Nashua Board of Aldermen and Budget Review Committee Special Meeting - September 23, 2025

The joint special meeting of the Board of Aldermen and the Budget Review Committee convened on Monday, September 22, 2025, at 7:00 PM in the Aldermanic Chamber, with Alderman Samet participating remotely due to illness. The meeting included a public hearing on a supplemental appropriation for affordable housing and consideration of several resolutions, including a PILOT agreement for the Maynard Homes redevelopment, use of fund balance to mitigate the tax rate increase, and funding for a Keefe Auditorium study.

Consent Calendar

• R25151 (bonding for Public Works garage) was tabled by request, with a 6–0 roll call vote.

Public Comments & Testimony

• Joseph Olafrovich, 35 Newbury Street, member of the Keefe Auditorium Commission, spoke in favor of R25206. He emphasized that the commission cannot develop a proper scope without architectural studies and urged the committee to approve the $75,000 transfer to fund three design scenarios (bare minimum, medium scope with expansion, and full performing arts center). He noted that Keefe is crucial for Symphony New Hampshire and the Actorsingers, as the city lacks another egress venue for their full-scale productions.

Discussion Items

• R25205 – Supplemental Appropriation for Housing Revolving Fund: Director Matt Sullivan explained that $25,000 in unanticipated revenue from the Clock Tower project refinancing would be redirected from the general fund to the housing revolving fund. He noted that the fund currently has four conditional awards, including a $1.5 million loan for the Maynard Homes project. Alderman Lopez asked about the definition of affordable housing; Sullivan clarified it generally means households at or below 80% of area median income, with the fund prioritizing deeper affordability (60%, 50%, 30% AMI). Alderman Lopez also asked about the fund’s name change from ‘trust’ to ‘revolving’ to allow loans. The public hearing had no testimony for or against. The committee later voted 6–0 to recommend final passage.

• R25197 – Maynard Homes Phase 1 PILOT Agreement: Sullivan presented the development agreement for the redevelopment of Maynard Homes (Burke Street). Phase 1 will demolish 70 existing units and replace them with 179 affordable units, split into 4% and 9% tax credit projects. Key terms: a 12-year PILOT agreement with zero taxes during construction (2026–2029), followed by payments starting at $139,650 (4% project) and $48,300 (9% project), escalating at 3% annually through 2041. Fee waivers of up to $425,000 (sewer, building permit, school impact fees) are included. The developer will build a trailhead off Engel Street, maintain the bus shelter, and upgrade on-site stormwater infrastructure. Streets will become private. Lynn Lombardi (Nashua Housing Authority) confirmed that 20 families have been relocated using tenant protection vouchers, and all residents will have the right to return to the new units. Aldermen discussed the loss of tax revenue versus the value of affordable housing; Sullivan argued the payments reflect cost of services and the project would not be feasible without concessions. The committee voted 6–0 to recommend final passage.

• R25198 – Use of Fund Balance for Tax Rate: Chief Financial Officer Don Enright proposed using $6 million from the unassigned fund balance to reduce the tax rate increase from 6% to 3.7% (a reduction of 2.3%). After this, the unassigned fund balance would be $41.1 million, or 11.4% of FY26 appropriations (above the 10% minimum). Aldermen questioned why not use more; Enright cautioned against creating a structural deficit for future years. The committee voted 6–0 to recommend final passage.

• R25206 – Keefe Auditorium Architectural Study: Alderman Clemens moved to transfer $75,000 from the general contingency account to fund three conceptual designs and cost estimates for the Keefe Auditorium. Options range from minimal preservation to full renovation. Joseph Olafrovich (Keefe Commission) added that the study will evaluate structural viability, potential for public-private partnerships, and the needs of arts organizations. Alderman Sullivan voted yes but stressed this does not endorse city ownership; Alderman Kelly voted no, citing the already high 6% tax rate increase and other fiscal pressures. The committee approved the motion 5–1.

Key Outcomes

• R25205 (Housing Revolving Fund appropriation): Recommended 6–0.
• R25197 (Maynard Homes PILOT): Recommended 6–0.
• R25198 (Fund balance use for tax rate): Recommended 6–0.
• R25206 (Keefe Auditorium study): Recommended 5–1 (Alderman Kelly dissenting).
• The special Board of Aldermen meeting was adjourned at 7:12 PM, and the Budget Review Committee adjourned at 8:38 PM.