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Tax exemptions wanted for solar, wind

Hooksett Editor — Wed, 25 Feb 2009 19:51:00 GMT

BY LAUREN SAUSSER

Hooksett resident Lee Scott wants to reduce his carbon footprint and his energy bills – that is, as long as his property taxes don’t skyrocket in return.

That’s why Scott has been working tirelessly with the Hooksett Town Council to pass a local ordinance that would provide property tax exemptions for renewable sources of energy like solar panels, wind turbines and wood-burning stoves.

“I am going to start out small with my solar system,” Scott said. “It will be a fixed 2,000- watt system, which will cost me around $18,000 to construct. I will be doing the installation myself to save around $10,000, but I’m probably one of the few who could accomplish the task on their own.”

Anyone who invests in such an expensive initiative to be green should be offered a property tax break, he said.

Town Assessor Todd Haywood said his office does not currently assess solar panels, if they exist, on Hooksett homes.

If the Town Council passed an ordinance that would exempt potential users from paying extra on their tax bills, it would require Haywood’s department to assess the homes with solar panels and then to deduct that added value from the final bill.

That process could take upwards of five years, he said, which would not necessarily be a problem, he added, because the town is currently beginning a new five-year cycle of revaluations anyway.

At a Town Council meeting earlier this month, some councilors expressed the idea that passing the ordinance would be unnecessary since Hooksett currently ignores the existence of solar panels anyway.

“The town would have to start assessing something we currently don’t assess to accommodate this request,” said Town Councilor David Ross. “I think it’s almost a moot issue until the day we decide to start assessing these things.”

Town Councilor Paul Loiselle said that because the town is not assessing the different sources of renewable energy technologies, the process of adding them and then exempting their values from town property cards seems time consuming.

“It’s kind of redundant, isn’t it?” Loiselle asked.

But Scott isn’t willing to spend almost $20,000 on a series of solar cells when the town could potentially turn around and increase a tax bill that he says is already hard enough to pay.

“Do I take a chance and spend $22,000 to $25,000 this year and see if they keep up their current practice?” Scott asked.

He doesn’t have the answer yet. Neither does the Town Council, which has indicated it will revisit the topic at an upcoming meeting.

Property tax break sought for autistic man

Hooksett Editor — Wed, 25 Feb 2009 19:36:00 GMT

BY LAUREN SAUSSER

Dennis Couture may not have the ability to speak, but that’s not keeping his mom and dad from speaking out loud and clear for him.

“Dennis never worked and never will work. He is at the mercy of everyone and everything,” said his father, Albert Couture, describing his son, 35, who is a nonverbal autistic adult.

Albert and Jannette Couture, both Manchester residents, are fighting to get a Hooksett property tax exemption for their son, who owns a condominium in Hooksett.

The council did not pass an exemption but approved a motion that will allow for property owners with physical or development disabilities to apply for a hardship abatement. Councilors said this process will allow the board of assessor to review each request for property tax credits on a case-by-case basis. Richard Boulanger, a friend of the family, said Dennis Couture’s income is extremely fixed.

He was able to purchase the condo in Granite Hills in Hooksett in May 2008 through a state program called Home of Your Own, which no longer exists.

After making his mortgage payment, paying his bills and meeting other financial obligations, Boulanger said Dennis’ food budget is less than $7 per day. He spends less than $100 on clothes for an entire year. Meanwhile, his Hooksett property tax bill is nearing $4,000 annually.

“As property taxes and all the other things – those are challenges for him, just like any other homeowner. But he doesn’t have the ability to go get another job,” Boulanger said. “He could lose his home because the budget that he receives does not change. He only gets $7 a day for food – that’s not a lot of money.”

Fighting for the property tax credit was a crucial step in ensuring Dennis Couture can remain in his home.

“It’s important for Dennis – it’s important for all individuals with developmental disabilities – who have struggled with independence and trying to become a part of this community,” Albert Couture said.

Boulanger and Albert Couture agreed that Dennis, who has been transferred between institutions for the majority of his life, is much happier situated in his permanent residence with around-the-clock professional care. They are both committed to making sure he stays put.

“He is happy there. He is a different boy. He is a different man,” Albert Couture said.

While rate is lower, property values are higher, pushing bills up

Hooksett Editor — Wed, 03 Dec 2008 19:35:00 GMT

BY GINGER KOZLOWSKI

Hooksett’s tax rate is 8 percent lower than last year’s rate. However, due to revaluation of the town’s properties, many homeowners are likely to see a higher tax bill just in time for Christmas.

The current rate was finally set on Wednesday, Nov. 26, having been delayed several weeks by the revaluation process. Bills were expected to be mailed out in the following week, said Evelyn Horn at Hooksett Town Hall.

The new rate is $20.82 per $1,000 of property value, while last year’s rate was $22.68.

The town portion went down by 79 cents, from $6.20 to $5.41. The local school portion was reduced by 57 cents, from $11.21 to $10.64. The state school portion shrank by 60 cents, going from $2.72 to $2.12. The county portion is the only segment that saw an increase, going from $2.55 last year to $2.65 this year.

