City Hall: Search on for funds for MST's building program

Mar. 25—CITY ALDERMEN HAVE put on hold a request from Timothy Otis, principal at Manchester School of Technology, to sell a minimum of two of eight buildable lots donated to the city in 1992 in an effort to raise money to sustain the school's building program.

Aldermen want to give city and school officials time to find an alternative source of funds that doesn't involve selling the lots.

The lots were donated to the city in 1992 by the Vocational Partnership of Region 15 (VOPAR).

VOPAR is the nonprofit board that oversees the construction of houses by students at MST.

The land is located at the south end of Stanton Street. Every home on that street was built by MST students, according to Otis. The school also is asking to have the ability to sell up to two additional lots, if necessary, to sustain the school's building program.

"We are presently developing the previously undeveloped land at the south end of Stanton St. to be able to resume home construction in the fall of 2023," Otis wrote in a memo to aldermen. "This includes extending the road and town water/sewer to provide access to 8 new lots, as approved by the city of Manchester in 2019."

Following a COVID-related delay, the cost for this infrastructure development has risen significantly, from $480,000 to $640,000. The development was approved by the planning board, and the $640,000 has been placed in escrow for release as the work is approved by the Department of Public Works.

"The issue that we are facing is that with $640,000 tied up in an escrow account, we do not have additional funds to cover other expenses including the startup costs of home as the Trades Education Program as MST returns to on-site learning this fall," Otis wrote.

According to Otis, the land was conveyed by the city to VOPAR in 1992 for the purpose of providing MST students with home building opportunities. The deed restriction was added to prevent the land from being sold for other reasons. The land is owned by the nonprofit, not the Manchester school district.

VOPAR has developed the land for 26 homes so far, he said. The latest subdivision of eight lots uses the last of the available land.

VOPAR is at a standstill with funding for this last subdivision of land, Otis said. The funds are tied up in an escrow "bond" account to pay for the project.

"There is a delay between contractor's invoices and work completion that the city inspects and authorizes release of the funds from escrow to pay the invoices," Otis wrote. "VOPAR does not have liquid funds to pay for gaps or delays between work completed and invoiced and what percentage the city believes the project is completed. This has created hardship and construction is at a standstill."

The original construction cost estimate increased from when the subdivision was approved in 2019 to when construction actually started in 2022 because of a pause in the building program for the pandemic and subsequent inflation.

"What we would have had for liquid funds evaporated with the inflation increase," Otis wrote.

MST also needs to raise funds for building materials for its next house, set to begin construction this fall.

Otis said three interested builders were identified, each with an offer for two lots.

"We took the highest bidder and we will not be required to pay a real estate commission," Otis said. "Local real estate vacant lot comps agree that we are getting a fair price.

"Our students in the building trades programs at MST are really looking forward to resuming the construction of houses. This is a great opportunity for the school to train future workforce members and to bring additional housing to Manchester."

Aldermen Tony Sapienza said board members want to help MST secure the funds needed to keep the program operating without losing the lots.

"There's a lot of support on this committee and in this city to help you guys get your project of the ground," Sapienza said. "We're gonna try to find you some money so you can keep those two lots."

Mayor Joyce Craig agreed with Sapienza, saying the school district and the city want to "maximize educational opportunities" for students.

"Asking for two to four lots to be sold, that would leave only four lots to be built," Craig said. "That is significantly decreasing educational opportunities. We don't want to do that to students."

"We do admire you bringing a solution here and you're using your own assets, but we want to help you save those two assets," Sapienza said.

The request was tabled for additional discussion on funding sources.

Airport grants OK'd

The Manchester Development Corporation Board of Directors voted unanimously to commit $100,000 in grants to Manchester Boston Regional Airport.

In 2021, the NH Commerce Corridor , a coalition of seven Chambers of Commerce from across the southern and capital regions of the Granite State, began to discuss the idea of forming a nonprofit entity to bolster air service development efforts at Manchester Boston Regional Airport.

Air Service Support & Enhancement Team , which was formally organized in 2022, is led by Heather McGrail, president and CEO of the Greater Manchester Chamber.

The Manchester Development Corporation committed the funding with the goal of increasing passengers and enticing more airlines to offer service in Manchester.

MDC is a 501©(4) non-profit development corporation that supports the economic development initiatives of the city under the direction of the Board of Mayor and Aldermen. Since 1999, MDC has provided more than $2 million to develop projects in Manchester as well as provide gap financing to business owners and developers to assist in economic development opportunities intended to lead to job retention and creation.

The funding support was approved under the leadership of previous MDC Board chair Suzanne Brunelle and Manchester Economic Development Director Jodie Nazaka.

"The Manchester-Boston Regional Airport continues to grow by providing excellent service and a growing list of destinations for passengers around New England," Amy Chhom, MDC's current Board chair, said in a statement.

"The addition of Avelo Airlines service to Raleigh-Durham airport is just another example of the city's expanding economic reach. The Manchester Development Corporation is proud to contribute these funds and we are all excited to see what exciting new projects will come next."

Paul Feely is the City Hall reporter for the New Hampshire Union Leader and Sunday News. Reach him at pfeely@unionleader.com.