Brattleboro Development Credit

“Chroma technology corp. Project scope of work: (1) coordinate, audit, and control financial projections; (2) review and approve financial materials and final financing packages; (3) work with professional service provider to prepare tax credit application, grant management administration, and oversight; (4) perform functions relevant to legal requirements of project in coordination with development consultant, attorneys, and others; and (5) execute design and construction functions on behalf of the project.”

“Sole member of the corporation shall be brattleboro development credit corporation, ("bdcc") a vermont public benefit nonprofit, tax-exempt corporation.”

“Pursuant to section 3.2 of the by-laws the board of directors shall at all time include president of bdcc and the executive director of bdcc.”

“Pursuant to section 7.1 of the by-laws, bdcc may amend or repeal the by-laws.”

“A draft of form 990 with all attachments was distributed to the directors in advance of a meeting to discuss the filings. Directors input was sought and appopriate additional disclosures and corrections were made.”

“On an annual basis, the conflict of interest / related party transaction policy is reviewed and edited for compliance, as necessary. Any / all edits are confirmed with general counsel, and then the policy is reviewed and approved by the bdcc board of trustees, including the completion of the questionnaire which is completed by staff and the board of directors/trustees. These questionnaires are completed at least annually, or as needed, and are executed in parallel with the start of each fiscal year. If there is a potential conflict of interest the individual involved does not cast a vote on such matter.”

“Governing documents and policies are available for public inspection at the organization's office during regular business hours, upon request.”

“The following excerpt is from note 14 of the consolidated financial statements: the nmtc program was established by congress in 2000 to spur new or increased investment in operating businesses and real estate projects located in low-income communities. The nmtc program attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax return in exchange for making equity investments in specialized financial institutions called community development entities (cdes). The credit totals 39% of the original investment amount and is claimed over a period of seven years (5% for each of the first three years, and 6% for each of the remaining four years). The investment in the cde cannot be redeemed before the end of the seven-year period. On may 31, 2016, bdcc entered into an agreement to provide financial support and shared facilities to the chroma technology corp. Expansion project (the project). The project (i) purchased a 30,742 square foot manufacturing and commercial office building at 10 imtec lane, bellows falls, vermont (the property); (ii) renovated the existing facility including design, permitting and construction of approximately 6,000 square feet of the existing facility; (iii) constructed 25,502 square feet of additional manufacturing space; (iv) constructed and expanded parking areas adjacent to the existing facility; (v) acquired certain manufacturing equipment, and (vi) leased all facilities and the equipment to a regional manufacturing company, chroma technology corp. (the company). In march 2024, after the completion of the required seven-year nmtc period, the issuer of the nmtc loans (cdes) exercised its put option and began the process of liquidating its interest. As a result, the issuer of the nmtc loans sold its interest in the nmtc investor to bdcc for a put price of $1,000. Exercise of the put option provides bdcc with ownership of the nmtc investor, which allows for the settlement of the associated nmtc notes receivable and payable, as bdcc becomes the holder of the cde's notes receivable from bdcc holdings ii. Upon forgiveness of the loans, the property was transferred back to the company. The net financial impact to bdcc holdings ii was $577,856.”