Four proposals reviewed by a group of citizens and city leaders Tuesday evening were all to build neighborhoods with market-rate and near-market-rate housing — mostly rentals — on a 10.4-acre plot of land owned by the city on Old North Main Street.
The meeting, held at Lakes Region Mental Health Center, was the first opportunity the group had to open responses to a request for proposal published in the fall.
Lakes Region Community Developers, Kushner Studios, Anagnost Companies and Pennrose submitted responses to the city’s request by the Sept. 19, 2024, due date.
City leaders at the meeting expressed their thought that the best use of the land would be additional housing for those who work in, and would like to live in, Laconia.
Referring numerous times to firefighters, teachers and police officers, they’re concentrating their effort on bridging the gap between the upper-end of the housing continuum between “affordable housing” and market-rate housing, a subset some refer to as “affordable market-rate” housing.
“Certainly, housing in the City of Laconia — by all of the data that is available to us — would indicate that it is at a critical stage right now,” Mayor Andrew Hosmer said Tuesday.
Call for proposals
In September, the city published a request for proposals seeking input from developers on how best to use the property located at the intersection of Old North Main and Parade Road.
The city took ownership of the parcel, roughly 10 acres in size, in exchange for breaking a 99-year lease with the State of New Hampshire on a property on Meredith Center Road. The Old North Main parcel has access to city water and sewer, and is home to just one structure, a pump house.
“The state reached out to the city and asked if they would break the lease so they could put a new 911 call center there,” Hosmer. “In discussions with the city manager and, I believe, the city council at the time, we agreed that we would break the lease — in exchange for that, we wanted to own outright the 10-acre parcel on Old North Main Street. The state agreed to that and the city took possession of the property in 2021.”
At their Jan. 13 meeting, councilors approved a request made by Hosmer to create a committee — consisting of both city leaders and residents — to review the four proposal responses, which sat dormant until Tuesday evening.
“I understand the city has received four responses from people who are interested in perhaps following up with a request for proposals if we were to get to that point,” Hosmer said. “I say ‘if’ simply because, from my perspective, we have a real housing challenge. Does this property represent a solution to the challenge that we face? I think it might, but I’m not 100% certain.”
Here are details contained within the four responses received by the city:
Lakes Region Community Developers
LRCD’s response details the new construction of 36 rental units across three buildings which would mimic the aesthetic of traditional New England farmhouses with a main structure, attached ells and barns. Their proposed mix includes six one-bedroom units, 24 two-bedroom units and another six three-bedroom units.
“Multi-unit builds are more efficient to build and to operate than individual cottages, which contributes to long-term affordability for tenants,” LRCD’s response reads in part. “Multi-unit buildings also enable us to incorporate rooftop solar into projects.”
The proposals suggest total lot coverage for buildings to be constructed at about 1.20% — if the city were to request higher density, they could add a fourth 12-unit building to the site plan, bringing the total number of units for the project up to 48.
Their proposal notes the median family income in Belknap County in 2024 was $107,400, and LRCD would set rents to serve between 40% and 80% of area median income based on a four-person household. If the project were built on the date of their submission, they wrote, rent for a one-bedroom unit would range from $1,007 to $1,611; rent for a two-bedroom unit would range from $1,208 to $1,933; and rent for a three-bedroom unit would range from $1,396 to $2,233.
The proposal said while staff at LRCD would prefer to enter into an “option agreement” with the city to purchase the property, they’d consider a long-term ground lease, too. They intend to keep the project affordable for 75 years, at minimum — 32 of the units would be priced below market rate and four would be set at market. They’d also design a pedestrian crossing from the site, across Parade Road, to the proposed “Section E” of the Opechee Loop, a proposed continuation of the WOW Trail.
Kushner Studios
The proposal submitted by Kushner Studios includes 30 units with the “potential” for all to be priced below market rate. Of the 30 units, 18 would be two-bedroom duplexes priced at $2,100 per month, and up to 12 units would be either six four-bedroom houses at $4,100 per month or six three-bedroom houses and six accessory dwelling units priced at $2,900 per month. The ADU rentals would be priced at $1,400 per month.
Kushner Studios estimated their annual property taxes would be about $150,000, and the total cost to complete the project, including infrastructure, would be about $14 million. In their proposal they note the project would need tax increment financing “to remain affordable.”
At the March 4 meeting of the planning board, city Planning Director Rob Mora noted city leaders were in preliminary discussion regarding the potential addition of a fourth TIF district on the north end, the nexus possibly set at the intersection of Elm Street and Parade Road, not far from the 10-acre parcel which was the subject of the proposals.
The Kushner Studios proposal indicates they’d utilize “state of the art design” and construction, referring to the use of 3D printing technology.
Pennrose LLC
According to the letter of interest and statement of qualifications submitted by Pennrose LLC, they’d look to build a “village-style” development with small two-to-three-story, townhouse-style buildings positioned surrounding central greens, creating 60-70 individual rental units.
“This project represents a very special opportunity to bring diverse housing choice to Laconia in a way that maintains the character of a neighborhood while still having significant impact in tackling the workforce housing crisis,” their letter reads in part.
The development would support all levels of income, they say, with 60%-80% of units income-restricted and ranging in affordability starting at less than 30% and up to 80% of the area median income. There would also be some uncapped, market-rate units available.
Using United States Department of Housing and Urban Development figures on area median income, their proposal would likely result in rates as follows: income at 30% of AMI would range between $564 and $837; income at 50% AMI would range between $940 and $1,396; income at 60% AMI would range between $1,128 and $1,675; and income at 80% AMI would range between $1,580 and $2,350.
Anagnost Companies
The proposal submitted by Anagnost Companies is a “public/private joint venture partnership between an Anagnost/Greiner entity and the New Hampshire Regional Community Development Corporation” and Laconia Housing and Redevelopment Authority in order to “bring a diverse selection of housing to Laconia” to include low income, workforce, handicap accessible and possibly senior housing.
Their proposal was the largest in scale — approximately 240 workforce and low-income units. They’d be general occupancy with at least 10 units reserved at 30% of the average median income, at least 10 units at 50% of the average median income, 190 units at 60% of the average median income, 10 units at 80% of the average median income and 20 units at market rate.
All of those units would be Energy Star certified and include full appliance packages, countertops, flooring and central HVAC. They’d look into the viability of solar energy.
“It is our intention to provide supportive housing services and are requesting project-based vouchers through New Hampshire Housing Finance Authority,” the proposal reads in part. “We would propose to construct the project in phases and finance it through a combination of layered subsidies to include the land provided by New Hampshire Regional Community Development Corporation and Laconia House and Redevelopment Authority and tax credits through New Hampshire Housing Finance Authority.”
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