The state has agreed to give its chosen buyer for a $21.5 million Laconia land deal a third extension to close, but it’s unclear how many more delays it will consider if asked. 

The Bulletin reported Tuesday that the buyer, Robynne Alexander, asked on Monday to extend the closing scheduled for Wednesday to April 5 in order to secure a new lender after the original lender exited the project on Feb. 29.  

Alexander’s history of real estate problems, which includes repeated property tax liens, lawsuits from investors, and two foreclosures last year, has long been a concern for Laconia city officials and two executive councilors who voted against selecting Alexander as the buyer in December 2022. 

Alexander has also never led such a large redevelopment project. Her team said it plans to build 1,260 housing units, some for workforce housing and independent living apartments, on the 220-acre property that has housed a medium-security prison and the former Laconia State School. The plans also call for a 200-room hotel, conference center, dog park, retail, and medical offices.

Executive Councilor Joe Kenney, whose district includes Laconia, said Wednesday that history hasn’t given him pause. He remains “cautiously optimistic” the deal will close but wants Department of Administrative Services Commissioner Charlie Arlinghaus to come to the next Executive Council meeting March 27 with a firm closing date. 

Kenney said it’s not uncommon for major developments to run into delays, and he noted this one has been harder than most because several state agencies had to resolve questions about the deed and rights of way access for things like the public snowmobile trail across the property.

“I’ve said from the beginning that this has been a very complicated project,” Kenney said. “It’s been eight tentacles on an octopus times four.”

Arlinghaus said Wednesday that he thinks it’s possible but “not probable” Alexander and her team will secure financing before the March 27 meeting. But he is optimistic the financing will come through, saying, “I’m confident that in very short order they will secure alternative financing.” 

Asked Wednesday how many more extensions his office would grant Alexander, Arlinghaus said: “At the end of the day, April 5 is not a big deal. But later than that, like (they) said it looks like summer, that’s ridiculous. But I don’t know where the line is between that.”

Kenney doesn’t either and said it will ultimately be up to Gov. Chris Sununu to decide if and when to end negotiations with Alexander and look at other options. Sununu persuaded lawmakers three years ago to give him and the Executive Council sole authority to sell the property, saying that would speed up a sale by bypassing the state’s traditional voting process. 

“I’m going to leave it up to the chief executive officer of New Hampshire,” Kenney said. The governor’s office did not return a request for comment. 

Should the state look for a new buyer, Kenney said the work it’s done to resolve deed and other issues for this sale will position it well for another sale. Toward that end, the council approved signing a two-year lease with Alexander’s team should the sale go through to give the state time to relocate its  emergency 911 call center and the Lakes Region Mutual Fire Aid, which are using one of the buildings.

But Kenney said he doubts the state would get another $21.5 million offer. Three other individuals submitted bids to buy the property but offered half or less than half of what Alexander and her “Legacy at Laconia” team did. 

The state is requiring Alexander to pay cash at closing because it wants confirmation she has financing in place to determine whether extending the closing is worthwhile.

Alexander’s commitment from her first lender expired on Feb. 29, before the team could resolve issues with the deed. When the lender declined to extend the financing commitment, the Legacy team approached a second lender it planned to engage for the construction phase. 

Scott Tranchmontage, the Legacy team’s spokesperson said, “We are working very hard to finalize our funding process and close on the property as quickly as possible.”

The latest delay has concerned Laconia city officials, who are eager to see Alexander and her team deliver on their plans but have raised concerns from the start about her repeated tax problems and lawsuits. 

In an interview Wednesday, Laconia Mayor Andrew Hosmer said he was “very disappointed that we are looking at the postponement of the closing once again.” The city is desperate for the new housing the Legacy team has proposed, he said. 

Laconia city officials worked with state senators to use $3 million of the $21.5 million sale to help developers rebuild the water and sewer systems on the property, as well as other infrastructure, should it go through. The cost to ready the site for construction is considerable. 

Hosmer said the city is ready to continue that partnership.

“This is a transformation project … that brings hundreds of desperately needed housing to Laconia,” he said. “I just hope the buyer and the team can move this process along and close the deal.”