New Hampshire’s Mascoma Bank is the hub for distributing the Federal Government’s New Market Tax Credit money, designed to provide investor tax credits for projects developed in low-income neighborhoods that improve the economic conditions of those living in hardship. Typical project developments include food, health, and education businesses.
Mascoma Bank allocated NMTC funding for Nashua’s Performing Arts Center on Main Street, which borders Nashua’s Tree Street neighborhood. This neighborhood is the poorest in the State. Does it make sense that a performing arts center would improve the economic condition of Tree Streets? Are these folks purchasing $50 to $500 tickets to enjoy a cultural experience?
City leaders intended to enter into this shady scheme to hide the actual costs of the Arts Center and prevent the public from accessing public records. It worked. We don’t know the total cost of the Arts Center nor the long-term commitment to the debt we guaranteed and will assume from Mascoma Bank.
A few citizens have done civic-minded investigative work to unravel this apparent fraud and deception enacted by our City leaders.
A citizen wrote to Mascoma Bank and posted that their fee structure ripped off the public and that the deal should have been rejected. Mascoma put this senior citizen in their place and wrote a cease-and-desist letter claiming they would use all their legal might against them if they continued with their “defamatory” statements. Geesh, that seemed a little over the top.
The citizen politely responded to Mascoma Bank’s bristling letter and provided a fascinating email obtained in the investigation into this Arts Center funding.
The fascinating email was written by Neil Cannon, a city-hired Arts Center consultant and expert in tax credits. Cannon had become fed up with Mascoma Bank’s distribution of these credits and leveled some harsh and threatening statements of his own. The email was written to Mascoma V.P. Richard Jennings, who was responsible for doling out the money.
You guys -as well as Baker Tilly folks- really need a lesson in economic development. Shuffling jobs around at Eagle Square and creating possible negative impacts … and using this ridiculous project solely to meet your desperate needs to deploy funds against a deadline is NOT economic development. … I suggest that you may be measuring benefit in terms of MSB/MCD earnings.
Let me just say that I have been concerned about your misguided “mission” for some time now…and many of my colleagues in the economic development field agree with me. When a home state CDE refuses to sub-allocate funding for a rural manufacturing facility in one of the State’s poorest communities I believe that our congressional delegation as well as the Secretary of the Treasury should hear about it. Stay tuned
Soon after this email, Mr. Jennings retired and left his position at Mascoma Bank. Mascoma’s Tax credit given to Nashua took years to negotiate, and what started as a $10,000,000 tax credit ended up being $2,400,000. Who was the “investor” in the NMTC project? – the City of Nashua. Would Mr. Jennings’ replacement have approved such a scheme?
