City looking to acquire state-owned abandoned railroad land on Paugus Bay

LACONIA — The city is looking to purchase a narrow, 3.63-acre stretch of land along abandoned railroad tracks between Union Avenue and the western edge of Paugus Bay near Lakeport.

The land, while largely not developable, presents an opportunity for the city to be both good stewards of city drinking water and to support local businesses that abut the former railroad, said Mayor Andrew Hosmer. The land is state-owned, and the city has the right of first refusal after the state declared the land surplus.

Known as the former Lakeshore spur, the property is a discontinued rail corridor split into five segments, four of which are contiguous. The southernmost edge of the land, segment four, abuts the intake for city water on Paugus Bay. Segment five is located across Union Avenue between the wetlands behind McDonald’s and Blaisdell Avenue.

A 2020 appraisal of the land named its value as $272,500. According to Hosmer, the water department has access to a grant for $90,000 which could cover the cost of segment four, appraised at $70,000.

The city water department hopes to use segment four to augment the land buffer around the water intake site. Ideally, Hosmer said, the city would make an offer to the state for the full tract, which would be accepted, and then the city would divide the remaining sections among three abutting businesses, who would also cover remaining costs.

“I’d like this transaction to take place and have it not cost the city anything and we protect the inflow,” Hosmer said. 

Great NH Restaurants, whose local T-Bones location abuts segment two; Spinnaker Cove Yacht Club, whose driveway access and parking include parts of segment one; and Irwin Marine, which has a waterfront storage facility partially overlapped by segment three, have expressed interest in this purchase, according to Hosmer. 

City council voted unanimously at its Feb. 27 meeting to inform the state of its interest in purchasing the land. The council will prepare an offer and hold a public hearing on the potential purpose at its March 27 meeting.