The total amount of money to be raised in Hooksett after voting last spring is $33,088,441, said Christine Soucie, finance director for the town of Hooksett.

That’s $3,215,955 more than last year’s amount of $29,872,485, a 10-percent increase in spending.

Lower rate, higher bill
Will this mean a lower tax bill? With property values reassessed, it may not. If a home were assessed at $225,000 last year, that property owner would have received a bill for $5,103.

If that home is now assessed at $278,800, the property owner would receive a bill for $5,787.96, a $684.96 increase, or 13 percent higher.

Compounding the problem is that the spring bill is based on half the previous year’s bill. The current bill is more than half because it makes up for what wasn’t paid in the first half.

A homeowner would see a reduction in the tax bill only if their property stayed the same in value or was reduced in value. In a typical revaluation, one third stay the same, one third go up and one third go down.

Values in Hooksett were assessed as of April 1, so dropping market values may not have been reflected.

Town clerk and tax collector Leslie Nepveu said she’s been getting a lot of calls from people wondering if their bills are correct, even from businesses.

She noted that Target’s bill, which was $120,368 for the first half of the year, jumped to $215,993 in the current bill. RK Associates, which owns the plaza with Kmart and Dollar Tree and which has been flooded several times, went from $47,930 to $128,087.

She said they called to say, “How can you say it’s worth that when it’s under water all the time?”

Residents react
Jeff Lebreque and his family all live in Hooksett.

“Everyone I know, their bill went up $800,” he said. “It just doesn’t make sense.”

He questioned where the money is going more than his property value.

“My pet peeve in this whole thing is they always do this right around the holidays,” he said. “I budgeted for my tax bill to be this much. Now it’s (up) more than $800?”

Chris Pearson lives near Heritage Estates, and his property tax also rose by about $800. “My property value went up pretty substantially, but I thought the tax rate would go down to offset it,” he said.

Pearson is a member of the Hooksett Zoning Board, but still doesn’t see where all the money is going.

“If I knew where this money was going, I wouldn’t have a problem, but I don’t know where this goes,” he said.

James Sullivan, a School Board member, said he is OK with his tax bill, but wonders why the value of homes has increased so much with the mortgage crisis and the economy.

“What I have heard is: Why are the houses’ values increased so much in a time when, nationally, home values have decreased? It’s all so confusing.”

Ronald Dion saw an increase of $300 in his tax bill, but doesn’t blame local government.

“I don’t believe we should complain when we are the ones who elect representatives who pledge to keep the same antiquated levy,” he said. “As a result, we continue to underfund our departments and are failing to maintain our infrastructure.”

Some cuts made
A good half million dollars were cut from this year’s school budget, according to School Board Chairman Maura Ouelle.

“We did return $505,950 to the taxpayers of the town from the 2007-08 budget cycle, which is reflected in part by what we see for a rate this year,” she said.

Late tax rate means borrowing money

Hooksett Editor — Tue, 25 Nov 2008 19:35:00 GMT

BY LAUREN SAUSSER

The town of Hooksett may be forced to borrow $6 million to pay off its pending financial obligations if its taxpayers choose to wait until the last minute to pay property taxes this year.

The Town Council voted Nov. 19 to authorize the administration to seek a tax anticipatory note in case the bills it owes are due before sufficient property tax revenues stream in. Depending on how quickly the tax revenues are collected after bills are sent to property owners – ideally by the first week in December – the town may have to borrow money to pay the debts. It will owe $4.2 million to Merrimack County by Dec. 5 and $1.5 million to the school district by Dec. 10.

“This is a safety blanket, if you will, to make sure we have enough money there,” said Town Administrator David Jodoin, who explained the short-term loan would be paid off in a matter of months and would cost the town approximately $8,500, depending on interest rates and bank fees.

Hooksett property tax bills have taken longer than usual to be sent this year because the town recently completed its state-mandated property revaluation. It was the first revaluation conducted in Hooksett since 2003 and it reassessed homes, businesses and other properties at the fair market value as of April 1 – the beginning of the state’s tax year. The process took longer than originally anticipated and bills cannot be sent until the state formally sets the town’s new tax rate.

Jodoin told the Town Council that he expects the state to set the rate the soon. The time it will take to print the bills will run longer, though, he said, because of the Thanksgiving holiday. If this tentative schedule holds, home owners should receive their property tax bills by the first week of December.

Revaluations sent, tax bills to follow

Hooksett Editor — Wed, 22 Oct 2008 20:12:00 GMT

BY LAUREN SAUSSER

Hooksett homeowners received their revalued property quotes last week and have until Oct. 24 to appeal the new value to the town’s property assessor.

Before new cards were sent last week, about 40 residents turned out to a meeting hosted by the state Department of Revenue that briefly outlined the revaluation process that occurs in every New Hampshire town once every five years.

