Councilors expressed a sense of urgency and careful optimism regarding the prospect of matching with a developer to design and construct permanent, market-rate and below-market-rate workforce housing on a city-owned parcel located in the northern part of the city at their meeting Monday, August 12.

The city is soliciting letters of interest and statements of qualifications from real estate developers regarding their capacity to design and construct housing on the property at the intersection of Old North Main Street and Parade Road, across the street from where the state proposed to locate a new 911 call center.

“This, as you recall, is a parcel of land that the city took possession of in exchange for breaking a 99-year lease for a parcel of land that we had leased with the State of New Hampshire off of Meredith Center Road,” Mayor Andrew Hosmer said Monday. “If I’m not mistaken, that land now is identified as the potential new 911 building.”

That property, which is just over 10 acres and has access to municipal water and sewer systems and abuts Route 106 and Old North Main Street, includes one existing structure: a pump house.

“One of the ideas in entering into this agreement with the state and taking ownership of this land was that it was, from my perspective anyway, more conducive to potential development of housing than the parcel of land on the top of the hill on Meredith Center Road,” Hosmer said.

“Enhancing the supply of housing choices, especially the supply of permanent, primary, year-round workforce housing options, is a priority of the Laconia City Council,” reads a draft request for information presented to the council by Hosmer. “In furtherance of that goal, the City acquired this property in 2021 with the intent of considering its future use for appropriate development, including housing options,” it continues in part.

Workforce housing, as defined by the draft, includes housing that individuals earning between $45,000 and $70,000 would be able to afford to lease or rent.

Included in the draft is a list of attributes which city representatives hope responses from potential developers may include: proposals weighted to maximize the number and percentage of the overall number of units of below-market-rate rental and lease units; those balancing density and preservation of green space; those congruent with the residential character of the surrounding neighborhood; those exhibiting thoughtful land use, creative site planning and architectural design; those that will integrate with future development of the WOW Trail; those that consider energy efficiency and may utilize renewable energy; those that encourage community interaction; and those that include infrastructure built to city specifications in anticipation of city ownership and maintenance.

City leaders say they’re particularly interested in responses that include those characteristics.

“It’s anticipated these housing units will be leased/rented and not sold. Ideally, this housing development will maintain the character of the surrounding area,” the draft reads in part. “Any selected developer should also prioritize building a collaborative relationship with relevant city departments and the surrounding residential community.”

During a discussion among city councilors, it was agreed and specified that language in the draft would be changed to include a phrase instructing developers to work with a group of residents who live in surrounding neighborhoods. Hosmer suggested Ward 1 Councilor Bruce Cheney and Ward 3 Councilor Eric Hoffman act as the council’s liaisons to any such committee.

The draft goes on to describe the city’s willingness to entertain proposals which include both the sale of the parcel or long-term land lease agreement and notes that, in order to ensure the parcel is developed according to the intentions of the city, a developer may be required to deposit monies into an escrow account until a certificate of occupancy is issued.

The draft also specifically references the Cottages at Back River Road development in Dover, a community of 44 energy-efficient, 544-square-foot homes which have been occupied by teachers, firefighters and municipal employees, among others.

The draft makes direct reference to the city’s need for housing for municipal employees.

“A specific challenge for the (City of Laconia) is the lack of housing for City employees,” the letter reads. “The city is particularly interested in creative approaches to housing for city employees in which the monthly lease is based on an employee’s salary.”