By PAULA TRACY, InDepthNH.org
HOLLIS – The state Executive Council has agreed to enter into an agreement to sell the former Laconia State School property in Laconia to a developer for $10.5 million.
The vote was 3-0 with two executive councilors, Democrat Cinde Warmington and Republican Janet Stevens recusing themselves from the vote at the council meeting, which was held at Brookdale Fruit Farm in Hollis.
The state received five offers for the 217-acre tract that once housed the state’s developmentally disabled.
Michael Kettenbach put in the offer to develop the property, and it was not the highest offer, said Charlie Arlinghaus, commissioner of the state Department of Administrative Services. Kettenbach is the principal owner of Pillsbury Realty Development in Londonderry and is the developer of Woodmont Commons in Londonderry. https://woodmontcommonsnh.com/
Arlinghaus said it is a contingent offer rather than a cash offer.
After the meeting, Laconia Mayor Andrew Hosmer said the city would move forward thoughtfully “to put guardrails in place” and the focus should not be on doing things “expeditiously” but to fulfill the responsibilities the city has to its residents.
Hosmer said the City Manager has been supportive of the group which has been chosen and has always gone above and beyond to work with the state’s chosen developer.
“We will wait and see how this goes,” Hosmer said.
At the meeting, Executive Councilor Joe Kenney, R-Wakefield, in whose district the land is located, said that this was not his first choice of the four proposals but his second.
He said that through conversations and concerns with the developer he was able to get assurances that the history of the property, which housed the developmentally disabled in the state for the better part of the 1900s would be honored. While he said he conveyed that the city of Laconia would like to see housing on the property, he said he understood the developer’s first priority would be to develop retail as a necessary return on investment and that he likes their “village” model of housing development for the property.
He also said that the developer has assured that it might not take 18 months but less time to close the deal should the city be able and willing to move with the proposal.
He voted to support the measure with Executive Councilors Ted Gatsas of Manchester and fellow Republican David Wheeler agreeing.
This is not the first time the state has sought to close on the property.
The first was a deal for $21.5 million which was offered by developer Robynne Alexander, but after a number of extensions, she was not able to close.
Alexander had an ambitious plan for housing, retail and commercial use. Questions were raised early on about whether she could raise the money. See story here: https://indepthnh.org/2022/12/14/questions-swirl-over-vetting-financial-backers-in-former-laconia-state-school-property-sale/
The sale has stirred controversy since Sununu gained control of the sale in 2021 with the goal of quickly selling it. The Lakeshore Redevelopment Planning Commission had been working for five years to prepare the property for sale.
On Dec. 21, 2022, the Executive Council voted 3-2 to enter a purchase and sales agreement to sell it to Alexander’s Legacy at Laconia LLC for $21.5 million. Voting to oppose the sale were Councilors Gatsas and Wheeler.
The property has been off the tax rolls for a century.
