By PAULA TRACY, InDepthNH.org
WEST STEWARTSTOWN – By a 2-1 vote, the Coos County Commissioners approved a resolution Monday that could help pave the way for the $200 million phase one redevelopment of the Balsams Resort in Dixville Notch.
Devloper Les Otten said he’s pleased with this “important progress.”
“With this resolution, Provident can take the next step toward financing the Lake Gloriette House and convention center, a major component of the Balsams rebirth. We are pleased to see pre-sale reservations picking up considerably. There is a buzz around the Balsams again, and it is wonderful to see,” Otten said.
Commissioner Paul Grenier of Berlin said he and fellow Commissioner Raymond Gordon of Colebrook approved of the resolution brought by developer Les Otten with Commissioner Thomas Brady of Jefferson voting no.
The non-binding resolution supports the non-profit Provident Resources Group, which would own and construct the 650-seat Gloriette House convention center on the property and invest $100 million as part of the phase one reconstruction plan of the resort.
Closed since December 2011, Otten has been putting in efforts the past seven years to revive the resort on 11,000 acres, including its ski area and the Donald Ross-designed Panorama Golf Course.
He addressed the Coos County Commissioners last week and announced that this potential partner would need such an invitation or resolution to satisfy the IRS.
“As a 501-c-3, Provident has requirements from the IRS that state they need to be ‘invited’ to participate in a project that will benefit the county,” development spokesman Scott Tranchemontagne, said.
He called it “a major component of our redevelopment plan.”
The resolution reads that the project will “actually lessen the government burden and accomplish the county’s objectives while not encumbering the county in any way or making it liable.”
The developer said that by approving the “invite” resolution, the county is simply showing support for the project and Provident’s participation but does not encumber or make liable the county, he noted.
“The resolution in no way, shape, or form makes the County liable in any way for the bonds that will ultimately be sold and paid back by the taxes/assessments on the real estate,” Tranchemontagne said.
With the help of local elected officials, the House and Senate passed and the governor signed HB 540 three years ago that gave the county the ability to create a Tax Assessment District around the Balsams property.
Tranchemontagne said getting the $100 million commitment from Provident is critical to attracting more investors.
He said Goldman Sachs is looking at underwriting the bond which will be sold to institutional investors.
“Again – there would be no financial risk to the County taxpayers in any way,” he stressed.
