Board Of Aldermen

NASHUA PERFORMING ARTS CENTER — KEY ELEMENTS OF
NMTC’s

NUMBER 4

There is a 7 year compliance period. After that, any
restrictions on the transaction go away!

NUMBER 3
There are fees involved! Generally, these reduce the value of the NMTC by about 15%.

Proceeds from Sale of Credits: $331,500

Fees @ 15%: ($49,725)

NET EQUITY: $281,775
The key is LEVERAGE!

$281,775 (28%) leverages $718,225 (72%) in debt.

NASHUA PERFORMING ARTS CENTER — KEY ELEMENTS OF NMTC’s

NUMBER 2

The amount of the tax credit is 39% of Qualified Equity Investment
(“QE!I”). So, for example:

QEI Amount: $1,000,000
Credit Amount @ 39% = $390,000

The credit can be sold to an investor in order to raise cash (equity) for
the project. Current Pricing is estimated at $.85/S1.00. Therefore:

$390,000 in credits sold at $.85 = $331,500 in equity for the project.

NASHUA PERFORMING ARTS CENTER — KEY ELEMENTS OF NMTC’s

NUMBER 1

Assisted business must be a corporation or partnership that exists in a qualified
area. This is called at Qualified Area Low Income Community Business or
“QALICB”.

This means that the City of Nashua cannot be a direct beneficiary of the
program, but it can participate as a Lessee of QALICB property.

Special Bd. of Aldermen — 12/20/2018

PUBLIC COMMENT - None
REMARKS BY THE ALDERMEN - None

ADJOURNMENT

MOTION BY ALDERMAN DOWD TO ADJOURN
MOTION CARRIED

The meeting was declared adjourned at 8:45 p.m.

Attest: Patricia D. Piecuch, City Clerk

Page 23

Special Bd. of Aldermen — 12/20/2018 Page 22

Mr. Cummings

No to be able to move this project forward and actually go to construction, $4 million dollars of private money,
cash, needs to come in to this deal. How we are getting there, in this scenario, as I’ve outlined this equity
investor, for this conversation let’s say it is GE will commit to $7.2 million which we will eventually ultimately
see $5.2 in cash. That is above the $4 million dollar threshold of private money coming in to this deal.
Alderman Jette

Thank you.

Mr. Cummings

Special Bd. of Aldermen — 12/20/2018 Page 21
Alderman Jette

The loans, but you used the ‘s’ again.

Mr. Cannon There are 2 loans, remember there is a Loan A and a Loan B? Loan B is in the amount, the
reason there is two is because Loan A is the amount of the net bond proceeds and Loan B is the amount of the
Tax Credit Equity and at the end of the 7 years, Loan B is forgiven. You still have to pay down Loan A which is
whatever the balance is on the bond at that time.

Alderman Jette

Special Bd. of Aldermen — 12/20/2018 Page 20
Mr. Cannon_ It’s up to you.

Alderwoman Melizzi-Golja

Right but | mean it could go away in 7 years?
Mr. Cannon It could.

Alderwoman Melizzi-Golja

Special Bd. of Aldermen — 12/20/2018 Page 19

Mr. Cummings

Well one | want to make sure the Steering Committee has a full conversation about this process and have
them make a recommendation as to how they would like to see it unfold. | would like to make sure that this
body is comfortable with that and then also the Mayor. | mean those are the 3 big stakeholders that need to
come together to make sure that they are all in agreement with how this is structured.

Attorney Bolton

Special Bd. of Aldermen — 12/20/2018 Page 18

Mr. Cannon Right, right.
Alderman Tencza

Ok just so people are clear about that. And then the other question | have is just about the 7 year compliance
period because | think that it is a little confusing because of the project we are doing, | think people might
interpret that as the project has to be economically viable for 7 years but clearly the library in Keene is not
making money for the town right unless they have excessive overdue fees or something like that.