Tax break sought for Elm Street development

LACONIA — The developer of a multimillion-dollar project in Lakeport has applied for a short-term tax break while the development is under construction.

Scott Everett is seeking tax relief during the construction of the $17.3 million Paugus Elm complex which is scheduled for completion in December 2023, according to an application filed with the city.

In the application, Everett’s agent Ron DeCola justified the tax break because the project will enhance the economic vitality of Lakeport, particularly in the area of Lakeport Square.

Four buildings along Elm Street between Railroad Avenue and Park Street, described in the application as dilapidated, were demolished earlier this year to make way for the 30,000-square-foot Paugus Elm complex which will have retail/commercial space on the ground level, with 20 apartments on the building's second and third floors. In addition, there will be a parking structure with 44 parking spaces.

"This project is conducive to the regeneration of the Lakeport area," DeCola said Tuesday. "It will certainly promote growth in that part of the city."

On Monday the City Council scheduled a public hearing for Oct. 12 on the request.

State law permits a municipality to freeze the property tax while a building project is underway if it is considered an economic benefit to the community. To qualify, buildings need to be located in a downtown, town center, central business district, or village center.

According to a memo to the council prepared by City Manager Scott Myers, the size and duration of any tax break is up to the council.

“If the (council) grants the tax relief, (it) shall determine the precise terms and duration,” Myers wrote.

Under the law, the council has to make a decision within 45 days of the hearing.

Last month, Everett sought a similar tax break associated with the restoration of the Lakeport Opera House, but the council turned down that request based on Myers’ recommendation that it did not qualify because the request was made after the project was largely completed.