Claremont plans to buy vacant state office building

By PATRICK O’GRADY

Valley News Correspondent

Published: 11-14-2024 5:26 PM

CLAREMONT — The City Council voted this week to move forward with the possible purchase of a vacant state office building at 17 Water St., which the city plans to resell for redevelopment.

Ownership of the building will give the city control over its future, whether it becomes an office space, housing or a hotel, City Manager Yoshi Manale told the council.

The building, which is next to The Common Inn, is in a “prominent” location in the mill district, Manale said on Thursday, adding that it is in the city’s best interests to see it redeveloped in a way that is consistent with the vision for that area.

“It is about controlling our own destiny,” Manale said. “From the city’s perspective, we want to be sure we put the right person in there to develop the property to enhance the area and not let it sit vacant. I think our preference would be market rate housing or a hotel.”

In a 7-2 vote on Wednesday, the council approved a resolution for a loan agreement for $700,000, with an interest-only payment of $33,000 due after one-year.

Most councilors supported Manale’s plan for the reasons he outlined.

But Councilor Nick Koloski voted against the resolution along with Councilor Andrew O’Hearne.

Koloski’s primary concern was the possible cost to heat the building, ensure the sprinkler system works, and additional insurance premiums.

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Manale said Thursday the fire chief and water department told him the water has been drained from the building and the heat shut off – a common step for vacant, city-owned properties.

“Added insurance is minimal, so carrying costs are not significant,” Manale said.

At the council meeting, Manale said any costs beyond the purchase price that the city spends would be folded into the sale price.

Koloski also asked about placing deed restrictions on any sale so if the initial buyer decides to resell, the next owner would have to abide by those restrictions. He worried that subsequent sales could result in the property being used for something the city does not want. Manale told the council he did not believe the city could impose deed restrictions, but corrected himself Thursday.

“I was mistaken. As the seller we can impose deed restrictions,” Manale said.

The four-story brick building on the Sugar River is 32,750 square feet and was constructed in 1900 as part of the Monadnock Mills Complex, which closed down in the 1930s, according to the city’s assessing records. It is assessed at $1.4 million.

The city gave the building, which was vacant, to the state in 1980. The building was then renovated at a cost of about $1.6 million and offices of the Department of Motor Vehicles and Health and Human Services were located there beginning in 1983.

The DMV left several years ago and HHS closed its offices earlier this year after water pipes broke and caused flooding in February 2023.

The building now needs repairs, including possible lead paint remediation, structural concerns, asbestos testing, water damage and possibly mold remediation, which Manale does not expect the city to make.

“In reality, we are selling it as is,” Manale said. “We are selling it for economic development purposes.”

State law requires that the city be given the right of first refusal to purchase the building.

If the state retains ownership, it would likely sell it to the highest bidder with no concern about whether it is developed, how it is developed or if it sits vacant, Manale said.

Potential buyers would be vetted by the city to be sure they have the experience and financial resources to complete a proposed project, Manale told the council.

“We will hold them accountable to be sure the project they are going to do comes to fruition,” Manale said.

On Thursday, he added another protection for the city.

“We are planning to have a ‘reverter clause’ so if the purchaser doesn’t do the work they said they would do or doesn’t put in the investment they said they would make, the city can take the building back,” Manale said.

Following the council’s approval on Wednesday, the city has 45 days to conduct an environmental assessment and review the title.

Final sale will need approval from the governor and Executive Council, which could happen early next year, Manale said. After the Executive Council approves the sale, the city would have 10 days to back out.

Patrick O’Grady can be reached at pogclmt@gmail.com.