State School sale on track to close in July

LACONIA — Pillsbury Realty Development, the group selected by the state to purchase the former State School property along Parade Road, said they anticipate closing the deal in late July, councilors heard Monday night during their regular meeting. 

“We still have to close on the land itself,” Kevin Smith, project manager of the Laconia Village development, said. “We don’t anticipate construction beginning, actual shovels in the ground, until probably the earliest would be at the end of [2027] but more likely in 2028.

“As we don’t own the land, we’re certainly not going to be moving any dirt around there, though that does not prohibit us from starting our Phase I design, which we plan to do in earnest,” he said.  

In July 2024, Pillsbury was awarded the project, following the state’s second attempt at striking a development agreement. The state would sell its land for $10.5 million.

Pillsbury staff started working with city planners immediately thereafter.  

In December 2024, Pillsbury held their first conceptual presentation before the planning board, and started the design review process before the technical review committee. It was November 2025 when they reached their first major milestone: city approval of their development master plan.

Their concept contains three core themes, Smith said: creating a vibrant civic life including myriad diverse housing, along with mixed-use commercial and retail; ensuring the development contains an “active recreational spirit”; and retain the natural environment of the land. The property is about 217 acres, but much will remain undeveloped.

The development will likely occur in five phases. The first phase, Smith said, would include their “mixed-use gateway,” with commercial and retail uses, a grocery store, and some of the expected 2,000-plus units of housing. Phase II will be heavier on housing development, Phase III on a civic campus, and phases IV and V on neighborhood trails and recreational areas within Laconia Village.

“This will not happen overnight, it will take many years to develop, but that’s our plan for this,” Smith said.

Documents and exhibits from their approved master plan are on file with the planning department, and can be accessed by the public.

Ward 5 Councilor Steven Bogert asked Smith to provide the city with a storyboard to erect in City Hall, so residents can view their plans. 

“If you think that’s a good idea, we think it’s a good idea,” Smith said.

There are a number of items which remain outstanding, Smith told councilors on Monday. They’ve got to see to the completion of a master plan traffic review by the state Department of Transportation, and complete the transfer of sewer membership from the state to the city. 

“With approval of the master plan, we’re looking to advance the Phase I of development, which will require DOT signing off on the overall traffic plan, as well as having a resolution to that sewer infrastructure issue,” Smith said.  

Ward 2 Councilor Robert Soucy said the traffic study is of serious concern to the council, particularly the intersection of Elm and North Main streets. 

“As this goes forward, just because we have approval of the master plan, that does not mean we can put shovels in the ground tomorrow,” Smith said. “We still have to come in with all of the individual site plans for each phase of this project.” 

Ward 3 Councilor Eric Hoffman, in referring to a moratorium on adding new addresses to service for natural gas in the Lakes Region from Liberty Utilities due to an apparent lack of capacity, asked Smith if those conditions will pose challenges to Pillsbury in moving forward with their development, and if they’re considering options for energy other than propane.  

“I think we’re going to look at all potential options that are on the table, not just propane,” Smith said. “That is my understanding as well, that this area will not be able to be served by natural gas until what, seven to 10 years, Kirk?”

“At best, yes,” City Manager Kirk Beattie replied.