Hooksett resident Greg Weir was one of about 40 concerned local homeowners who attended the informational meeting. He, like many others, was concerned that that a potentially higher property value will increase the amount he owes in taxes.

“Are our taxes going to go up?” he asked. “Are they going to skyrocket? (The revaluation process) is based on a software program that has nothing to do with the stock market. It doesn’t have feelings. It doesn’t give a hoot.”

Hooksett is currently at the tail-end of the state-mandated five-year revaluation process of all property. The new revalutions statements declare the current fair market value of homes and businesses as of April 1, 2008 – the beginning of the state’s tax year.

David Hynes, a representative from the state Department of Revenue, was on hand to answer questions and briefly explain the process.

Hynes said revaluations are generally emotional because residents like Weir worry that a higher property value will equate to a higher tax bill. “Everyone wants a milliondollar house, but they only want to pay taxes on $10,000,” Hynes said. “That’s just not how it works.”

In fact, Hynes explained to several concerned residents, the dollar figure on the individual tax bills have less to do with the updated property values than it does with the town budget that was set last spring.

“Your taxes are relative to what you, as taxpayers, allowed (the town) to spend,” he said. A general rule of thumb that has historically applied to revaluations is one-third of property values increase, another third stay the same and the final third decrease.

Hooksett Town Councilor George Longfellow attended the Oct. 15 meeting and said everyone at that meeting is wondering which third their property will fall into.

“It’s money. You’re into people’s pockets and that gets emotional,” Longfellow said. “Everyone assumes just because their assessment goes up they will owe more taxes. But this money is already spent. It’s what they approved last spring.”

Tax bills are expected to be sent later next month.

Tax bills going out late

Hooksett Editor — Wed, 08 Oct 2008 20:13:00 GMT

BY JENN McDOWELL

Not only will Hooksett taxpayers be getting their tax bills in the mail a bit late, likely in November, according to Town Administrator David Jodoin, they’re also getting a notification prior to the tax rate setting of the new value of their homes and businesses.

The New Hampshire Department of Revenue requires towns to conduct a revaluation of all their commercial, industrial and residential property every five years, and this year, it’s Hooksett’s turn.

As the town’s assessing department wraps up its research and data collection, the setting of the tax rate will be a little later this year than usual, Jodoin said.

The final tax rate will likely not be set until late fall, Jodoin said.

The Town Council is hosting an informational meeting for Hooksett taxpayers on Wednesday, Oct. 15, in their chambers at the Town Hall at 6 p.m.

David Hynes of the DRA will give a presentation and facilitate discussion on the revaluation and how it affects individual property values and taxes.

Revaluations take place in all New Hampshire towns at least every five years. The goal of a revaluation is to assess values of property so that those values are as close to the market value of the property as possible – ideally at 100 percent. After all the information is collected, it is sent to the DRA, which calculates that percentage.

Currently, said contracted assessor Todd Haywood, the town’s property is being assessed and taxed at 78 percent.

While revaluations typically raise the value of a home (and therefore, the amount of taxes that have to be paid on it), they also increase the total value of all the property in town, which could result in less taxation per thousand of assessed value.

Haywood said he and the town’s assessment team have been assessing one-fifth of the town’s property each year since the last revaluation in 2003, measuring homes and businesses, analyzing sales and poring over town records to check for building permits for improvements.

“We want to verify that the physical data you have on file was correct,” Haywood said.

Any improvements made before April 1, 2008, will go on this year’s tax bill. Anything after that will be factored into the 2009 tax bills.

Currently, Haywood said, there are a little over 500 commercial/ industrial properties in Hooksett in addition to 5,500 residential properties. The town’s total value will be used in the setting of the tax rate, which is why the assessment needs to be completed first.

Businesses and homeowners will receive notices in the mail of what their new property assessment value is in the next couple of weeks, ideally before the Oct. 15 informational meeting, Haywood said.

When the DRA sets the tax rate, that 2008 rate will be used in conjunction with individual property taxes to calculate tax bills, which Jodoin said would likely be due around Christmas.

Default budget worries officials as prices increase

Hooksett Editor — Wed, 21 May 2008 18:10:00 GMT

BY JENN McDOWELL

Hooksett voters surprised town officials – and in some cases themselves – with how they decided to spend their money, leaving officials to wonder how to fill town gas tanks and cover other expenses.

About 12 percent of registered voters showed up at the Cawley Middle School on Tuesday, May 13, and rejected 508- 468 the town’s proposed 2008-09 $15.7 million operating budget, which had a 2 percent increase over what the town spent last year. The default budget will be $15.3 million.

The town also said no to a $1.5 million bond to fund the second phase of the town’s sewer plant expansion. While 504 voters cast ballots for the funding and 500 voted against it, it needed a three-fifths majority to pass.

Two Town Council members lost their seats to their challengers. “It was strange the way the vote came in, and we were amazed,” said Councilor-At- Large incumbent Stuart Werksman, who was defeated by Nancy VanScoy at the polls after a three-year term in the seat. Michael Pischetola will take over for Jason Hyde in the District 2 Council seat.

