Update on NMTC numbers

October 29, 2009

The New Market Tax Credit numbers are better than Ed Gray reported in August, based on the latest info that I’ve received:

Gross Proceeds from Bonds: $44,922,968………………………….Not the $48M that Donovan claims – will he need a new Pac name?
Museum Cash on Hand: $4,463,879
Federal NMTC: $19,247,426
State NMTC: $2,062,500
Total Sources: $70,696,773

CMPA Infrastructure: $40,000,000 (net proceeds of Bonds – includes $2 million CRA reimbursement)
Maritime Museum: $18,847,782 (UWF Cash on Hand + NMTC NET Revenue)
Cost of Issuance of bonds: $652,180
Bond Insurance: $809,015
Capitalized Interest – bonds:$3,461,773
CDE Fee: $3,607,833
Legal fees:$350,000
CDE Audit/compliance over 7 years:$311,000
Debt Service (1% of NMTC – 7 years):$1,491,694 —(set in escrow to pay)
Retiring NMTC Debt Year 7: $1,065,496 (escrow)
Other Professional Fees: $100,000
Total Uses: $70,696,773

CMPA Construction: $38,000,000
CRA reimbursement:$2,000,000
Maritime Museum:$18,847,782 (UWF Cash on Hand + NMTC NET Revenue)
Costs associated with bonds: $1,461,195 (would have to be paid regardless of NMTC opportunity)
Capitalized Interest – bonds: $3,461,773 (choice City is making to finance first 3 years interest while project is being constructed and not generating any revenue – Paid regardless of NMTC)
NMTC Fees: $4,368,833 (paid out of the NMTC Gross Revenue)
NMTC Debt Service (over 7 years): 2,557,190 (paid out of NMTC Gross revenue
Total Uses: $70,696,773

City pays back from proceeds $2.6 million of the $21.3 million for NMTC. The remainder, $18.7 million, is forgiven….Free

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