Pillsbury, city council to negotiate continued use of State School property following sale

LACONIA — Pillsbury Realty Development and the city could be taking a significant step toward the planned purchase and development of the former Laconia State School property at the council meeting on Monday night.

On the agenda for the June 9 meeting, which will begin at 7 p.m. at City Hall, is a memorandum of understanding between the development corporation and the city, pertaining to the former’s ability to pursue approvals for the mixed-use plan, to the latter’s obligation to improve roads, water and sewer lines and other infrastructure to serve the property, and areas where the two will share the costs of making such improvements.

The agreement also speaks to public use of properties such as Robbie Mills Sports Complex and Ahern State Park, as well as access throughout the property in the cases of a snowmobile trail, parking facilities, hiking trails and the proposed Opehee Loop extension of the WOW Trail.

The former Laconia State School property is owned by the state, which authorized the sale of the property to Pillsbury in September. Pillsbury’s offer for the 217-acre parcel, which has views of both lakes Opechee and Winnisquam, was $10.5 million. However, the purchase-and-sale agreement gives the developer up to two years to acquire the necessary permits and approvals to complete its development vision.

That vision, which was released in greatest detail in April, calls for a total of 2,050 residences ranging from apartments to single-family homes, as well as 375,000 square feet of commercial space, and 75,000 square feet of structures which could be used for public purposes, such as city offices.

The plan specifically calls for various uses of the commercial space, including medical, recreational and retail, up to a 67,000-square-foot grocery store near Parade Road.