Werksman added fuel costs are going to pose major problems for the town’s budget. “It’s going to be a tough year, there’s no doubt about it,” he said.

The default budget would add about 25 cents per $1,000 of assessed value to the tax rate compared to the proposed budget’s 40 cents per $1,000, said Town Administrator David Jodoin.

Almost all the warrant articles passed, plus the default will add an estimated 61 cents per $1,000 of assessed value, about a $152 increase on the tax bill of a home assessed at $250,000.

If the proposed budget had passed along with the warrant articles that were voted in, the tax rate increase from last year would have increased by an estimated 76 cents per $1,000, which would result in an estimated $190 increase on the tax bill for the same home.

The Highway Department was approved to hire two new workers in 2008-09, after running for more than a decade with the same number of workers, according to highway manager Dale Hemeon.

The Fire Department got two more firefighters, bringing their staffing levels more in line with state standards. That passed by just three votes, 492-489. Voters also approved raises for non-unionized town employees, something Jodoin didn’t’ expect to pass during the tough economic times.

Voters did not add a part-time building and zoning inspector to the Town Hall, nor did they vote to spend money on updating the town’s Master Plan or vote to establish and deposit $33,000 into a road impact fee study.

A 13-vote margin separated the request to put $10,000 in to the parks and recreation capital reserve fund, which was voted down 481-494.

Jodoin said the voting results were a little surprising, but added the ballot was rather long and said the Town Council may consider ways to cut down on the amount of warrant articles on the ballot for future votes.

He said one of the biggest issues the vote raises is how the town will handle rising costs for necessisities such as fuel, salt and paving materials on a default budget. The town also has to make good on its contractual obligations and fund increased costs for areas of the budget out of the town’s control, including health insurance.

“We were kind of strapped as it is,” Jodoin said. “I think everyone’s going to have to be a lot more fuel conscious.”

The fuel funds in the default budget for 2008-09 break out to about $2.65 a gallon, Jodoin said, because they are based on costs from last year. The town is currently paying just over $3 per gallon for fuel. If prices makes it to $5 during the winter, as some experts have predicted, it’s going to put the town in a bind, Jodoin said.

The police, fire and highway departments use the most fuel. Officers are on patrol at all times and highway workers drive to work zones and use a lot of gas plowing over the winter. The large fire trucks are also gas guzzlers, Jodoin said.

And while Hemeon said he’s thrilled voters approved his new employees and two new trucks, he’s not so happy about the fuel line shortage he’s about to enter into.

Hemeon said his default budget fuel line breaks down to about $2.50 per gallon, and he recently found the department would have to dish out $3.49 per gallon for diesel fuel.

“I’ll be $135,000 in the hole if we use the same amount of fuel we did this year,” Hemeon said, of the 2008-09 budget year, and added he would likely forego on paving and other road projects this year to save money.

Even with the passage of a proposed budget, the Highway Department would have still run over its fuel budget, having come into budget talks under budget to begin with.

“Our job is to come in and say what we need. We try to be realistic,” Hemeon said.

After the salt shortage in many towns across the state this winter, the price of salt has climbed to about $43 per ton, a number that could climb to around $60 this year, Hemeon said.

“It’s going to be tough because we had a really tough winter,” Jodoin said, adding if there is any fund balance left at the end of this fiscal year, it could be devoted to stocking up on salt to avoid a buyer’s rush and potential price increase in the coming months.

Jodoin added that moving the town offices to their new location at the Village School will provide an opportunity to further refine and streamline the town’s practices.

If the situation gets bad enough, staffing changes would not be out of the picture as a last resort, Jodoin said, citing towns such as Allenstown and Concord, which had to cut hours and benefits for town employees to save money.

Historic Hooksett buildings can get aid

Hooksett Editor — Wed, 09 Jan 2008 22:16:00 GMT

BY JENN McDOWELL

So far, no one has officially applied for the Community Revitalization Tax Relief Incentive program, which grants tax relief to those who would revamp antiquated or debilitated buildings in the Village District, an area designated by Hooksett Town Council in November.

The program, outlined in state law, offers a tax incentive to those who would substantially restore a structure within the district for public benefit. The law’s purpose is to encourage the use of old and unused buildings in town and cities across the state.

A building restoration qualifies for the tax incentive if the improvements will benefit the town historically or economically. Along with the application, interested parties would also submit in writing a promise to maintain the building and its use.

One condition for applying is the improvements on the building account for 15 percent or $75,000, whichever is the lowest figure, of the building’s value at the time of application.

For five years after the restoration is complete, the owner would pay taxes only on what the value of the building was valued at prior to the improvements.

At the end of five years, the owner would have to pay taxes based on the updated assessed value of the building after restoration.

According to the law, the council can grant extensions beyond that five years in certain cases. Buildings that incorporate new housing units, particularly affordable housing, and those listed on the National Register of Historic Places would qualify for those extensions.

A public hearing to determine a building’s qualifications for the tax relief would occur no more than 60 days after the application was turned in. The Town Council would have to make a final decision on the building.

