Business Finance Authority Application Background | The Balsams Resort

Business Finance Authority Application Background

The Balsams redevelopment project has secured the majority of required permits and to date has more than $26 million worth of real estate pre-sales sales under deposit.

Neither the State of New Hampshire, nor the NH BFA, are being asked to provide funds for this project. Under the current application, Service Credit Union will be issuing the loan, based on its independently-conducted diligence and underwriting process. The NH BFA’s review and analysis will result in whether to recommend a credit enhancement to the Executive Council. The Executive Council will then consider and vote on the NH BFA’s recommendation.

Included in the NH BFA application are a work force study commissioned by PolEcon Research and an appraisal/feasibility study by CBRE Hotels on the value of the improvements that will be made to the Balsams’ property, and the overall feasibility of the redevelopment plan presented.

The work force study concludes that there is sufficient available labor in the region to meet the staffing needs of the redeveloped Balsams Resort. It determined that the project will have a positive impact on workers in the region and provide a number of public benefits, including:

• Putting people to work – The Balsams Resort will increase the size of Coös County’s labor force and raise the below-average labor force participation rate, especially among younger, working-age residents.

• Job diversity – The Balsams Resort will create 600 construction jobs during Phase 1. Once operational, the Balsams Resort will employ roughly 400 people with the potential of creating more than 1,500 jobs once the build-out is complete, as well as indirect jobs in the communities around Dixville.

• Good wages – Wages will average more than $17 per hour and the median wages are above the median for all of Coös County.

The CBRE study states, “Based on the detailed market analysis performed herein, there is absolutely no question that a market exists for the creation and operation of an upper upscale/luxury, four season resort on the grounds of the subject property. Equally important to note is that there is sound reason to believe that the for-sale real estate components as contemplated herein as part of Phase 1A and 1B, will be received well in the marketplace.”