clarification.
Alderman Klee
That is kind of what | was going to clarify also. But on the opposite end, if this does take a long time for us to
get a 501c and suddenly somebody dropped an extraordinary amount of money, which probably won’t ever
happen but if it did, we would not go over the $40,000.00 and that’s kind of what this contract is.
Mayor Donchess
If someone gave $10,000,000.00 we still pay $40,000.00 total.
Alderman Klee
Right and if we’ve already been collecting up to that point it would be even less on that $10 million dollars so
that’s the bottom line but we do hope — once this gets approved and so on how long do we know, | had heard 6
months to a year it could take to get a 501(c) depending upon the IRS’ time and availability. Do we have any
clue or idea as to what we think, realistically?
Mr. Cummings
So if | may Mr. Mayor, | am going to say that we are creating a structure that is going to be as clean and as
putting ourselves in the best position possible so we achieve that designation as quickly as possible so | can’t
speak for what the timeline would be for the IRS. But we are doing in a way so whatever that is, it’s on the 6
month side of things not the year side of things, which was part of the issues that we were working through
relative to the New Market Tax Credit.
Alderman Klee
But it may not happen until after the money needs to be gotten sort to speak and we could possibly stay with
City Arts to that February/March date, but thank you.
MOTION CARRIED
From: Tim Cummings, Economic Development Director
Re: Notice of Change in Contract for Residential Brokerage Services with Louise Brochu
There being no objection, Mayor Donchess accepted the communication and placed it on file.
From: Tim Cummings, Economic Development Director
Re: Memorandum of Agreement with Spectacle Management
Alderwoman Kelly
| can move to accept the communication and place it on file but | would like to point out that | did not see the
MOA attached.
