Dillon rejects town’s offer; proposal would have conserved 385 acres

COURTESY
GRANTHAM — The Town of Grantham has cancelled its Oct. 23 special town meeting to consider a $300,000 appropriation toward acquiring a 385 acre parcel of land on Upper Dunbar Hill Road.

The owner of the parcel, Dillon Investments, LLC has rejected the town’s offer of $415,000, which is the independently-appraised fair market value of the property. 

Dillon acquired the property for $385,000 in April 2018 and announced plans to complete a significant timber harvest on the parcel. A number of residents opposed the proposal at a May 23 meeting of the board of selectmen.

The harvest was put on hold over the summer, which the town suspects was due to the uncertainty in New Hampshire’s biomass energy industry after Gov. Sununu’s veto of biomass legislation. The legislature’s recent vote to overturn the governor’s veto may have restored the market for low-grade timber, which is much of what remains on the parcel after 2013 and 2014 timber harvests by the prior owner.

Under a proposed project with The Conservation Fund (“TCF”) and Ausbon Sargent Land Preservation Trust (“ASLPT”), the town would have acquired and permanently protected the property using a combination of town, Land and Community Heritage Investment Program (LCHIP), and private funding. The town’s share might have ultimately been reduced to $250,000 or less using this collaborative approach.

Despite extraordinary efforts that included petitioning the Sullivan Superior Court and receiving its permission to hold a special town meeting, the town was unsuccessful in reaching agreement with Dillon, who sought $475,000 for the property.

Whereas accredited land trusts are bound by rules that prevent them from paying more than fair market value, any deal at a price over $415,000 was impossible via a collaborative approach that would allow for the quick closing sought by Dillon and reduce the financial burden on Town taxpayers.

said:

“Although this project did not end in a deal, the town gained much,” said Warren Kimball, chair of the Grantham Board of Selectmen. “The town put together a proposal that was reasonable, provided maximum value to taxpayers, and strengthened relationships with partners that will benefit future conservation efforts in Grantham. We are grateful to The Conservation Fund and Ausbon Sargent Land Trust for being eager and capable partners who invested a lot of time and effort in trying to get a deal done.”

Sheridan Brown, a Grantham attorney and former selectman, coordinated the town’s negotiations with partners and handled its Superior Court petition pro bono.

“It is disappointing that we couldn’t reach a deal,” Brown said, “but the public policy reason for not paying above fair market value is very sound. Paying a higher price drives the cost of conservation up for everyone unreasonably. The town should be commended for its thoughtful and collaborative approach to conservation and its tremendous effort to protect the natural and recreational resources of the town.”