New buyer for Laconia site offers $10.5M, would have two years to close
Published: 09-03-2024 5:58 AM |
The state has chosen a new buyer for its 217-acre former Laconia State School property. The $10.5 million offer is about half what the state’s previous buyer offered but ultimately could not deliver.
But a sale is not imminent.
The Executive Council must approve the proposed purchase and sales, which the Department of Administrative Services first made public Friday morning. That vote could come at the council’s 10 a.m. meeting Friday but could be pushed out to allow more time to review the proposal.
And the state doesn’t expect to close a deal with its new buyer, Michael Kettenbach, principal owner of Pillsbury Realty Development in Londonderry, for about two years under the terms of the deal, said Charlie Arlinghaus, commissioner of the Department of Administrative Services.
Though Kettenbach would be required to give the state $500,000 in non-refundable “earnest money” before then.
The proposed purchase and sale does not describe Kettenbach’s plans for the property and he could not be immediately reached Friday. Arlinghaus said Friday that it will be a mixed-use development.
The state received five offers from four entities, Arlinghaus said. Some offered far less, $5 million in one case, but offered to close within a few months. An advisory, which included Laconia’s city manager, favored one of those proposals in order to move a project along more quickly.
Arlinghaus said the Executive Council favored a higher offer that, while it will take longer, will not close unless the developer gets the necessary federal, state, and local permits to move forward.
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“There are two types of proposals,” Arlinghaus said.
A quick-close would guarantee a close but eliminate assurance the developer would obtain the necessary permits to develop the proposed project. The deal with Kettenbach means the state won’t know for two years if a sale goes through. But if it does, his plan will have undergone scrutiny at multiple levels.
“Everybody’s intention is to get to a point two years from now where we close,” he said. “But that doesn’t mean there’s not a lot of uncertainty and permitting and all of that.”
Kettenbach and Pillsbury Realty Development are developing 600 acres in Londonderry as a mixed-use site with housing and retail.
According to its website, Woodmont Commons will have apartments, town houses, single-family homes, and independent living. A studio apartment will rent for $1,999 a month, with a one-bedroom apartment advertised at $2,540 a month, according to real estate listings.
Previously, the state had approved a $21.5 million sale to Robynne Alexander of Manchester for the Laconia property.
Alexander’s proposed development also included a mix of housing, retail, and assisted living.
She had never developed something as large, and the Bulletin’s 18-month investigation revealed serious concerns about her finances. She has been sued by multiple investors, is facing her third foreclosure, and has a history of failing to pay property taxes on time.
In April, the Bulletin reported that Alexander was under investigation by the Bureau of Securities Regulation, an agency charged with protecting investors against fraud.