Kathie Northrup, head of the Hooksett Heritage Commission, pushed the council’s adoption of the state law through at a series of meetings in the past few months. Councilors adopted the law in October and then approved the district’s boundaries in November.

Northrup said the program is intended to promote economic development and historical preservation while at the same time managing sprawl, a central point in discussions around the community.

“I don’t think this tax incentive is going to induce someone to do it if they’re not already going to do it anyway,” said Northrup. “It’s just a little carrot to help them along.”

She added the district’s location, centered around the Village neighborhood and town offices, was selected for its large concentration of old buildings.

Hooksett is one of only four towns in the state to adopt the statute, the others being Manchester, Pittsfield and Berlin.

Northrup said she knows of about half a dozen other towns who are in the adoption process right now.

Copies of the application, map, and statute outlining the qualifying conditions can be picked up at the town administrator’s office.

A new deal on Cabela’s plan – Hooksett to vote on $16 million bond reduction, TIF district Oct. 23

Hooksett Editor — Wed, 26 Sep 2007 22:51:00 GMT

BY JENN McDOWELL

A completely restructured deal that will result in a Cabela’s sporting goods store and a hotel in Hooksett will also reduce an already approved bond authorization from $18 million to $2 million as well as create a new TIF, or tax increment financing, district in the town.

The new plan requires voter approval, a decision which Hooksett Town Council Chairman Paul Loiselle called “a no-brainer.”

If voters don’t pass this deal, the town and developer are back to square one, as no one – including taxpayers, town officials and the developer – wants to touch the original plan voters passed last year.

While several citizens raised concerns about the project itself, including tax impact, real estate values and possible effects on state aid at a special town meeting on Saturday, Sept. 22, others in Hooksett are glad to accept the new plan, which proposes a decrease in the town’s general obligation bonds for the project by $16 million.

At last year’s town election, Hooksett residents voted to approve a TIF district, a 300-acre parcel that the town would be obligated to for $18 million in bonds.

Earlier this month, the Town Council voted 8-1 to approve a reduction of the size of the TIF district to 100 acres and also to propose the new finance plan to voters which would reduce the town’s responsibility to $2 million in bonds.

The town’s general obligation bonds will be backed by a letter of credit from Miami & Pierce, the developer for the Wingate Hotel, also inside the TIF district.

Feldco, the developer operating on the project under the name New England Expedition-Hooksett LLC will obtain the other $16 million to fund the project up front through cash and private bonds.

Feldco produced Warrant Article 1 to seek voter approval for the TIF reduction and revised financial plan.

Saturday’s special town meeting was specifically held to introduce the warrant article outlining the new plan to voters and to get input on it.

Voting will take place Tuesday, Oct. 23, at Hooksett Cawley School. Polls will be open from 6 a.m. to 7 p.m.

If the new article passes, the council will seek recision of the previously approved TIF district finance article.

The new deal

Under the TIF district plans, New England Expedition would fund the development with future tax revenues they generate.

Any excess tax revenue would go directly into the town’s general budget.

Marc Hughes, the financial advisor from First Albany Capital, who is representing the town on the development, presented the 20-year projections for the new plan at a Town Council meeting earlier in September.

The town will refund the developer $1 million each year from their taxes to pay off the $16 million in private bonds.

In the first year, according to tax increment projections, the development will generate a total of about $1.15 million, leaving the town with the excess revenue to the tune of $150,000, which will go directly into the general fund.

Each year for the 20-year TIF period, according to the projections, that excess revenue for the town will increase, and will eventually far surpass the $2 million in bonds the town will put up.

TIF reduction

The Town Council approved the proposed TIF reduction from 300 acres to 100 acres, excluding the area west of I-93 from the district, a council decision Chairman Paul Loiselle voted against.

At the time, Loiselle said he was concerned that the excluded property would offer no incentives for future developers, and thus would not ultimately lead to increased property tax revenues for the town.

In the future, if a developer does build on the area outside the proposed TIF, those tax revenues will now go straight to the town as the property will no longer be included in the financing plan for the current TIF.

Council members also have said that the excluded area can be added back into the TIF in the future.

Public input

Many of those who spoke up at the meeting voiced concerns about the tax impact the developments will have on the town, particularly on the schools, in the future.

The Town Council, Beaudoin and Hughes addressed many of the residential concerns by reminding that the passage of Article 1 was only the first step in the process, and that the town was not being asked to vote on issuing the bonds.

“We’re not looking for a bond approval,” Beaudoin said.

Loiselle pointed out that the article would only approve the $16 million reduction in the town’s liability and allow the council to enter into negotiations with New England Expeditions.

Budget Committee Chairman Vincent Lembo expressed concern over the $2 million in bonds backed by Miami & Pierce.

“They could walk away, and we’re still going to take on a shortfall,” Lembo said.

Loiselle said that the town will not be on the hook if Miami &Pierce do not follow through on the bond because the letter of credit is backed by cash.

