Offer made to Buy Briarcrest Estates

By MICHAEL KITCH, LACONIA DAILY SUN

LACONIA — Almost three years after residents of Briarcrest Estates, organized as the Lakemont Cooperative Inc., purchased the manufactured housing park, they are weighing an offer to buy it from Hometown America Corporation, which also bid to buy the property three years ago.

Since the New Hampshire Legislature residents of manufactured housing parks were granted the opportunity to acquire their parks in 1987, 121 parks have passed into cooperative ownership and none have reverted to private ownership.

The offer was disclosed to residents at a meeting on Saturday morning and after some discussion, they agreed by a show of hands to meet with representatives of Hometown America Corporation in April, when summer residents have returned to the park.

"At the moment, it's going nowhere," Don Vachon, president of the Lakemont Cooperative said on Monday. .

Briarcrest Estates, which opened in 1988, stretches over 183 acres, divided between Laconia and Belmont, and consists of 241 home sites, 200 in Laconia and 41 in Belmont. The park is the third-largest property taxpayer in the city, with taxable property valued at $6.3 million.

In July 2013, the owners of the park, Mark and Ruth Mooney, tentatively agreed to sell the park to Hometown America for $10 million. In compliance with state law, the terms of the transaction were disclosed to the tenants, who had 60 days to make a counteroffer by presenting a purchase-and-sales agreement. The law requires the park owner to bargain in good faith with the tenants or their organization. The Lakemont Cooperative Inc. was formed and, with assistance from the New Hampshire Community Loan Fund, matched the offer from Hometown America Corporation. After some resistance, the Mooneys agreed to sell to the cooperative, which has owned and managed Briarcrest Estates since April 2014.

Following earlier discussions, Doug Minahan of Hometown America Corporation wrote to Don Vachon, president of of the cooperative, on Jan. 17, outlining the firm's offer. The company offered to retire the outstanding balances on a $8 million loan from TD Bank and $2 million loan from the New Hampshire Community Loan Fund as well as pay the prepayment penalty of $873,000 on the bank loan, closing costs and real estate transfer taxes associated with the transaction.

Hometown America Corporation pledged to honor all current leases, which provide that rent increases are limited to the rise in property taxes and inflation rate, along with any special assessment levied to fund improvements in the park. The company proposed raising rents from $435 to $455 in October 2017 and tying increases in rents for new residents to inflation, with a minimum increase of 3 percent and maximum increase of 7 percent. The company offered to invest $350,000 in improvement to the park in the first year of its ownership. At the same, the company said it would seek to have the park designated for those 55 and older as soon as possible.

Vachon insisted "It's an unsolicited offer, period. A fire-from-the hip proposal."

Meanwhile, he stressed that the Lakemont Cooperative is in sound financial condition, a judgment confirmed by several other residents familiar with the finances of the organization. Others acknowledged that some capital improvements will need to be undertaken in the near future, the cost of which will be borne by a special assessment on residents, but they noted that the annual operating budget together with any additional capital expenditures, must be approved by the members of the cooperative. And, they noted, a private owner, will incur the same costs and recover them by assessing residents.

However, several residents, who asked not to be identified, said there has been some turnover in the leadership of the cooperative and some dissension among its members as well as difficulty in recruiting volunteers to contribute to managing the park.

"It's like a little village with all its own quirks," Vachon remarked. "We have to tell them it's their park."

Briarcrest Estates is located at 100 Diamond Place, Laconia. (Google Maps graphic)