If the state’s new buyer for the 217-acre former Laconia State School delivers what he’s proposed, the site would have a grocery store, medical offices, about 2,100 housing units and greenspace for outdoor yoga, concerts and a farmers market, according to newly released plans.

Michael Kettenbach’s 37-page proposal, one page of which is devoted to housing details, is heavy on aspirational vision.

“Every resident, employee and visitor is within two blocks of beautiful open spaces, offering recreational opportunities, a connection to nature and just a breath of fresh air,” read the proposal released Spt. 27 by Commissioner Charlie Arlinghaus of the Department of Administrative Services, which is overseeing the sale.

Kettenbach had not responded to requests for comment as of publication time. The plans Arlinghaus released at the media’s request are the public’s first look at his proposal. The documents show that Kettenbach made an initial offer in mid-July, withdrew it on July 25, and submitted the $10.5 million offer on July 30.

The Executive Council selected Kettenbach as the buyer last month from among six proposals the state received from four developers and a Lakes Region athletic group. Arlinghaus said the state did not consider the latter a serious offer because the group proposed the state pay for the $16.5 million sports and events complex it envisioned on the site.

The offer from Kettenbach, principal owner of Pillsbury Realty Development in Londonderry, allows him to walk away from the deal for up to two years in exchange for offering more than most other developers and an agreement to pay the state $500,000 in “earnest money.” Though, Kettenbach would get that money back if he walks away from the deal within the next six months. After that, the state would keep it.

Possible 10-Year Build

In the plans released Friday, Kettenbach estimated the project could take between 3½ to 10 years, depending on whether the site is developed at once or in phases.

The plan proposes 783 multi-family homes; about 400 three- and four-plexes; 280 townhouses; 100 duplexes; and about 160 cottage and courtyard units. It also envisions 250 multi-family homes for seniors and 20 “live work” units that are not described but appear to be units in an apartment building.

Commercial space in the build is listed as a 65,000-square-foot grocery store, 55,000 square feet of retail storefronts, 60,000 square feet of medical space, 40,000 square feet worth of small offices and a 125-key hotel clicking in at about 75,000 square feet. The proposal released by Arlinghaus also notes a 75,000-square-foot recreational facility.

Kettenbach told the state he will partner with City Collective, an international urban planning and design company.

City Collective’s plan splits the rectangular Laconia State School site up into three villages, separated by parks: a “mixed-use hamlet” closest to Laconia’s North Main Street containing the grocery stor3, 17 percent of the homes and 30 percent of the storefront space; a central “village center” containing a new Laconia City Hall and other civic buildings, 40 percent of the housing and retail; and a “wellness district” furthest out, containing apartments, a senior living facility, the medical office space and the balance of the retail space and housing units.

Each village could be built as its own phase, Kettenbach’s proposal states, while leaving some parts of the site undeveloped and marked for preservation or future phases.

Kettenbach is behind a similar mixed-use development in Londonderry, Woodmont Commons.

That 600-acre development is being built out on the site of former apple orchards in a number of smaller phases, anchored by a retail center and a village-style town center with apartments, retail and a stand-alone beer hall.

Chinburg, AP Lost Out

Kettenbach’s offer was not the first choice of Gov. Chris Sununu and Executive Councilor Joe Kenney, largely because he required up to two years to close. While Kenney voted to go with Kettenbach, he expressed concern that Kettenbach will start the multi-year project with retail and commercial development, not the housing Laconia city officials have said must be a priority.

“… I emphasized … that the city really needs housing and that is something it probably prefers up front,” Kenney told the Bulletin.

The other developers to make offers included:

The Hawthorne Development Group, based in Illinois, made two offers, one for $5 million that would close by the end of the year and a second $14 million offer with a longer closing period. Its mixed-use proposal was similar to Kettenbach’s, with a combination of housing, retail and commercial buildings, a conference center and access to recreational trails.

AP Affiliates in Nashua offered $5.75 million and proposed multi- and single-family housing, retail, a conference center and an agricultural barn for the University of New Hampshire. It would have closed a deal within a year.

Chinburg Development in Newmarket offered the state $5 million, up from its initial $3.75 million offer, with an agreement to close by the end of the year. Its proposal included a mix of housing and the possibility of age-restricted housing, assisted living, medical offices and nonprofit community space.

This is the state’s second attempt since 2021 to sell the property, which sits between two lakes and next to a state park but comes with expensive challenges, including 30 buildings that will need to be removed or heavily renovated and none of the water and sewer infrastructure needed.

The state’s first buyer, Robynne Alexander, of Manchester, backed out of her $21.5 million offer in April after financing fell through. An 18-month Bulletin investigation revealed serious questions about Alexander’s track record the state did not share with the Executive Council or Laconia city officials.

Alexander had been sued by multiple investors, gone through at least three foreclosures, and has a history of failing to pay property taxes on time. A month before the deal failed, the Bulletin reported that Alexander was under investigation by the Bureau of Securities Regulation, an agency charged with protecting investors against fraud.

This story has been republished from the New Hampshire Bulletin under a Creative Commons license.