In early 2011, Plans for Hackett Hill Development Proceed, but Encounter Difficulties

 

A Letter Is Received

On January 14, 2011, the Lands and Buildings Committee received a letter from Jay Minkara, Economic Development Director for the City of Manchester. The letter said that the closing of Phase 1 of the Northwest Business Park would take place in the near future. It noted that the Manchester Housing and Redevelopment Corporation (NHRC) would transfer the 12 lot property to the Danais Realty Group.

At that time, an adjacent land parcel (Lot 13) was also under NHRC ownership. The letter stated that this land would ultimately be developed as a "Phase 2" project, as well as being used for a Job Corps Center.

Minkarah also noted that after the Phase 1 transfer was completed, that MHRA should also transfer the 300.9 acre parcel to the City of Manchester.

However, meanwhile, it appeared that the Danais development plans were encountering considerable difficulty.

 

Danais Access Problem

It appeared that the Danais Group would be unable to use the existing entrance to the property demarcated for development, since the right of way for it was owned by JPSA.

Another entrance point could be constructed via land owned by PSNH, but this approach would be costly. (It is interesting that this entrance was the one proposed in a much earlier plan for development of the property by the City).

On January 7, 2011, Richard Danais submitted a letter to Mayor Gatsas, noting that his costs paid to date for the new Right of Way Access had already amounted to $44.554.47 and that additional costs would amount to $201,400.

Danais notified the mayor that these costs needed to be addressed before further work could proceed.

Information about the additional costs was also sent to Ed Osborne, Chairman of the Lands and Buildings Committee by Jay Minkara. On January 18, the communication was discussed at the Lands and Buildings meeting and subsequently at a BMA meeting.

 

Problem Is Resolved

On Wednesday, February 2, 2011, the Union Leader reported that at the February 1 BMA meeting, by a 10-3 vote, payment of $225,000 would be made to the Danais Realty Group to cover the costs of changes in the planned entrance. The article noted that Danais and the City had tried to broker a deal for entrance to the property via land owned by JPSA, but had finally abandoned this plan and turned to another abutter of the property - PSNH - to construct an alternate entrance, thus explaining the additional cost to Danais.

A promissory note for the amount was arranged so that the City could use money from future land development on Hackett Hill to pay Danais. The city must pay the amount within 5 years.

Several aldermen, especially Alderman Ed Osborne, were skeptical of the new arrangements,

On March 19, 2011, the Union Leader reported that Danais was ready to break ground for the fire station on Hackett Hill Road and the 1st phase of the 1.2 million square foot "industrial and office park".

The article noted that the price tag for the fire station was potentially $72.000 higher than the original approval since the project had had to be rebid, although Danais opined that the station could be built below the estimate. He said he hoped to start construction in mid-April, 2011 and complete the work in the fall of the same year, as well as building the first phase of the "industrial and office park".

 

Final Plans

On May 28, 2011, another article about the City-Danais arrangements appeared in the Union Leader. It was reported that Danais had signed documents "earlier this month" for the formal sale of 126 acres of the Hackett Hill property for 2.8 million dollars.

In accordance with previous arrangements, the price of the land was affected by the cost of the new fire station that Danais had agreed to build at a cost of $2,367,643. Mayor Gatsas noted that grant funding had kept this figure low. Accordingly, the City should profit from the land sale by about half a million dollars and a new fire station.

The article noted that the construction of the fire station would begin within the next two weeks and be completed by Thanksgiving, 2011.

Jay Minkara noted that the "Northwest Business Park" may come to resemble a complex of buildings of warehouse, manufacturing, and office facilities on East Industrial Drive (an industrial park) in Manchester. Danais was involved in the construction of some of these buildings.

PART TW0