Dakota Partners, a Massachusetts-based developer, has withdrawn from a proposed housing project on Old Loudon Road in East Concord, New Hampshire. The project, initially planned to include 98 housing units across three buildings on a 13-acre site, received conditional approval from the Concord Planning Board in August 2023. However, escalating construction costs and a lack of funding ultimately led to the decision to abandon the plans.
Jeremy Vieira, Development Director for Dakota Partners, cited financial challenges as the primary reason for the withdrawal. “We were getting figures back that made the project difficult from a financial perspective,” he explained. Rising construction costs made securing necessary financing unfeasible.
The property owner, Mark Bogacz, expressed understanding for the decision, acknowledging the impact of rising construction costs on project viability. While disappointed, he remains optimistic about the future of the property, describing it as a “beautiful piece of property.” The site, historically known as Leavitt Farm, is listed on the National Register of Historic Places and retains much of its original character.
The project, initially named Leavitt Farm Apartments, encountered several challenges beyond financing. The project summary submitted to the Planning Board highlighted the need for separate water and sewer services, requiring a financial guarantee from the developer. Sewer capacity limitations in East Concord posed a significant hurdle, exacerbated by ongoing developments at Steeplegate Mall and the potential construction of a Costco. Richard Woodfin, Planning Board Chair, confirmed these concerns, noting the strain on existing infrastructure.
Despite efforts from the city to assist Dakota Partners in securing funding, including exploring options like Community Development Block Grants, the project failed to qualify. Vieira confirmed that other financing assistance applications were also denied. “We didn’t see a clear path to getting it funding in a way that we liked going forward that we thought would allow us to do a successful project there,” Vieira stated. “So we decided to move on.”
The withdrawal highlights the ongoing challenges of developing affordable housing in New Hampshire. Vieira emphasized the impact of pandemic-era funding, such as the American Rescue Plan Act and New Hampshire’s InvestNH program, in supporting past projects. He expressed hope for continued state and federal subsidies to incentivize future affordable housing development beyond existing tax credit programs.
Dakota Partners, experienced in utilizing tools like the Low Income Housing Tax Credit, has successfully completed other affordable housing projects in New Hampshire, including the nearing-completion Railyards project in Concord’s South End.
Vieira acknowledged the widespread awareness of the state’s housing crisis, with an estimated need for 60,000 units by 2030. He emphasized the commitment of communities throughout New Hampshire to address this issue.
While the Leavitt Farm Apartments project is no longer viable for Dakota Partners, Vieira expressed optimism that another developer may eventually pursue the site. “It would have been a great project,” he commented. “It very well might be that somebody in a few years steps back in to take it.”
