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Hampton Beach Casino redevelopment: Town eyes D Street deal for ‘game changer’ project by NH Business Review for Max Sullivan/Portsmouth Herald

Hampton Beach Casino redevelopment: Town eyes D Street deal for ‘game changer’ project by NH Business Review for Max Sullivan/Portsmouth Herald

Early conceptual designs for a future redevelopment of the Hampton Beach Casino complex which owners say they hope will turn the facility into a year-round destination. (Courtesy of the Town of Hampton)

Town officials are beginning talks with the owners of the Hampton Beach Casino about a price for leasing or buying D Street as part of their vision for a $400 million to $600 million hotel, convention center and entertainment venue.

The Select Board voted 5-0 Monday to have Town Manager Jamie Sullivan enter negotiations with Casino owners Sal Lupoli and Freddie Schaake, and their engineer Rick Friberg, on the transfer of D Street by lease or sale. If terms can be met, the question of whether to execute the purchase or lease would go to Hampton voters at the March 2025 Town Meeting.

Eliminating D Street would allow the owners to span their Casino redevelopment from F to C Street without interruption.

Lupoli and Schaake are looking to turn the Casino and its surrounding properties into a hotel, convention center, and entertainment venue with retail and restaurants.

Currently, the Casino complex runs from F to D Street, E Street having been eliminated at the time of the building’s construction 125 years ago.

Across D Street, several popular businesses operate along Ocean Boulevard including JB’s Seafood and Blink’s Fry Doe. It also includes the former waterslide park which has since been removed, as well as restaurants like North of NOLA, Farr’s Famous Chicken and Swell Oyster Company’s Shuck Shack. The Singing Church on the northern corner of D Street and Ashworth Avenue and the Candy Corner on C Street and Ocean Boulevard are the only two properties not owned by Lupoli.

Monday, the developers showed Hampton selectmen a preliminary sketch of the project, which would move the building several feet back from the road to make room for various courtyards, walking space and an outdoor dining area. It would also include more seating for the complex’s concert venue as well as a parking garage with space for more than 1,000 vehicles.

Their hope is to make the Casino a year-round destination, a goal long sought by business owners at the beach. Friberg said the project’s size and ability to host many commercial tenants would make it easier for the Casino to go year-round before any smaller businesses on the strip might.

“With a property like this, as big as it is, we want to be the one that goes first to be year-round at the beach,” Friberg said. “Because of this project, there’s enough critical mass to do that.”

Selectmen praise Hampton Beach ‘game changer’ project

The Casino complex was built in 1899 with additions made over the years. Today, its owners say the time has come to replace it.

“I think it would be a game changer for this town and a game changer for the whole state,” Selectman Rusty Bridle said.

Selectman Chuck Rage, a longtime hotel owner at the beach, said he understood the need for the building to be addressed.

“The older buildings are put together with duct tape and super glue, zip ties,” Rage said. “The building is tired. It needs help.”

Friberg said currently the redevelopment plan incorporates the closure of D Street.

Prior to that, however, the value of D Street needs to be determined, along with possible benefits or detriments to the town and beach if the short one-way street from Ashworth to Ocean Boulevard is eliminated. The board decided Sullivan should determine a dollar value of the roadway, hold discussions with the developers, and then report back to the board at a future meeting.

Once that’s done, board members can decide if they will or will not add the question to the March warrant for voters, and also if they’ll lobby for it if they do.

“At what point would you be the folks who would be advocating to our voters to say, ‘We think this is a good deal,’” Sullivan said.

D Street used to play a crucial role in the town’s municipal operations before the current police station was built. At that time, a traffic light just north of D Street provided emergency vehicles with access. However, since the police station moved to Brown Avenue, the street is no longer essential for emergency access. Today, the intersection with Ocean Boulevard remains a “challenge,” according to Sullivan.

“As traffic comes out that way, it’s a touchpoint with pedestrians,” Sullivan said.

Casino owners: Project will move forward with or without D Street

Friberg indicated the developers’ interest in buying or leasing D Street was contingent on the terms of the deal as well. He said lenders will have to determine whether they are comfortable with the price offered by the town.

Time is also an issue for the Casino project, he said, with building expected to take three to four years. Waiting until after the March 2025 vote could mean a significant delay in getting started. The project still needs to go through the Planning Board process, as well as potentially the Zoning Board.

“We could use it or not use it,” Friberg said when pressed by Selectmen Chair Amy Hansen on whether he, Lupoli and Schaake were definitely pursuing a lease or purchase of D Street.

“I think if it’s something the town’s interested in and motivated to help accomplish, then yes,” Friberg said. “If it’s on us to go accomplish it, then maybe not.”

Friberg still pitched the value a deal would bring to the town if the project could include a takeover of D Street. He said more square footage to be assessed by the town will result in more tax revenue.

“No matter where we land for lease and sale, there is this increase, this incremental increase, in revenue through property tax,” Friberg said.

Reporter Angeljean Chiaramida contributed to this story.

This article is being shared by partners in the Granite State News Collaborative. For more information, visit collaborativenh.org.

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