Special Board of Aldermen 09-28-2020 Page 13
direction and | think we are at the top of the hill now and | think we should really be pleased with how we
are doing.
So to answer your question specifically about New Market Tax Credits, you are absolutely correct, we were
originally looking at a $4 million dollar type of New Market Tax Credit. The world was a lot different two
years ago. The market has changed substantially. We are, | think, very fortunate to be able to have the
New Market Tax Credit in hand that we do have. And so it is my recommendation to proceed. Ultimately
costs are going to continue to go up and so if we wait, all we are gong to do is see the project cost continue
to go up on the other end and we’d be chasing our tail to some degree. This was a comment | made
actually months ago to Alderman Ben Clemons, he and | had this kind of exchange. We are talking about
10% and at the end of the day, typically construction costs can increase year over year by something of
10%. So you know, it would really not be wise to do and if we want to do this project, we should do it now.
Alderman Lopez
OK so just to make sure that I’m clear in what your response was, my impression is by people like me
being demure and saying there’s no way something is going to happen and there’s no way you are going to
raise the money. Not only did you raise the New Market Tax Credit money, you have the ability and there
is the opportunity, this is to further donate to that and (audio cuts in and out) and the New Market Tax
Credits. And the strength of the project is also borne out by the part of it where again | was on the “no way”
train that said, no way you are going to be able to raise private funding and donations of this amount, but
not only are they doing it, they are doing it in spite (audio cuts out). So the private donation fundraiser part
which | guess this may be the (inaudible) part, there’s the fundraising committee’s activities and then the
Tax Credit and not only is the fundraising committee knocking it out of the park completely, but they still
see the opportunity for the investors to want to be a part of this and get the visibility of being large donors
but the benefits of New Market Tax Credit, they can still get in on this. Is there a process for them to
contact your office about interest in that?
Chairman Dowd
Director Cummings?
Director Cummings
Thank you. So there are absolutely ways for people to still get involved in the project; they should be
contacting the Capital Campaign Committee. Deb Novotny and Rich Lannan are the two key individuals
that | would recommend that someone speak to, to be able to get involved if they have an interest in getting
involved.
Alderman Lopez
Is there a particular type of business that you would think that should be most aware of what New Market
Tax Credits are and that they may already have the ability to apply for this or benefit from this?
Director Cummings
OH Ok, actually so to be clear, yeah, I’m sorry Alderman Lopez. To be clear the way the New Market Tax
Credits Program works is once you are given an allocation, you have to go find the investor. So over the
last few weeks that’s what we have been working on, is finding someone to actually buy the credits from us
that Mascoma is giving to us, they have the legal ability to give to us. And so that’s what we have been
working on. Now we didn’t start out on this path, but after many conversations it looks as though and | am
pleased to say that actually Mascoma wants to be the investor of the Tax Credit as well, that’s how much
they believe in this project. So they have not only given their allocation but they are actually going to buy
and be in the investor of the tax credit so they can reduce their own business tax liability.
