They built the stadium and the money was supposed to come. Housing and commercial development around Manchester's MerchantsAuto.com stadium was going to help pay for the field.
But that was before the housing market tanked. Now the taxpayers of Manchester may have to make up for a shortfall in anticipated revenues.
NHPR correspondent Ellen Grimm reports.
To get to Riverwalk Place, you have to drive behind Merchantsauto.com stadium.
On your left, about a stone's throw away, is a railroad track.
About the time you get to the looming scoreboard, small roadside signs appear, reading: balconies with water views, central air conditioning, hardwood flooring.
AMBIANCE: Sound of crows, river, route 293 in the distance, realtors talking to buyers.
EG: Maura McLaughlin is a realtor with the Gove Group.
Her job selling Riverwalk Place luxury townhouses these days has gotten harder.
MAURA: You have a nice view of the river, the river walk, and the hands-across the Merrimack Bridge, which is going to be really pretty when that's lit.
But the townhouses haven't been selling as hoped.
And the flagging housing market has caused developer Eric Chinburg to scale back building activities.
He's also drastically reduced the prices of the luxury townhouses for the remaining units, some by as much as $100,000. Since then, one townhouse has sold and there's been increased interest from buyers, according to McLaughlin.
Developer Eric Chinburg.
CHINBURG: They were 350 and I said you know what I want to -- you know how furniture people says we're doing an inventory blowout -- I just want to move these homes. It'll be great buys for ten lucky buyers and then when the market starts to swing around, I've got 21 more to build there in the first phase and 144 to build in the next phase. I fully intend to do those, but I'll have to wait until we can demand a price that's profitable.
Meanwhile, he’s completed only 24 units, and nine are still on the market.
That’s a far cry from the full-fledged development city officials and planners had in mind when they cinched the stadium deal.
That deal was set up so that the tax revenue from the housing development would help the city pay for the ball- field where the New Hampshire Fisher Cats play.
Nowadays, though, it's looking as though taxpayers may have to pick up the stadium’s tab.
In fact, they have already paid about $1.3 million since 2005, according to the city's finance office.
Alderman Mike Lopez says the plan was a good one.
LOPEZ: All the pluses were on the table and unfortunately the economy went south and we did the best deal we possibly can. We had three years of letters of credit -- unfortunately, they're running out.
Those letters of credit -- including one from developer Eric Chinburg -- helped pay the initial stadium debt.
But come December 2008, that money will be gone.
And $630,000 may have to be shouldered by city taxpayers,
According to the city’s finance office, that works out to be about $18 on the average tax bill.
Mayor Frank Guinta was an alderman at the time of the stadium deal and voted in favor of the deal. He said the city is working with Chinburg to help make sure the development plans come to fruition.
GUINTA: If it doesn't, then the city is going to have to look at other development opportunities in that area.
As for taxes.
GUINTA: The intention of the deal that was put forth by my predecessor was that taxpayers will not have to foot the bill, so I'm going to do everything I can to honor his promisse to the taxpayers.
Alderman Ted Gatsas had opposed Manchester's stadium deal.
GATSAS: The cost of the bonding was going to be $2 million, the baseball team was going to pay $900,000 towards it, the other entities were going to pay the balance of the million, and it was never going to cost the taxpayers of the city of Manchester any money.
But Eric Chinburg is taking the long view.
CHINBURG: If there's a short period of time where the city has to make up a difference, that's unfortunate, but remember these bonds are paid off in 25 years and the tax revenue lasts forever on this site. And when this site is fully developed, which hopefully can happen in the next three or four years, there will be an excess amount of tax revenue, more than what the bond cost.
Jay Minkarah, the city's economic devlopment directcor, says a nearby medical development will bring about 1,000 new jobs to the area.
And a four-acre riverfront park will also enhance the condominium property.
All that could be in place in about three years making the RiverWalk development more attractive when the housing market settles down.
For NHPR, I'm Ellen Grimm in Manchester
