Lakes Region Community Developers' plan for housing on Old North Main comes out on top

LACONIA — At the second meeting of a citizen committee tasked with reviewing proposals for development of a city-owned parcel on Old North Main Street, members expressed interest in hearing more from Lakes Region Community Developers about their vision for the property.

In September 2024, the city published a request for qualifications for a roughly 10-acre parcel on Old North Main, seeking input from developers regarding best uses for the property. The RFQ asked developers to submit ideas for constructing workforce housing to provide attainable homes for working people in the middle-income range, including teachers, firefighters and police officers, for example.

Four development groups submitted proposals in response to the solicitation: Lakes Region Community Developers; Pennrose; MADCO3D, Kushner Studios; and Anagnost Companies. Each proposal presented the committee with concepts for market-rate and near-market rate housing on the 10.4-acre parcel located nearby the expected State School property development.

Wednesday evening, in a conference room at Lakes Region Mental Health Center downtown, citizens of neighborhoods surrounding Old North Main, others from varying parts of the city and city leaders met to discuss the four proposals, which they’d viewed for the first time about two weeks ago. Following discussion, the only proposal which garnered support for further engagement and a presentation was that submitted by Lakes Region Community Developers. 

“I would love to hear from them what are the trade-offs, given their significant experience in building this range of different types of housing in different situations all around the region,” Jason Sproul said. “I would want to hear what trade-offs they think are most critical in order to make housing that is affordable to address the workforce — the high-end of the affordable range or the low-end of the mid-market or whatever it is, I would love to hear what those trade-offs are, because I think that will help us to both educate ourselves and the broader public and inform what we ask for.”

LRCD submitted their letter of interest in response to the RFQ on Sept. 19. Staff note in their qualifications statement that, since 1988, they’ve managed to develop high-quality, affordable rental housing throughout the Lakes Region. The organization owns and operates a $60 million real estate portfolio of 365 units between Laconia, Ashland, Gilford, Meredith, Tilton and Wolfeboro. 

The LRCD proposal details the new construction of 36 units of rental housing across three buildings, to include a mix of six one-bedroom units, 24 two-bedroom units and six three-bedroom units. They suggest, in keeping with the character of the surrounding neighborhood, two-story buildings to mimic New England farmhouses with a main house, attached ells and barns. 

“The principle of progression would say that the neighborhood that is there would push up the value of this neighborhood as it develops,” Bill Milner said. “If you build what we’re talking about — something that fits in — it will only increase the value because of the adjoining neighborhood. If you do it the other way, it brings it down.”

Total lot coverage of the proposed buildings is approximately 1.20%, not including driveways and parking. They’d be able to increase density by way of a fourth building, a 12-unit structure, increasing the total number of units to 48, if city leadership so desired. 

Noting the median family income in Belknap County was $107,400 in 2024, LCRD proposed the income range for tenants would be approximately 40% to 80% of area median income by family size, which may allow renters with a variety of income levels to live in the development. On the low end of the range, a single person with an income of $30,800 and on the high end, a four-person household with an income of $85,900, according to their letter of interest.

If rents for the development were set the day their letter was submitted, rates would include: $1,007 to $1,611 for a one-bedroom unit; $1,208 to $1,933 for a two-bedroom unit; and $1,396 to $2,233 for a three-bedroom unit. LCRD would prefer to enter into an option agreement with the city to purchase the land, but would consider a long-term ground lease. They’d keep rents low for 75 years, at minimum, they say.

“I think they certainly have the qualifications and they put together a good proposal,” Ward 3 Councilor Eric Hoffman said. “I have some questions, I think, aesthetically, about the buildings and the density.”

The committee will seek to hear a presentation on LCRD’s vision for a potential development project in April.