Les Otten's Balsams Boondoggle Still Can't Find Enough Financing to Proceed - Granite Grok

Les Otten’s Balsams Boondoggle Still Can’t Find Enough Financing to Proceed

Les Otten Balsams

It’s a sad tale of a boondoggling boondoggler (Les Otten) who sold the state on a plan. Jobs for the North Country he said. As far as the eye can see. Just approve this “loan guarantee” and the private money will fall from the sky. We’ll be paying you back in wheelbarrows full of business taxes before you can say Les Otten.

Then Governor (now US Senator) Maggie Hassan signed SB30 back in May of 2015. The Bill allowed unincorporated areas of the state to become a “tax district” so they could get bonds for redevelopment. The promise of the Balsams reboot drove the legislation forward. “A bold vision for the revitalization of this historic resort with great potential to create jobs, boost the North Country’s economy, and have a ripple effect for businesses across the state.” According to then Governor Hassan.

So, bold that Otten can’t find enough private money to get the project going almost four years later.

No Public Money Either?

Within a year Otten had expanded his vision from 28 million in loan guarantees to 40 million. That didn’t include money taxpayers were providing for fixing roads and other features around the site so tourists could get to the shiny newly renovated facility when it was complete.

More like if than when.

In May of 2017, Otten and the New Hampshire Business Finance Authority (BFA) were dickering over the details the original 28-million-dollar taxpayer-backed windfall. But that fell apart in August of 2018. The BFA and Otten couldn’t get the deal done.

In a statement, BFA chairman Dick Anagnost said that after reviewing Otten’s business plan the agency grew concerned it might be putting public money at risk.

Otten “wasn’t willing to meet the normal and customary conditions that are required as part of the regular application process,” he said. “We could not in good conscience risk taxpayer funds for a private venture with no assurance of repayment in the event the project was not successful.”

Otten’s financial backing must be sketchy, unstable, or non-existent for the BFA to back off on handing him a check. Kudos to them for taking taxpayers off that hook. But Otten is back with another one.

Please Sir, may I have another?

Like the kid in OneCrazyy Summer who wants his two-dollars, Otten’s looking for another path to the 28 million.

The Caledonian Record reports Les Otten asked lawmakers to support a Tax Increment Financing district for Dixville and allow the county to issue a $28 million bond from a private lender, a critical financing piece in the total $175 million redevelopment package.

Otten said Monday the county wouldn’t own the bond and its involvement wouldn’t leave it or its taxpayers on the financial hook. Legislators would need to pass it.

I’m not a banker, and I don’t play one on the internet, but I’d be interested to know how that works. I’d also like to understand how the county or the state isn’t on the hook for 28 million. If there’s that much interest in the project where’s the private millions?

If it’s waiting on public money that means the public gets screwed when the thing falls apart. A situation we can’t claim for the Balsams yet because we’re still at the stage where it hasn’t gotten started. And as we roll into 2019 it doesn’t look like it ever will.

Image Credit: Bangor Daily News

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