Portsmouth council approves conditional use permit for Newport Phase 2 attached housing

Portsmouth — The Portsmouth City Council on Jan. 13 adopted a conditional use permit (UP-25-11) permitting attached housing — townhouses and condominiums — at 3741 Elliott Avenue as part of the long‑planned Newport Phase 2 development, approving the item by an electronic vote of 7–0.

Tim Culpepper, principal with Canopy Development Group, told the council the Newport master plan dates to 2004 and called Phase 2 a long‑awaited step to complete an originally three‑phase project. The company acquired Phase 2 at a tax auction in January 2025 and said the updated site plan submitted in May 2025 was found by the city zoning administrator to be in substantial conformance with the original design guidelines in June 2025.

“Entry‑level pricing for Newport will be in the high $200,000s,’’ Culpepper said, and he estimated average prices would fall in the mid‑$300,000 range. He described the project as delivering affordability through design — density, a mix of housing types and proximity to employment centers — and said mandated or regulated affordability components are challenging now because of existing zoning and outstanding Community Development Act (CDA) bonds that must be serviced.

Why it matters: The vote clears the way for the developer to move into site design and civil plan review. The project reactivates a multi‑decade plan for roughly 1,600 units across three phases, and the CUP specifically governs attached housing types in Phase 2 that were always intended in the master plan.

Council members pressed the applicant on affordability, school impacts, traffic and long‑term maintenance. Councilman Tillich asked whether the developer would be willing to “allocate up to 10% of the development to be attainable and affordable units,” noting local wage levels make even high‑$200,000 starter homes out of reach for many residents. Culpepper replied the applicant would consider the idea but said lacking density‑bonus flexibility and the obligation to service CDA bonds makes a mandated set‑aside difficult at this stage.[1]

Councilwoman Thomas sought clarification on unit counts in the packet; the applicant and staff explained the CUP applies to attached housing and that differences in the packet arise where some attached units are planned as fee‑simple townhouses rather than condominium units. Culpepper said the attached‑housing portion considered under the CUP totaled about 299 units in the materials presented to council.

On engineering, Culpepper said the project team updated traffic projections by incorporating the traffic study prepared for the nearby casino, adding the Newport density and submitting recommended roadway improvements as part of civil plan submittals; some recommendations have already been implemented, he said. He also said stormwater requirements have changed since 2006 and the updated plan now includes two large stormwater ponds to meet current state regulations.

Councilman Dodson raised a recurring concern about long‑term maintenance for retention ponds and whether homeowners associations have enforcement power. Culpepper said the HOA documents will assign perpetual maintenance responsibility and that HOAs typically have lien and foreclosure mechanisms to collect dues.

The public hearing drew no public speakers on the item and closed before the council moved to adopt the use permit by motion and electronic vote (7–0). Culpepper said the team will continue with civil plan submissions, community outreach to nearby residents and further coordination with schools and city departments as design proceeds.

What’s next: The developer will continue civil engineering review with city staff; council and staff said they expect the applicant to engage neighborhood HOA leaders and school officials as schedules and construction timing become clearer.

[1] Culpepper described CDA bond obligations and existing zoning limits that affect options for density bonuses or mandatory affordability; those constraints were cited in council discussion.