State gives Legacy until April 22 to 'put up or shut up' on Laconia property

CONCORD — The biggest real estate deal in the state, a $21.5 million transaction that would transfer 220 acres of state property in Laconia into the hands of a private developer and has been delayed multiple times, has less than a month to be consummated. A deadline of April 22 was shared Wednesday at the Governor and Executive Council meeting.

Charlie Arlinghaus, commissioner of the state’s Department of Administrative Services, told executive councilors the state had last week issued the prospective buyer an ultimatum: come up with the cash to buy the property or the deal’s off.

“We’ve put them on the clock and they have 30 days to put up or shut up,” Arlinghaus said.

The deal, in which developer Robynne Alexander would purchase the former Laconia State School property and develop it into mixed commercial, residential, professional and hospitality uses, was first scheduled to close in September of last year. However, the exchange has proven to be a complicated one, owing largely to the various uses the state government and general public have found for the land for generations, which have included snowmobile trails, a residential facility for people with developmental disabilities, and one of the state’s two 911 communications centers.

Some of the delays have been explained by the need to untangle complexities, such as negotiating access to nearby Ahern State Park, relocating a Department of Health and Human Services facility, or writing a lease to allow the 911 center to continue without interruption. The closing of the deal was pushed back from September to November, then January, and was set to close on March 13. However, just days before that scheduled closing, the buyer asked for yet another extension, this time due to the expiration of a lending offer to finance the deal.

The state’s patience is also soon to expire, and such exasperation is driven, surely, by revelations about Alexander’s existing real estate portfolio. As the New Hampshire Bulletin has reported, she has multiple properties in foreclosure, including one in Gilford, and is behind on tax bills for properties in Manchester.

Executive Councilor Ted Gatsas (District 4), who has been an outspoken critic of the proposed deal, confronted Arlinghaus during the meeting on Wednesday.

“With the rumors flying around, do we think we’ll actually close on it?” Gatsas asked.

“I think we’ll find out,” Arlinghaus responded.

Gov. Chris Sununu interjected, “The [22nd] is the firm date, it’s been sent in writing and acknowledged by the buyer,” he said, later saying Alexander has until April 22, “to come up with the money. That’s it.”

Alexander’s offer, through the corporate entity Legacy at Laconia, was selected as the buyer as it was nearly double the next highest offer when the state offered the property for sale. Almost immediately, though, questions arose about her current solvency, as well as her ability to tackle such a project, as it would be much larger than any other project she has completed.

A spokesperson for the project, Scott Tranchemontagne, said he couldn’t disclose the identity of their new lender, except to describe it as a private lending group that focuses on environment, service and government projects, real estate development and infrastructure.

“The Legacy team is working diligently with our new lender to finalize their process and secure the necessary funds to close the deal and transform this property into much needed housing for New Hampshire’s workforce, as well as community parks and venues, a retail center and a resort which implements universal design for barrier free accessibility,” Tranchemontagne said.

Mayor Andrew Hosmer said he would like to see the property put to productive use.

“I’m still hoping they can close and fulfill their promises of developing the land and increasing Laconia’s affordable housing stock,” Hosmer said.