COOS COUNTY COMMISSION APPROVES BALSAMS FINANCING PLAN
March 23, 2023
By Robert Blechl
Appearing in the Caledonian Record
Lancaster, NH
Approved Documents State First-Phase Redevelopment In Excess Of $270 Million
“Two days after unanimous approval from the Coos County Delegation, the Coos County Commission on Wednesday voted 3-0 to approve the financing plan for the redevelopment of The Balsams Grand Resort in Dixville.
The commission’s discussion and vote that lasted a few short minutes is the final authorization needed from the county for the financing plan.
County commissioners Tom Brady, Ray Gorman, and Robert Theberge approved a resolution for the creation of the Balsams Resort Redevelopment District, adopting the financing plan for the district, approving the issuance of up to $35 million in bonds for the district to be issued in the name of the county, and approving the imposition of special assessments within the district.
The approval is allowed under New Hampshire RSA 33:20, enabling legislation that authorizes a county convention to establish redevelopment districts in unincorporated places and issue redevelopment district bonds without financial risk or obligation to the county if a project does not succeed.
Under the financing plan, the Balsams developer is only prepared to undertake the redevelopment if the county created the redevelopment district and allowed the proceeds of the bonds to pay for a portion of the project.
The commission’s vote was contingent on the Balsams redevelopment being in the public interest and providing a public benefit, which is required by RSA 33:20.
According to the 4-page resolution adopted, the commissioners had to find that the project ‘will likely create, revive, or preserve employment opportunities or increase the social or economic prosperity’ of the county and that a revived four-season Balsams resort would serve as an economic engine for the state and county by creating new jobs and income for residents, generating additional economic development within the county and state, generating additional tax revenues for the county, attracting tourism and other businesses, and providing recreational facilities and activities for county and state residents.
According to the resolution, the commissioners approved a total financing plan in excess of $270 million for the first phase of what is called the ‘master resort redevelopment project.’
The money will include investments by the developer (the lead developer is Les Otten) and by third parties and investors who will develop, finance, and own discrete development projects within the master redevelopment plan.
Under the financing plan, the redevelopment district encompasses 8,187 acres and includes about 4,838 acres owned by the North Country Coos LLC, an affiliate of the developer, and about 3,349 acres under option by the developer.
According to the agreement, ‘It is a condition of the issuance of the bonds that the developer exercises its options to purchase the optioned parcels.’
The bond underwriter, which is expected to be Goldman Sachs, will resell the bonds to private buyers.
The county, whose role is administrative, is not responsible for principal and interest or debt service during the estimated 20-year period that the bonds will be outstanding.
Under the plan, only the developer’s property would be assessed and those assessments would be used to pay the principal and interest of the bonds.
RSA 33:30 lets developers receive an incentive through which the tax generated for a period of time is used to pay back some debt and the county will receive incremental increases in tax revenue.
First-phase Balsams redevelopment includes an expanded ski area (conditionally approved by county planners on March 15), a new Dix/Hampshire House, a new Lake Gloriette House hotel, a retail marketplace, and a Planned Unit Development of up to 4,600 lodging or residential units.
At the close of the Balsams agenda item on Wednesday, Otten said that there is a non-disclosure agreement in place between the county and a utility and there are some issues relating to it that he would like to discuss, but because of the NDA, those discussions would need to take place in a non-public session, which the commission voted to enter into.
During a site plan review hearing in February for the expanded ski area, Otten told county planners that NextEra Energy, owner of the 33-turbine wind park, has refused to participate in discussions with developers regarding a turbine near a planned ski trail.
Otten told planners that NextEra is not abiding by the terms of its lease, which requires the company to turn off turbines near trails during icing conditions so ice is not thrown from a turbine blade.”