“There will be no revenue or dollars coming from taxpayers in any way, shape or form,” Loiselle said.

Impacts on schools, police and fire response, and population levels have not been conducted yet.

Joanne McHugh, chairman of the Hooksett School Board, addressed the council at the special meeting, pointing out that the state cut financial aid to Hooksett schools when the TIF for Exit 10 improvements began to get extra revenue.

“You should take into consideration that analysis needs to be done,” McHugh said.

Loiselle responded that the Exit 10 TIF generates $700,000 in excess tax revenue each year that goes directly into the general fund.

Lembo said the fire and police departments will need more equipment and staff once the development opens to the public.

He wondered whether the tax revenues generated by the development each year would be enough to balance potential negative impacts elsewhere in the town.

Hughes said those types of studies could not be produced until the town approves the new plan.

Lembo also questioned the council’s decision to waive $500,000 in traffic impact fees for Cabela’s, a tax break that put many Hooksett residents on edge.

Deborah Brewster of T.F. Moran, the engineering company in charge of the Hackett Hill road improvements that will go with the development, took the floor to explain the waiver.

The traffic impact fees were waived so the developer could spend a total $1.5 million on improving the area surrounding the intersection off of I-93.

The improvements, which amount to about $7 million, include adding a lane and toll both to the exit, a roundabout into the property, and a five-way traffic signal at the intersection.

According to Loiselle, the state Department of Transportation has already deemed the intersection dangerous, and that the proposed improvements would take it out of the “failed” category.

Bill Sirak of the Hooksett Economic Development Committee called the deal “a financial home run” by the town, adding that he believes the council has demonstrated the ability to work on the taxpayer’s terms.

“The Town Council has been especially concerned with the taxpayers. I have every confidence that you will take the appropriate steps to go forward,” Sirak said.

Only the first step

The most important thing that town members need to understand, said Scott Tranchemontagne of New England Expeditions LLC, is that the developmental process will being with the passage of this article.

“First and foremost, it’s critical for people to know they need to come out and vote,” he said.

No deals have been made with Feldco or Miami&Pierce yet, and will not be made unless the town votes to accept the new TIF and financial plan.

Tranchemontagne said he thinks the meeting went very well, and that voters asked great questions.

“People just want to understand what the vote is about,” he said. “It’s giving the town authorization to negotiate with the development team.”

He added that 62 percent of voters passed the first plan. The new plan makes the town responsible for only about 12 percent of what they agreed to before.

“If you supported this project two years ago, you would definitely support it now,” he said.
He added that there are many more steps on the road to development. “It’s a very specific and defined process that any
developer has to go through,” Tranchemontagne said.

Voters, he said, will have a say in every step of that process, and this is just their first opportunity to do so.

“The people of Hooksett are going to have many opportunities to weigh in on this project beyond Oct. 23.”

State involvement

The state is not contributing any funding to the project. The developer is undertaking the costs of the road improvements by the intersection off of I-93.

Mike Vlacich, director of the state’s Division of Economic Development, attended the meeting to show support for the project, he said. He took notes on the proceedings.

Vlacich said the state wants to ensure the project is a successful undertaking for the town and the developer, adding that he sees the deal as “a win-win for all parties.”

State Rep. David Hess of Hooksett has been following the project closely, attending Town Council meetings and offering input in the discussions about road improvements, sewage restructuring and tax impact.

Hess did not agree at all with the first deal, but said that the new proposal is “incredibly superior” to the old one, which he said would not have produced tax revenue for the town until around the 13th year of the 20-year agreement.

Tax break – Hooksett reduces impact fees for Cabela’s

Hooksett Editor — Wed, 29 Aug 2007 21:11:00 GMT

BY JENNIFER MCDOWELL

The Hooksett Town Council voted 7-2 on Wednesday, Aug. 22, to skim a half million dollars off of the traffic impact fees Cabela’s would have to pay once the sports retailer’s development begins bringing in tax revenue.

The decision came after the Planning Board already voted to approve what dissenting Councilor Jason Hyde called “a tax break” for Cabela’s.

Deborah Brewster of TF Moran, said Feldco Development Corp. will make a total of $7.2 million in traffic improvements to the Hackett Hill Road area.

The modifications on the table include a five-way traffic signal, an additional lane coming off I-93, another toll station, and a roundabout in front of Cabela’s.

According to Brewster, the changes, amounting to $2.4 million more than what is required for the development, will make things easier if and when future developers come into the area.

Town Council Chairman Paul Loiselle said the state has agreed to fund a portion of those highway improvements, but pointed out that there are no guarantees with the state.

“It’s not cast in stone because the state has a number of issues with funding roadways,” he said.

Even with the state funding, Loiselle said, there would still be a shortage of about $1 million for the traffic improvements.

That’s where the $500,000 traffic impact fees break would help out.

Council members Jason Hyde and Patricia Rueppel were the only dissenters to the motion.

Hyde explained that while the additional improvements put more responsibility on the developer, the town cannot be expected to foot the bill for changes that are not necessary at this juncture.

