Planning Board gives new owner of FRM-involved development in Laconia extra year to get started

LACONIA — Just hours after ADROC, LLC, a recently if not hastily formed Rhode Island company, entered a purchase and sales agreement to acquire Appleridge, a planned housing development ensnared in the Financial Resources Mortgage, Inc. (FRM) bankruptcy, the Planning Board Tuesday night extended its approval of the project for another year.

Appleridge was owned by the Provencal Park Realty Trust, of which Attorney Phil Brouillard of Laconia and Susan Farah, the wife of Scott Farah, the principal of FRM who is serving time in federal prison for his part in the Ponzi scheme that defrauded some 150 investors of $23-million. Brouillard, together with the FRM bankruptcy trustee are listed as the sellers.

ADROC, managed by Jeffrey Karll, purchased the 15.3-acre tract for $115,000, outbidding Richard Anagnost, a Manchester developer who offered $100,000. ADROC agreed to post a $175,000 performance bond with the city, replacing the original bond, before the transaction is closed.

Representing ADROC before the Planning Board, Brouillard requested extensions for the completion of two apartment buildings on two separate lots as well as the extension of a water line from Apple Ridge Road across the two lots to Mile Hill Road.

Bruoillard is the principal of Mountain Lake Village, LLC, which since 2005 has pursued the development of an 81-unit subdivision on 49 acres on Mile Hill Road straddling the line between Laconia and Belmont. Approval has been granted for 63 units in Laconia and 18 units in Belmont.

The purchase and sales agreement with ADROC includes a provision entitling Brouillard "and/or" Mountain Lake Village, LLC to connect to the extended serving the Appleridge project. ADROC agreed to extend a 12-inch main to Mile Hill Road according to plans approved by the Laconia Planning Board and Laconia Water Works. Brouillard will retain an easement to enable the water line to be installed and maintained and a lien on Appleridge equal to the cost of completing the water line plus 20-percent against the the failure of ADROC to complete the project.