State School sale further delayed, council to approve transfer of ownership of sewer system

LACONIA — Council will vote on entering an agreement with Pillsbury Realty Development to transfer ownership of the obligations of the Laconia State School property’s portion of the Winnipesaukee River Basin Program sewer system. This includes infrastructure maintenance and footing the bill.

The WRBP, a state-owned sewer system, is made up of 10 communities, plus the State School property. The communities — Center Harbor, Franklin, Gilford, Laconia, Meredith, Moultonborough, Northfield, Sanbornton and Tilton — are pushing for a regional authority versus state oversight. In August, the majority of member communities voted to reinforce support for a new governing body.

A study commission met this fall to assess the idea. Their determination will be made available to the public soon.

Following a public hearing June 23, 2025, the Laconia City Council voted 5-0 to enter into a memorandum of understanding for sale of the property with Pillsbury, including the sewer system.

“Following Developer’s acquisition of the Property, the Parties agree to work cooperatively to facilitate the transfer of the Property’s dedicated allocation to the City of Laconia through written agreement approved by the City,” reads the agreement. “Developer will agree to contribute to costs associated with WRBP membership to the extent that such costs are not offset by user fees generated by the Project. Developer will fund the entire cost of the connection to any sewer pump station. Developer shall install all sewer infrastructure to accommodate the Projects maximum capacity at full build-out and shall provide the City the option to pay for any additional increase in cost to install more infrastructure than what is required for the Project.”

The city will be required to reimburse the state for all prepaid WRBP costs for usage during the quarter which were accrued after the closing of the sale. Any unpaid obligations not due yet as of the closing date, including those that may also be payable and in arrears, will be advanced to the city by the state.

According to the staff report in the council packet, there’s no fiscal impact.

“With this Assumption Agreement, the City of Laconia will assume the [WRBP] capacity of the State School property and bill accordingly,” City Manager Kirk Beattie wrote Friday, in an email. “I would not expect much capacity/flow until the buildout begins.”

Closing on the State School property, originally expected at the end of August, has yet to happen. A suspicious fire, on June 14, at the property has delayed an environmental study needed to move forward.

“The fire, and subsequent clean up that occurred there in June, delayed the closing so post-fire environmental testing could be conducted,” Beattie wrote. “The latest information I have is that the closing is still planned to happen within the next two months.”

Once the property is closed on, building Phase I will start, beginning with a “mixed-use gateway” along Parade Road. During the city manager’s projects update portion of the meeting, Beattie will provide additional information on the progress of the sale.

A request to authorize Mayor Mike Bordes or Beattie to sign a new lease at the airport in Gilford will also be voted on.

An open lot at 74 Airport Road creates an opportunity for the city to enter a lease agreement with no incurred costs. According to documents in the council packet, “the revenue generated by the new lease agreement is payable to the Laconia Airport Authority and is applied to the operating budget of the airport.”

Finally, after two public hearings, the council will take a vote on whether or not to approve a grant and separately, approve changes to the solid waste ordinance.

A $500,000 grant from GO-NORTH Foundations for Healthy Communities would expand and improve the mobile integrated health program of the Laconia Fire Department.

“What this grant will do is allow us to grow that program, and have the potential to bring it to other communities around us,” said Beattie at the last council meeting.

The community paramedic program has provided “proactive, in-home care,” intended to reduce emergency department visits, and bridge gaps for the most vulnerable in the community. The grant is for one year, but the city can apply on an annual basis to “re-up” for $500,000 per year, for five years. No match is required.

The proposed motion states Beattie will be authorized to accept and spend up to $500,000 for each of the next four years of the program, if the fire department applies for the funds.

Changes to the solid waste ordinance, largely surrounding refuse and household waste collection, solid waste flow control, and dump and disposal fees, are up for vote.

Article 1 updates surrounding refuse and household waste collection are due to changes in other city ordinances and state laws and regulations. This largely includes the definition of an accessory dwelling unit, the disposal of lithium-ion batteries, properties ineligible for curbside trash pick-up, changes to the bulky item collection schedule, and the discontinuation of allowing commercial businesses to use the cardboard collection site on Messer Street.

Article 2 updates about solid waste flow control are due to changes in other ordinances and transfer station operational procedures and policies. This includes updating the acceptable waste definition used by the transfer station, and changes to what’s considered a “hauler,” generally a vehicle over 2,000 pounds. The current language does not consider that many residential pick-up trucks weigh between 4,000 and 6,000 pounds.

Article 3 updates focus on the evaluation of dump and disposal fees due to increases in the cost associated with disposing of solid waste brought to the transfer station.

According to the staff report, “If these changes are not approved, more General Funds will have to be used to operate the City’s solid waste program.” Public works department staff recommend the council pass the changes to the ordinance.

Council meets at 7 p.m., Monday, Oct. 26, at City Hall.