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Bedford council approves five-year payment-in-lieu agreement with Dartmouth Hitchcock Clinic
Summary
The Town Council voted July 16 to approve a PILOT (payment in lieu of taxes) agreement with Dartmouth Hitchcock Clinic for the property at 58 Hawthorne Drive, which will provide the town 50% of the total tax rate; the agreement is reported to be for an initial five-year term with a five-year extension and was cleared by counsel on both sides.
The Bedford Town Council on July 16 approved a payment-in-lieu-of-taxes agreement with Dartmouth Hitchcock Clinic covering 58 Hawthorne Drive (Lot 24‑1‑4), accepting a voluntary payment equal to 50% of the total tax rate for the property.
Town Manager Rick Sawyer told the council the town recognizes Dartmouth Hitchcock Clinic as a nonprofit corporation under RSA 72:23:5, which would ordinarily exempt the property from taxation. In negotiations, the clinic agreed to make a payment equal to half the total tax rate. Sawyer said the agreement had been reviewed and approved by attorneys for both sides and conforms with a prior settlement agreement between the town and Dartmouth Hitchcock.
Sawyer characterized the payment as an opportunity for the town to receive funds that otherwise would not be available. He said the initial term is five years with a five‑year extension. Councilor Strand moved approval; the motion was seconded and the council approved the agreement by voice vote.
Discussion versus decision: staff presented the agreement and legal basis, councilors asked about term length, and the council took formal action to approve and authorize execution by the town manager.
Clarifying details: the property listed in the motion was 58 Hawthorne Drive, Lot 24‑1‑4; Sawyer stated the agreement represents 50% of the total tax rate; he reported both sides’ attorneys approved the document; Sawyer said the initial term is five years with a five-year extension.
What happens next: the town manager was authorized to execute the agreement on behalf of the town and to process the payments per the agreement’s terms.
