City to explore housing options for North Main land

LACONIA — City councilors will discuss the creation of a committee tasked with exploring creating a housing development on a large, city-owned parcel near the State School property during their meeting on Monday night. 

The committee, if created, would look at the feasibility of selling, leasing or entering into a development agreement to create housing at the intersection of Old North Main Street and Parade Road, just across the street from where the state plans to construct the new 911 call center following the eventual sale and redevelopment of the former Laconia State School property. 

The 10.4-acre parcel, which was transferred from the state to the city in 2022, holds an assessed value of $715,900, according to a government property database. It’s residentially zoned with a performance zoning overlay, which is meant to promote flexibility in redevelopment of parcels in that area. 

That parcel was transferred to the city as part of a land swap with the state. The state acquired the adjacent land, which is now the proposed location for a new 911 communications center — the existing facility will be displaced by the eventual sale and development of the State School property.

Mayor Andrew Hosmer said Friday at that time he thought the 10.4-acre parcel would prove to be more valuable to the city in the long-term and that it made sense to agree to the swap, as they would be able to consider selling or leasing it to the highest bidder.

At the time the state asked the city to break its lease and swap the land, the city held a 99-year lease on the Meredith Center Road property.

But now, and in light of the lessons learned by city leaders through the State School property sale saga, Hosmer said accepting the highest bidder for the 10.4-acre parcel may not be the best course of action for the city, and the goal of the endeavor is not a large apartment complex nor a shelter.

“When I envisioned this parcel and its potential for housing, I wasn’t thinking of shelters and large apartments,” he said. 

It would provide a greater benefit to the city to take an all-encompassing approach to the future of the property, vetting potential developers thoroughly and ensuring they would be willing to work with community stakeholders in adjacent neighborhoods to maintain the character and quality of those neighborhoods, while concurrently addressing the shortage of affordable and workforce housing. Hosmer noted the lack of those sorts of housing represent one of the greatest challenges facing the city. 

The purpose of an anticipated proposal process is to make potential developers aware the city owns a 10.4-acre parcel ripe for development — as long as it's the right kind — so city leaders can work with those developers in crafting a request for bids that checks all the appropriate boxes. 

“We want someone who is willing to work closely with the residents of that neighborhood,” Hosmer said. 

Hosmer took a recent trip with other New Hampshire mayors to visit Dover, where they saw an innovative approach to workforce and affordable housing development. 

John and Maggie Randolph built 44 units, which opened in October 2023, of roughly 500-square-foot cottages priced to be affordable to middle-income and municipal employees, including police, firefighters, teachers and public works employees.

In pondering the relative success of that development, Hosmer noted the lack of affordable housing is one of the factors which influences the city’s difficulties in recruiting and retaining public employees. 

But it’s too soon to say if either a lease agreement or an outright sale of the property would make the most sense, Hosmer said. An exploratory committee, which could be created at the city council meeting on Monday night, would take point in looking into every option. Councilors Bruce Cheney (Ward 1) and Eric Hoffman (Ward 3) could be included in a joint committee comprised of neighborhood residents and city representatives.

If the right development situation doesn’t become apparent, the city would likely sit on the property. They wouldn’t be bound to take any action regarding its lease or sale based on the creation of an exploratory committee.

“Really, all we want to do is to solicit some interest in it,” he said.

Laconia City Council will meet at 7 p.m. on Monday, Aug. 12, at City Hall, 45 Beacon St. E.