County manager and sponsors push bill to require fair-market terms for state lease renewals

Senator Keith Murphy (acting in lieu of Representative Aaron) introduced House Bill 694, which would require renewal leases for land, buildings, or space by state agencies to be negotiated at fair market value unless the property owner agrees otherwise.

Derek Ferland, Sullivan County manager, testified that the state’s statutes provide limited guidance for leasing compared with property acquisition and said the state held "approximately 90 leases, covers about 2,000,000 square feet and $14,000,000 a year." He described rent-renewal negotiations as sometimes resulting in renewal amounts "far less than the market value of the space," with local taxpayers then paying any resulting costs associated with the property. He recommended statutory guidance that would allow recalibration of lease payments to reflect changes such as rising utilities and custodial costs.

Kate Horgan of the New Hampshire Association of Counties said the association supports the bill as amended by the House and emphasized flexibility for unique properties such as courthouses, noting that some counties have negotiated special leases they want to retain. Representative Vanessa Sheehan (House eDNA committee) said the House amendment added negotiation language for utilities and custodial services and that the amended bill improves lease negotiation processes for both state and political subdivisions.

The committee heard testimony and questions but recorded no committee vote or final action in the transcript.