Gunstock commission to give money to Belknap county

LACONIA - The Chair of the Gunstock Area Commission said yesterday that it intends to continue paying some money to the county coffers even though its formal agreement to do so expires at the end of this year.

Chair Howard Chandler met with Belknap County Commissioners yesterday morning and said he didn't know the amount but said it would be at least the $150,000 previously mandated annual contribution.

"We want to move past some symbolic amount," Chandler said.

The Gunstock Commission entered into a memorandum of understanding with the County Commissioners in 2000 to pay $150,000 to the county plus a percentage of gross annual income above $6 million.

In exchange, the county agreed to wipe out $6 million of the $8 million outstanding debt created when Gunstock borrowed $10 million for capital improvements in the mid 1980s.

"We have made our final debt payment," said County Administrator Deborah Shackett who said the debt retired on schedule this year.

With the debt retired and the memorandum of understanding set to expire at the end of the year, Gunstock owes no legal obligation to pay anything to the county. Conversely, the county taxpayers hold no obligation to satisfy any of Gunstock's still-existing debt, including the balance of the $2 million of old debt assumed by Gunstock as part of the 2000 agreement.

Although he was not scheduled to appear before the Commissioners yesterday, Chandler agreed at the last minute to come in to help the commission answer some questions about the revenue side of the 2011 budget that has been the subject of two days of consecutive hearings.

"After we finished with the [Belknap County] Nursing Home Thursday afternoon, we started looking at revenue where there is a gaping hole of $150,000," Shackett said.

She said the commissioners didn't want to wait to find out if there would be any 2011 revenue from Gunstock and tasked Chair Christopher Boothby with contacting Chandler for some answers.

When Chandler said he was available early Friday morning, Boothby contacted Belknap County Delegation Chair Alida Millham of Gilford who also was able to attend yesterday's meeting.

Chandler said the Gunstock Commission has been having regular discussions about its future financial relationship with the county and "knowing it can never go to the well again" decided it would be a good-will gesture to continue to pay some money to the county.

He said the Commission also realizes that Gunstock is one of two county enterprises that functions like a private organization, the other being the county nursing home.

Commissioner Ed Philpot disagreed to a degree. Agreeing that both Gunstock and the nursing home are "unique assets" he said they differ considerably because Gunstock serves a limited population of the willing while the nursing home serves a vulnerable population.

"Gunstock is not a place you have to go," he said.

Philpot also gently reminded Chandler that the "full faith and credit" of Belknap County is still behind Gunstock.

"Don't say 'never,'" he said. "Never is a very long time."

"I say 'never' because if we can't run it right, then it should be sold," replied Chandler.

"Let me cut to the chase," said Boothby to Chandler. "I can assume that without committing the [Gunstock] Commission to anything, you are saying there will be a fee paid back."

"Yes," said Chandler. "Not just a symbolic amount but a greater amount."

"We felt it needed to be significant, but not so great that it would inhibit any ability to reinvest in infrastructure," continued Chandler.

"I think this statement of yours shows a lot of good will," Boothby said.

"Well, even with the ability to function autonomously, we are still part of the county," Chandler said.