State sweetens deal to sell Lakes Region facility

Citing increased interest, the state has extended its bidding period for real estate companies interested in helping the state commercialize the 220-acre former Lakes Region Facility in Laconia, property that Governor Chris Sununu is imposing on new legislation As part of this year’s packaged budget trailer invoice.

The law change that allows Sununu to sell the property with majority approval from the five-member Executive Board removes some requirements in state laws that govern the sale of other “surplus” state properties.

One of them would have requested that the state offer the property to Laconia first and also go through “multiple levels of internal government review,” according to the State Department of Administrative Services’ invitation to tender. The change in law also removes a second legal requirement that would have required the state to identify and protect historical resources on the property.

“The result is a new kind of disposal guideline and a procedure that can be uniquely applied to the property in question and that allows the state more flexibility in negotiating a relatively quick ‘as-is sale’,” said the state’s request for quotation. Other incentives include marketing payments to the winning bidder if the property does not sell or is sold for “near zero dollars.”

City officials have raised concerns that the city will not be involved in the redevelopment and sale of the property. Laconia Executive Council, Joe Kenney, a Union Republican, and two Laconia State officials have said the city’s interests must be considered.

“I’m not going to vote for a developer who doesn’t work with the City of Laconia,” said Kenney. “I’m interested in the city. If you’re happy with a new plan from a development company, I’m happy. But we still have a long way to go to the point where all parties agree. ”

Prior to the change in law, the development and sale of the property was solely with the Lakeshore Redevelopment Planning Commission, which had no leeway to circumvent the law. The commission created by the legislature in 2017 carried out a real estate market analysis, technical and ecological assessments and land surveys; requested grants; and proposed several redevelopment options that include a mix of residential and senior housing, as well as medical care.

The archaeological studies identified a milk barn and a sugar shack from the time the property was used as a Laconian state school as “contributing elements” to the history of the school. The studies also found that several buildings were built on the property by noted New Hampshire architect Chase Roy Whitcher, and the studies revealed the possibility that human remains from 1903-1941 were buried.

Commission chairman George Bald, former commissioner for the State Department of Resources and Economic Development, said his group was continuing to work on preparing the property for sale. He said Monday he was unaware of the state’s efforts.

The state recognized the work of the commission but said its efforts to find a partner to market the property were independent of the work of the commission in finding a buyer and “without regard” to the mandate of the commission. The state also warned bidders not to rely too much on the commission’s investigations and reports, saying the state’s focus on publicizing the property by the end of the summer was different from that of the commission.

This difference in mission is a concern of Laconia Mayor Andrew Hosmer, who said Sununu was ignoring the city’s interests. The property is located on Route 106, 2 miles from downtown of the city. “George and his team did an amazing job adding to the property’s value and they were incredibly inclusive,” said Hosmer. “He went out of his way to keep me and the city manager up to date.”

Hosmer is also concerned about the fate of an emergency call center and the Lakes Region Mutual Fire Aid Association that are on the premises; the fire brigade association provides fire and rescue operations to 35 towns in the lake region. Hosmer said the city had not been told whether the communication centers could continue to use the site; The state’s tender states that the state and the winner will work together to clarify the current use of the property.

The state also recognized Laconia’s interest in the property and advised bidders that the town should be treated like any other potential buyer.

“This is really disrespectful to the people of Laconia City, who see this property as a transformative property,” said Hosmer.

A building on the site of the former Lakes Region Facility, with barbed wire on a chain link fence

The property was home to Laconia State School, where people with disabilities lived on the community for much or all of their lives, until it closed in 1991. The state Ministry of Justice used the site as a minimum and medium security prison until 2009. Since then, most of the buildings have been empty.

The state is promoting the property’s potential value, saying it offers “tremendous views” of Lake Winnisquam and Opechee Bay. The property, divided into two lots, is adjacent to Ahern State Park, which encompasses over 3,500 feet of the shoreline of Lake Winnisquam. (The state park is not included.) However, it should also be noted that redevelopment of the site, with nearly 30 buildings in various dilapidated states, is a lot of work. The state’s tender stated that it was selling the property “as it is, in its current condition with all its flaws”.

The state offers the successful bidder a commission on the sale price, but also a payment for the preparation of the property in the event that no buyers show up or the property is sold for “almost zero dollars”. These “recovery fees” have not yet been offered.

“As a result, all previous attempts to attract and retain a qualified real estate service company to effectively market the property have failed,” said the state, “mainly because no qualified company was willing to invest in the extensive preparatory work required to work, to be able to effectively market the property when the risk of not being able to cover the costs of such work seemed so high. ”

Initial questions from potential vendors could suggest that at least one is from outside the United States. The inquiries – with answers from the department – ask whether companies from abroad can bid (yes); if the work can be done from outside the country (unlikely, the state said); and if the bidder has to attend meetings in person (yes).

The state is looking for a single commercial real estate company with experience marketing real estate in national “or at least the northeastern states” and has successfully completed projects for the state of New Hampshire and other states. Bidders must have been in the commercial real estate business for at least five years and have completed at least two projects of similar size and complexity.

Kenney said he was helping develop and sell the property, in part to generate tax revenue for the city. And, he said, Laconia will retain some control over the future of the property once the zoning plans are presented to the planning and development committee.

Rep. Travis O’Hara, a Republican from Belmont, said he was trying to remove the law change from the sprawling budget trailer bill and propose it in standalone legislation. He said he met with Hosmer and City Manager Scott Meyers and hoped the state will appreciate the city’s contribution.

“I don’t like just being the governor,” said O’Hara. “But I trust that he will make the right choice for the city.”

Rep. Dawn Johnson, a Laconia Republican, said she tried to contact Sununu to request that the city be involved in the development of the property. “I disagree with the handling,” she said, adding that she was grateful that at least three members of the Executive Board had to agree to a contract.

“Nobody should ever be in complete control of anything,” said Johnson. “There has to be more checks and balances and more people have to be involved.”

(Annmarie Timmins is a senior reporter for the New Hampshire Bulletin. She is from New Hampshire who covered state government, courts and social justice for the Concord Monitor for 25 years.)