By PAULA TRACY, InDepthNH.org
CONCORD – Calling it a “monumental decision” made by Republican Gov. Kelly Ayotte to pull the plug on the sale and development of the Hampton Interstate 95 liquor store properties into New Hampshire Welcome Centers, Executive Councilor Joe Kenney, R-Wakefield, said Monday he is hearing from many across the state who have questions and he has few answers.
Kenney said that he has been told Ayotte wants to lease the parcels instead of the sale and that she did not want the properties to be like “New Jersey.”
Kenney said when the Executive Council meets on Wednesday he hopes to have some public discussion on the governor’s rationale, particularly at a time when it could help with the state’s shortfall in revenues and reduce Hampton’s tax burden.
“I think we need to clear the air,” he said, Monday noting the governor did not seek his input on her decision, but it seemed possible that there had been some communication with Executive Councilor Janet Stevens, R-Rye, in whose district Hampton lies.
Stevens has not replied to an email request for comment on the matter.
The state was working through the secret process with four bidders the past six years, and it was considered unfinished business for former Republican Gov. Chris Sununu. He had indicated he would have liked to have seen it through but the process was lengthy.
Just which of the four bidders was chosen and what they offered as terms for the sale are considered confidential under the bid process, according to the April 30 Notice of Cancellation/Withdrawal and held confidential in accordance with RSA 21-G:37, VI.
Three bidders have addresses of corporations based in Massachusetts and one, the Common Man Roadside is based in Hooksett.
Also listed as bidders were Global Montello Group Corporation of Waltham, Mass., Nouria Energy Corporation, of Worcester, Mass and Petrogas Group US Inc. (doing business as Applegreen) in Andover, Mass.
According to the real estate listing, “These very unique and prime development sites, on highly trafficked I-95, are ideal for highway based businesses. With over 62,000 vehicles passing daily and well over 100,000 daily vehicles during peak summer months…”
“These are the largest direct highway access lots ever offered in the state of New Hampshire and are the perfect opportunity for a buyer/developer looking to invest in a signature property,” it reads.
Part of the proposal indicated that the liquor stores would remain open during construction.
Hampton created a special zone to allow for development of the two sites.
The Common Man Roadside leases the northbound and southbound side of Interstate 93 at Hooksett from the state.
Kenney said he believed it was not a sale agreement there because of the lot sizes at Hooksett.
It recently received a five-year extension on its 35-year lease from the Executive Council on a 3-2 vote in which Executive Councilors David Wheeler and Stevens opposed.
Kenney said he did not know exactly why the state did not go for another lease agreement for the Hampton, although it was noted that the land would become taxable to the Town of Hampton and it would receive upwards of $1 million.
Jamie Sullivan, town manager for the Town of Hampton was not immediately available to comment on the impacts of the governor’s change on Monday.
Kenney said in 2017 and as part of the House budget trailer bill, HB 517, the legislature indicated that the properties in Hampton were to be sold. They are two parcels totaling almost 90 acres with two liquor stores on them.
He said the terms the legislature set up for the sale to be no less than $15 million.
The proceeds were to go to pay off State Liquor Store indebtedness, he added. The Liquor Commission had been working on the bids under the direction of Joseph Mollica whose term as chair of the liquor commission is up this year.
Rather than declaring the parcels as abandoned (with the exceptions of the liquor stores) and going through the state process to sell, former Gov. Sununu chose this process, as was done with the sale of the Laconia State School, which is still underway with no closing yet.
Kenney said the interstate welcome center on I-93, a decision made more than eight years ago with a formula for the state to get returns on sales of gas, food concession, gross sales at the common store, and base lease costs.
About two years ago, On May 31, 2023, while in its sixth year of opeartions at Hooksett, the company got a five-year state contract extension on a 35-year lease, from the council citing a need for better terms on financing an expansion.
This came on a 3-2 vote and passed, despite some concern by Executive Councilors Janet Stevens and David Wheeler, R-Milford, that they are looking too far down the road.
The extension allows the company to operate the rest areas at Hooksett through June 2053.
Granite State Hospitality LLC, doing business as the Common Man Hooksett, Meredith, is owned by Alex Ray of Holderness, and Edward J. “Rusty” McLear Jr. of Meredith.
While both councilors noted they believe the company is doing a good job, they indicated concern for the length of the agreement.
The state will get an estimated $400,000 more for rent a year from the expansion, Department of Transportation Commissioner Bill Cass told then-Gov. Sununu.
The expansion is to increase the dining areas and the very profitable and popular convenience stores, which may be the only places where beer is sold on an interstate in the country.
Cass wrote in 2023 that the General Stores have seen revenue increases by 13 percent in Fiscal Year 2021 and in 2022, by 39 percent after the pandemic but even in the first year, the place was exceeding revenue projections.
In 2024 Common Man Roadside paid $262,610 to the Town of Hooksett for its real estate taxes on both sides of Interstate 93 according to town records.
At the council meeting two years ago, Wheeler said they are doing a great job as an operator but he was concerned about what would happen if they sold the business, the fact there was no commitment for them to do the expansion which is not outlined in the contract extension request, and wondered what benefit the state would get by allowing for the extension.
Cass said the state will get the immediate benefit of improved services on the highway and more revenue.
Former Councilor Ted Gatsas, R-Manchester, asked Cass if they would likely come back and ask for another extension in five years. Cass said it would be unlikely. Both McLear and Ray attended the meeting but did not speak.
Sununu also said it was his understanding that the original construction paid for by the company with the exception of the liquor stores, did not anticipate the demand they are experiencing.
The request bears that contention out and notes the company has spent almost $4 million to date on improvements past the original construction.
Former Executive Councilor Cinde Warmington, D-Concord, then said not approving the request would likely be a disservice to the state and its visitors.
On Monday, Kenney said he is hearing from a lot of people about the Ayotte decision in Hampton.
He said the council prides itself on transparency and to the extent possible, the governor’s reasoning has to be heard.
The governor’s office did not return calls on this subject to InDepthNH.org.