Now complete, agreement over Lakes Business Park dissolved

LACONIA — City councilors and Gilford’s selectboard last week sealed the deal on an agreement governing Lakes Business Park, a joint economic development effort located along Hounsell Avenue.  

In May 2001, an inter-municipal agreement was signed, governing the joint economic activities between Laconia and Gilford, related to Lakes Business Park. At Town Meeting last year, Gilford voters authorized their selectboard to negotiate a successor agreement with the City of Laconia for the industrial park.

Eliza Leadbeater, the first executive director of the Belknap County Economic Development Council, reflected upon the initial agreement, and the success the two municipalities found as a result.

“I’d like tonight to thank both Laconia and Gilford for working together on the launch of the park,” she said during a period open for public comment, during a council meeting Feb. 9. 

“What is very unique, and I want to congratulate both you and the Town of Gilford, is the two communities working together on a business park, it’s very unusual,” Leadbeater said. “I know, during my time, many of my colleagues across the state would say, ‘How did you pull that off?’ I’d like to thank all of those who served from both municipalities on the board.”

She said her hope is the occupants of the park, moving forward, form a group to collectively keep the city and town informed of any future needs.

The original agreement, dated May 15, 2001, made plain its goals: to “encourage the development and redevelopment of properties located within both municipalities by making improvements to infrastructure and utilities, and to establish a time frame for development.” That agreement was set contractually to terminate automatically upon completion of the “actions and responsibilities” detailed in subsequent section.

Following the communication of the will of the people of Gilford, made plain at Town Meeting, the two governments set out to negotiate a successor agreement. 

“The original one said 2050, Gilford wanted to do 2036 or 2040, so we went with the 2040,” City Manager Kirk Beattie said. “That is something you can adjust. I’d have to bring it back as part of the negotiations, but if that’s acceptable, I think 2040 is fine, I had no issues with that.”

During the Feb. 9 meeting, councilors voted unanimously to approve the successor agreement with Gilford, and authorized Beattie to sign all related documents. 

According to the amendment to the agreement, Gilford will continue to fund the capital replacement trust fund, for upkeep of or additional infrastructure with mutual consent from Laconia, so long as Gilford’s obligations are paused or capped when the balance of the fund hits $1 million. Gilford’s annual contributions are not to exceed $50,000. 

The parties agree Gilford will pay Laconia 25% of property taxes collected on the land and the buildings in Phase II of the park within Gilford, less the money to be deposited into the capital replacement fund. 

The amended agreement is effective Jan. 1, 2026, and will automatically expire and terminate as of Dec. 31, 2040, except for the balance of the trust fund, which will remain available until depleted. Laconia and Gilford leaders also agree to work together to develop a recreational trail system. Funds for the trail system will come from the trust fund and any grants, donations or other funding sources available.

Members of Gilford’s selectboard approved the agreement during a meeting on Feb. 11.

“The language, as approved, will allow us to sunset this agreement in 2040,” Gilford Selectboard Chair Kevin Hayes said Wednesday. “In the meantime, the money that is sent to them will be used first to fund the $1 million fund that will be used to build the trail system that was never built when the park was constructed, because there was not enough money.”