Town officials and developers have taken a step closer toward a possible massive redevelopment of the old Hampton Beach Casino into a more than 1.2 million-square-foot conference, entertainment and hotel complex.

The Hampton Board of Selectmen unanimously voted last month to enter into negotiations to sell or lease D Street to developers Sal Lupoli and Freddie Schaake, who say taking over the roadway will allow them to build one continuous complex at the 7.5-acres site.

Developers have estimated the entire project – which also would include housing, restaurant and retail components – could end up costing $400 million to $600 million. No formal plan has been filed yet.

Town Manager Jamie Sullivan is spearheading the D Street negotiations with Lupoli and Schaake. If a deal is struck between the two sides, the agreement must still be approved by Town Meeting voters in March.

Both sides appeared optimistic a deal can be reached.

“We’re hoping to have clarity on D Street over the next three weeks or so,” Lupoli said in an interview. “We’re optimistic.”

Year-Round, Modernized Draw

Sullivan declined to discuss the now-ongoing negotiations. But he said town officials are generally “excited” about the proposed project and want to see it work best for everyone.

“The [project] could provide some great benefits,” Sullivan added.

Besides the jobs created by such a massive project and the redevelopment of a now partially run-down property first built in 1899, a modernized venue with conferences and entertainment components could help make Hampton Beach a year-round destination place, Sullivan said.

“It has some very, very strong support, but it’s still very conceptual right now,” Sullivan stressed.

Lupoli said he’d like to submit an official development plan by the end of this year, though he said there’s no set schedule.

While developers strongly prefer gaining developmental control of D Street, Lupoli signaled it’s not necessarily a project-killer if a sale, or lease, agreement isn’t reached.

“D Street makes it a better plan, but I’m more interested in doing a development there that makes everyone happy,” he said. “We want to work with the town of Hampton. I’m very, very happy with the direction we’re going.”

1.3M SF Planned

With D Street in a final plan, the project’s size could end up being “north of 1.2 to 1.3 million square feet,” depending on final height and density approvals, said Lupoli.

He didn’t say how much smaller the project might be if D Street isn’t included in a final plan.

While an official redevelopment plan hasn’t been submitted yet, a key to the project, besides building enough meeting and entertainment space, will be constructing a large enough hotel to accommodate overnight conference attendees and other visitors to Hampton, Lupoli said.

“A hotel needs to be north of 200 rooms,” he said.

As for housing, there’s no agreement on the number of units that might be built. But the complex will definitely have a residential component, Lupoli said.

“We’re going back and forth on that and other issues,” said Lupoli of preliminary development talks with town and other local officials.

As for making Hampton Beach more of a year-round destination place, Lupoli noted the vibrancy of nearby Portsmouth during the winter months – and he said the same thing could happen in the waterfront area in Hampton.

He expressed hope that a revitalized Casino complex will spur other Hampton Beach businesses to invest in their own properties.

Biz Groups Supportive, But Have Concerns

John Nyhan, president of the Hampton Area Chamber of Commerce, said the Hampton business community is excited about redeveloping the old Casino – and making the beach-front area more of a year-round draw.

“It brings a lot of excitement and opportunities to our business community,” he said. “And it’s not just for the town of Hampton. It’s also for the entire Seacoast area.”

While the business community is generally supportive of redeveloping the old casino, Nyhan said there are still “challenges ahead,” particularly when it comes to making sure future construction doesn’t disrupt existing businesses on Hampton Beach.

“You can’t be building something on the waterfront in the middle of summer,” he said.

Extensive discussions will be needed to determine “what can and can’t be done during the beach season,” he said.

Members of the town’s Board of Selectmen have sounded enthusiastic about the overall concept of redeveloping the old casino, according to published reports.

“The building is tired. It needs help,” said Selectman Chuck Rage, a hotel owner on the beach, according to the Portsmouth Herald. “The older buildings [in the area] are put together with duct tape and super glue, zip ties.”

Selectman Rusty Bridle has said the entire project could be a “game-changer for this town and a game-changer for the whole state.”

Lupoli agreed, saying he envisions a transformative project along the beach.

“It’s a great community project,” he said.