Developer plans to convert commercial units to residential on Union Avenue

LACONIA — A conceptual application to convert mostly vacant commercial space on Union Avenue into residential apartment units could soon come before the planning board, the group heard Tuesday night.

Kurt Brungardt of Central Shore Holdings told the board he intends to build 14-16 apartment units in five buildings on Union Avenue on a 3.5-acre parcel near downtown. 

Central Shore Holdings and its four partners, including Brungardt and his wife Polly who have recently made donations to the Gilford and Laconia police departments, is under contract to purchase the buildings located at 376, 382, 386, 390 and 394 Union Ave. from Dr. David Livingston. 

“Just to be clear, there’s like 27 units total in the five Livingston buildings,” Brungardt said. “The Dr. Finn building where the Democrats are, we’re not changing any use in that building so it’s staying as-is.”

The total assessed value of the existing units at those addresses is over $1.3 million, according to Vision Government Solutions, a property value database used by municipalities. The buildings were purchased from BankNH in July 1999.

The purchase agreement is contingent on city approval to convert existing but vacant commercial and retail space there into residential apartment units.

Planning board members learned Brungardt intends to build one-, two-, three- and four-bedroom apartment units offered for rent at market rates, ranging from just over $1,000 per month for a one-bedroom unit to around $2,300 per month for a four-bedroom unit. Apartments will be leased on an annual basis, not short-term.

“There are eight buildings in that condo complex and with Dr. Livingston, we’re buying his five units,” Brungardt said.

None of the buildings included in the plan would host more than four apartments, alleviating the necessity to install a fire suppression system within the buildings. The footprint of each building will not be increased but developers intend to clean their exteriors, install new roofing and make other improvements.

Frank Yerkes of Dubois & King, representing Central Shore Holdings, said Union Square on Union Avenue was originally developed by Livingston among others and currently contains two residential apartments.

“We’re proposing to convert the commercial to 14-16 residential units,” Yerkes said. “There are no plans to change any of the building footprints, we’ve got detailed design plans in the works. Kurt [Brungardt] has met with the fire department and each building will have four units or less which won’t require sprinklers or a central station monitor.” 

Twenty-six existing commercial units and two residential units would be converted to residential apartments if the plan is brought to fruition, according to documents submitted by Central Shore Holdings to the planning department for their review.

The buildings have a large, existing parking lot available to future tenants. 

Planning board Chair Charlie St. Clair, who also represents Laconia in the Statehouse as a Democrat, asked Brungardt if he was aware of water drainage issues at the property, noting the basements of some of the buildings had flooded in the past. Brungardt said he was aware of an issue in one of the buildings which occurred earlier this year.

“The only building that I’ve heard an issue with was the Dr. Finn building in the basement there,” Brungardt said. “On the left-hand side, the Democrats office, and Dr. Finn has a small storage area down below there. I’ve been told that it only got wet once, it happened to be this year.”

When the application for the development is submitted, Brungardt will return to appear before the planning board for a public hearing. 

Planning board member Gail Ober said the development would be a great addition to the city, providing rental housing within walking distance to downtown.

“I think it’s a great idea,” Ober said. “If there’s no further commercial use for these properties and we can put some rental properties within a walking distance of downtown on our rolls, I think it’s a spectacular idea.”

Yerkes said developers are working on plans and would begin the project with vacant buildings. 

“We plan on starting on the vacant buildings, 394 and 390, we’re going to convert 394 to four residential units and 490 to four residential units,” Yerkes said. “The rent will be market rates, it will be an annual lease not seasonal and there’s plenty of existing parking. When we get around to a formal application we’ll do the parking calculations but I think residential will be a lot less intensive than commercials.”