Cabela’s, he said, promised to cover the traffic modifications and should own up to that promise. By giving them this tax break, he said, “we’re letting Cabela’s off the hook.”

“They’re a billion-dollar company,” Hyde said. “They don’t need half a million from us.”

In addition to the decision to waive $500,000 in traffic impact fees, the council also voted to accept a new TIF financing plan for the development.

Under the new plan, the town would only be responsible for a $2 million in general obligation bonds as opposed to $16 million, as was initially proposed.

Hooksett residents will be able to vote on the new plan at a special town meeting, time and date to be announced. Prior to that meeting, the council will hold several public information sessions on the issue.

Loiselle said he believes voters in Hooksett will readily accept the new plan, once they get the opportunity to discuss the issue and ask questions.

“I think the public, once they realize how much safer and better this is,” will be in favor of the plan, he said.

Also at the meeting, the council voted to reduce the dimensions of the TIF scheme.

The council voted to exclude the area west of I-93 from the TIF. In doing this, the town would reap more tax revenue generated by future developments in that area.

Within the next month, Loiselle said, public sessions will be held to discuss the issues with voters.

Off the hook – New Cabela’s financing lessens taxpayer risk

Hooksett Editor — Wed, 18 Jul 2007 20:50:00 GMT

BY SUSAN WARE

If a new plan for the Palazzi property goes as expected, a special town meeting may be called in September to ask voters to approve a new finance structure that would lessen taxpayer liability by $16 million.

On Wednesday, July 11, Feldco Development Corp., a Connecticut-based real estate developer, presented the Hooksett Town Council with a new tax increment finance, or TIF, plan for the Palazzi site, located on Hackett Hill Road where a sprawling retail development is proposed.

If approved at a special town meeting, the new plan would release taxpayers from an $18 million bond that Town Meeting approved in May 2006. Instead, taxpayers would be liable for only $2 million, with the developers borrowing the other $16 million privately.

Under the proposed plan, Feldco would develop the site following a plan they used successfully in Scarborough, Maine. The Cabela’s development project there broke ground on July 17, 2006.

The Palazzi property, where Cabela’s wants to build, is in a tax increment financing district, or TIF district. This enables the town to kick back property taxes to companies and developers, making the location desirable. Under the proposed plan, only 60 acres would be included in this TIF deal. Property taxes on the balance, between 80 and 100 acres, would go into Hooksett coffers.

Initially taxpayers agreed to foot the bill for $18 million worth of infrastructure, sewer and roads. The new plan calls for Feldco to get $16 million in private financing over 20 years, which they say they will pay back using returned property taxes and rents from the properties they developed on the Hackett Hill site.

According to Feldco business partners Barry Feldman and Gene Beaudoin, Cabela’s approached them several months ago to look at the Hooksett site.

“Cabela’s initially approached us about developing the surrounding properties because they felt that this project was stalling,” said Beaudoin. “We told them that it wouldn’t work to develop the surrounding property because we wouldn’t know who the tenants will be, and Eastern retailers may hesitate because they are unfamiliar with Cabela’s.”

Under the new Feldco plan, the developer would buy the Palazzi property and build a 150,000-square-foot Cabela’s retail sporting goods store. Feldco would remain the landlord, holding a long-term lease with the giant sporting goods retailer as the anchor tenant.

David Barnes, an attorney with Divine, Millimet & Branch, who is advising the town on the financing structure for this project, likes the proposed plan.

“Bond attorneys, by nature, are very conservative. This plan looks good,” said Barnes.

Barnes said that since he couldn’t find another example of this type of development in New Hampshire, he ran the plan by state-level officials to see if it could work with the state’s parameters. So far, he has gotten a positive response from everyone.

“I have learned that this is the way these large developments happen in other parts of the country, but we are not Maine, so I had to ask if this was something that we could do here,” said Barnes.

Barnes recommended that if Town Council decides to take the proposed plan to voters, they hold a public hearing prior to a special town meeting so questions can be answered.

Town Councilor David Ross said this plan looks like a great opportunity for the town.

“This is truly the last goldmine on Route 93. It is about time someone recognized that,” said Ross.

For Town Councilor Jason Hyde, the project speaks to his passion for socialism.

“You all complain about my talking about socialism, but with this project is the most socialistic I’ve seen. All roads on this lead to socialism,” he said.

Chairman Paul Loiselle asked Feldco to return with a proposal that spells out all of the details in the simplest possible terms, along with the developer’s financial records.

Beaudoin agreed and said if all goes well, they would like to get special town meeting approval in September, go to the Planning Board in the fall, start site work in the spring and have Cabela’s open its doors in fall 2008.

“This proposal is very interesting. We would like to hear more about it,” said Loiselle.

Hooksett readies for Town Meeting - Sewer work, police contract, new park to be discussed April 7

Hooksett Editor — Thu, 05 Apr 2007 13:37:00 GMT

BY NICHOLAS BROWN

Following a year in which an $18 million bond proposal drew hordes of people to the polls, Hooksett’s 2007 town warrant – up for discussion at the Saturday, April 7, deliberative session of Town Meeting – is remarkably tame.

