NH Should Pay Attention to What Happened in Vermont - Granite Grok

NH Should Pay Attention to What Happened in Vermont

Image: KEITH BEDFORD/GLOBE STAFF
Image: KEITH BEDFORD/GLOBE STAFF

As we entertain ourselves with Les Otten (pictured above) and his ‘North Country’ revitalization promises–and the political hoops bureaucrats and legislators in New Hampshire are jumping through to please him, we get this in-depth investigative reporting on VT Democrats. How they ignored financial risk and promoted fraud (and a Ponzi scheme) in exchange for promises of economic development and yes, generous campaign contributions.

I scratched the surface here back in April, but VT Digger has gone all in to explain and expose the events and the players. Big promises for North Country (Vermont) job creation. Federal programs tweaked. Taxpayer money funneled for infrastructure. Local politicians lined up. Investors corraled and most-likely bilked. Taxpayers put on the hook for fraud investigations and investor refunds.

The article, in two parts, is long but detailed. This is not an ideological witch-hunt but a measured explanation of the events and how developers who played to politicians (with emotions, promises, and campaign money) worked the system to keep themselves from financial ruin at the expense of others. Something we (and by we I mean primarily Kimberly Morin) have been warning New Hampshire to be on the lookout for with Otten, Dixville Capital, LLC, and the growing tendrils emanating from the Balsams Boondoggle.

Otten needed taxpayers to backstop private investors. Legislators and Gov. Hassan went all-in. But as the sum of our investment grows, and pressure is applied locally to create the appearance of progress, the Newport Vermont scheme offers us a roadmap and some guidance.

We cannot rely on politicians to look critically at anything that promises to ‘create jobs’ or bring commerce to New Hampshire’s North Country. They won’t do it. They will pour our tax dollar’s down a hole if they think it will make the locals turn out to support them.

I’d also be very leery of the opportunity offered by ‘The Balsams Resort” to reserve condo space for $1,200.00.

While The Balsams will be a priceless experience of a lifetime, you can reserve your place with a non-binding, fully refundable deposit of $1,200. Your Century Club reservation entitles you to:

  • Priority position for ownership and room selection in the Hampshire House Condominium
  • An exclusive invitation to a first-look weekend at The Balsams
  • Insider view to see how our plans are progressing

I wouldn’t bet a nickel on any of these fools getting their money back. I doubt we will see a dime of the tax dollars returned, as anything other than another lesson in legislative largess gone wrong at taxpayer expense.

I’d love to be wrong; I just don’t trust these deals. Private money knows how to find failure, but it also knows where to find success. When it fails, the investors learn a lesson. When it succeeds, they are rewarded for their risk.

Public money papers over failures that continue indefinitely at an increasing cost with little hope that anyone will be held to account for the loss and no hope that taxpayers will every see any real benefit. Backstopping private development is corporate welfare to people with lawyers and connections and escape plans.

Keep your eyes open and read that story from Vermont. And try not to act surprised when this all “unexpectedly” falls apart in New Hampshire and, just like in Vermont, the politicians pretend that there was no way they could have seen it coming.

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