The site was for many years the Laconia State School and most recently home to a prison. (Alan MacRae | New Hampshire Bulletin)
State officials on Wednesday approved a new buyer for a 217-acre parcel in Laconia that’s proven hard to sell. But the buyer has two years to close, and the project may begin with commercial development, not the housing city officials say is desperately needed.
The $10.5 million sale the Executive Council approved with New Hampshire developer Michael Kettenbach is far less than a $21.5 million deal that fell apart in April when the prior buyer, Robynne Alexander, failed to produce the money.
Kettenbach, who with Pillsbury Realty Development is turning 600 acres in Londonderry into a mixed-use site, was one of four developers to make an offer. He has not returned messages and has not shared his plans for the former Laconia State School campus publicly.
Executive Councilor Joe Kenney, whose district includes Laconia, said Wednesday that he preferred one of the other lower-priced offers that would have closed sooner. He voted for a deal with Kettenbach, he said, because Kettnebach’s team has assured him it will work closely with the city of Laconia. Still, he has concerns.
“They are in the business of developing and making a profit,” Kenney said. “They will probably have to look at the commercial side first and housing might come after. But I emphasized … that the city really needs housing and that is something it probably prefers up front.”
Laconia Mayor Andrew Hosmer has said housing is the city’s most critical need.
Kenney said he also told Kettenbach’s team that the project needs to protect the state park and lakes that surround the site and honor the people who lived and worked at the Laconia State School, which housed individuals with intellectual disabilities.
The state has not identified the other developers who submitted offers. But one competitor had good things to say about the council’s selection Wednesday.
“We have the greatest praise for Mike Kettenbach and his team,” said Paul Hodes, an adviser for Hawthorne Development, which submitted an offer this time and during the first round, when the state chose Alexander. “I’ve seen their proposal and we shared a vision and goal for the project to make sure the interest of the city of Laconia and the state and community were well-served. We hope the project will be successful for all the stakeholders.”
During the first round of offers, Hawthorne proposed a mixed-use site that included a hotel, housing for all ages, an assisted-living facility, recreational space for the community, and retail space.
Gov. Chris Sununu, who persuaded lawmakers to change state law so he could sell the property outside the typical state review process, described the deal as “done” Wednesday.
“I’m thrilled that the Laconia State School redevelopment project passed at today’s Executive Council meeting!” he wrote in a statement. “This is an exciting opportunity for the city of Laconia, Lakes Region, and New Hampshire. Glad we got it done.”
But the deal is not yet done.
Kettenbach has two years to back out if he is unable to obtain permits for his proposed development. In the meantime, he must pay the state $500,000 in “earnest money” deposits. If he walks away from the deal within six months, he’d get that money back. After that, the state would keep it.