The town council agreed to shoot for a “zero increase” town budget this year, and stripped several town department requests from the ballot over the last few months.

Residents will have the chance to weigh in on requests including $1.5 million to finish the upgrade of the wastewater treatment facility, a new contract for unionized police officers and a $50,000 request that could bring the first town park to the town’s west side.

Also proposed is a $15,010,889 municipal operating budget, which marks about a 2.7 percent increase over the current default budget, said Town Administrator David Jodoin.

The proposal is about $190,000 above the default budget, and Jodoin said the gap largely comes from increased costs for things like fuel and health insurance.

“There are some obligations that we had little or no control over,” said Jodoin.

The budget committee unanimously supported the budget proposal.

Article 3 asks for $1.5 million to complete the renovations and capacity upgrades to Hooksett’s sewer plant. The work was sparked several years ago by a multimillion bond. If voters approve the request, and the $18 million bond approved by voters last year is sold, voters would have the chance to rescind this year’s vote at a future Town Meeting, Jodoin said.

Article 11 asks voters for about $166,000 over the next three years for a new contract for Hooksett’s unionized police officers, who’ve been without a new contract for the last year.

Voters will also see a request to put $50,000 into the parks and recreation facilities fund.

Parks officials have said the money would go to build a park on 6.3 acres of Hackett Hill Road and Corriveau Drive that could include tennis courts, playground equipment, offstreet parking and possibly a basketball hoop.

Parks officials have said the new recreation facilities will help reduce the town’s deficit in recreational facilities, a deficit that’s preventing the department from accessing impact fees, collected when developers pull new building permits.

The fees must be used by the department within six years or they’re returned to the developers.

The deliberative session of Town Meeting is at Cawley Middle School, at 1 p.m. on Saturday, April 7. Voting day is Tuesday, May 8.

Cabela’s sends Hooksett $50,000 for legal fees

Hooksett Editor — Thu, 22 Feb 2007 19:42:00 GMT

BY NICHOLAS BROWN

HOOKSETT – Retail giant Cabela’s is wiring $50,000 for legal fees into the Hooksett town coffers, though some town councilors said they’re uneasy spending the cash without promises from the corporation that Hooksett taxpayers won’t be stuck repaying an $18 million loan.

Councilors had different opinions about an October discussion in which Town Councilor Jason Hyde said he wanted a letter from Cabela’s corporate officials detailing its proposed plan to collateralize an $18 million bond Hooksett voters approved last May.

On Wednesday, Feb. 14, Hyde reiterated that he doesn’t want to move forward with negotiations without promises from the sporting goods outfitter that it would collateralize the bond through treasury notes or a letter of credit. Hyde said he also wants to reach a deal with the company whereby it’s responsible for any fees, like legal fees, associated with the bond negotiations, even if the Cabela’s project doesn’t move forward.

Councilors agreed they didn’t want to be liable for such legal fees, but some said a letter from Cabela’s detailing its proposed guarantee is premature since town lawyers haven’t yet begun negotiations with the company.

“We can’t ask them for something unless we know what we want,” said Councilor Mike Jolin.

He said without some professional analysis of a potential bond deal, he’s not ready to sign off on any deal specifying what type of collateral the company may offer.

“I’m not going to make that decision,” Jolin said. “I’m not going to lay my name on that for $18 million.”

Voters allowed the council to enter into negotiations for the $18 million bond, with a promise written on the ballot that the bond won’t require new taxation. Of the total, $13.5 million has been earmarked for infrastructure in and around a site near Interstate 93’s Exit 11, where Cabela’s plans to build a 100,000- plus-square-foot retail store. The money is tentatively slated for roadway improvements, sewer and water line extensions, access to the Cabela’s site through state-owned land and Cabela’s “museum elements.”

The remaining $4.5 million is earmarked for town infrastructure improvements like the final phase of upgrading the wastewater treatment plant, Lilac Bridge reparations for a sewer line and a possible fire station on the west side of the Merrimack River.

The Cabela’s store would anchor a 150-acre tax increment financing, or TIF, zone. Tax revenue generated from the new developments within the TIF zone would go to pay off the $18 million bond, and revenue exceeding the annual bond payments would go to the town’s general fund.

Early drawings of the TIF zone show it loaded with potential commercial developments including hotels, distribution centers, retail stores and restaurants. Cabela’s representatives have estimated that the zone wouldn’t yield enough revenue early in the life of the 20-year bond to make annual bond payments, but company spokesmen have also said Cabela’s would buy the bond, and cover such shortcomings.

Cabela’s representative Ed Eckman told voters last year that the company would look to recoup such expenses in later years, when more revenue would likely be streaming in. Representatives from Cabela’s, a Nebraska-based, publicly traded corporation, planned to meet with the council at a special meeting on Wednesday, Feb. 21, at the Hooksett Public Library.