It seems like some of Nashua’s Aldermen are telling residents that they will not have to pay for the Performing Arts Center, however, this is a lie.
Related: Nashua Residents: Expect a Hefty Increase in Your Tax Bill Next Year.
Everyone needs to read the report on the Performing Arts Center because it shows that both the mayor and the Board of Aldermen do not care about the Nashua resident. The Performing Arts Center Feasibility Study can be found on the city’s website. Please note that this study is dated in 2019 and has NOT been updated with current costs.
The primary need for NMTC (New Market Tax Credit) financing is to fill the gap in the development budget ($15 million bond vs $19,217,500 in project costs).
The total budget is $19,217,500 has been developed with Icon Architecture and Harvey Construction. Upper-tier funding would be provided by a Senior Leverage Loan of $10,482,500 and an NMTC equity investment of $4,972,500. Nashua residents must remember that these figures do not include any interest and is expected to be over $10 million dollars.
Upon completion of the facility, it will be leased back to the City of Nashua pursuant to a Master Lease agreement. No mention of how much money it will be leased back to the City of Nashua for but whatever it is it will come out of the Nashua taxpayers’ pocket.
The city will in turn sub-lease the NPAC space for a NOMINAL FEE TO SPECTACLE MANAGEMENT.
Special notes were made in the proposal by Mr. Cummings:
1) Nashua voters supported the project in a non-binding referendum conducted in November 2017.
2) The proposed project enjoys widespread support from Nashua residents.
3) 29.3% of the people living in that area around the Performing Arts Center live in poverty.
4) Median Family Income is $26,908 for this area surrounding the Performing Arts Center.
5) Lansing Melbourne – at this time unwilling to pursue a hotel project within Nashua. However, they can foresee a development coupled with a couple of other key developments along with the Performing Arts Center. What other projects would Lansing Melbourne like Nashua taxpayers to pay for.
6) Pinnacle Advisory Group – concluded that development of a 100-room hotel would be feasible given some financial incentive from the city and the completion of the Performing Arts Center. The city is currently in active discussions with two major developers that have expressed an interest. What incentives is the mayor and Board of Aldermen going to give to Pinnacle?
7) Several restaurant operators have indicated interest in opening a restaurant at the Performing Arts Center —- Michael Timothy’s for one.
8) Bottom line is the bond will still be in the name of the City of Nashua and therefore the Nashua taxpayers WILL BE RESPONSIBLE TO PAY THIS BOND, which amounts to $15,500,000 plus interest of approx. $10,000,000. How is the mayor going to pay the $4,517,500 if the New Market Credit does not come to Nashua? Will the mayor put these additional monies on the backs of taxpayers? The mayor and/or Mr. Cummings is not willing to tell the Nashua taxpayers the cost for all other “soft costs.” Mr. Cummings has stated that some of the “soft costs” will be put into the general fund like Furniture and Fixtures, whereby the Nashua taxpayers will never get the full accounting of what the PAC has cost the Nashua taxpayer.
Mr. Cummings has a developing budget that states:
o CDE Loans of $14,700,000
o Equity of $4,517,500 (not all collected yet)
o Acquisition/Construction Costs $14,700,000
o Furniture and Fixtures $2,300,000
o Soft Costs $2,217,500 (not all soft costs are listed and Nashua residents still need to know how much money is required). Mr. Cummings mentioned that some hazardous building materials need to be removed and currently a hazardous material survey has been authorized but neglected to state who is paying for these projects and how much they cost.
Bottom line is that Nashua taxpayers’ will be paying for this proposal for many years both in bonds and with actual expenses for the “soft costs” that no one in city hall is willing to tell the Nashua taxpayers amounts to. When will the mayor realize that Nashua taxpayers’ have had enough with the spending?
