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Committee endorses five‑year pilot to let BFA lease surplus DOT land to spur development
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Summary
The House Executive Departments and Administration Committee moved SB 56 with an amendment creating a five‑year window for the Business Finance Authority to petition the Department of Transportation to transfer surplus land for long‑term leases intended to lower financing costs and encourage development; the amendment and a committee OTP passed 16‑0 and were placed on consent.
Representative Erica Leon, sponsor of the amendment to Senate Bill 56, told the House Executive Departments and Administration Committee that the measure would create a “surplus land revitalization program” giving the Business Finance Authority (BFA) a five‑year window to petition the Department of Transportation (DOT) to transfer title to state parcels deemed surplus for leasing or sale.
"This program is designed not only to give the Department of Transportation another option in disposing of their surplus land, it's also designed to make these parcels more attractive to potential developers," Leon said, describing the bill as modeled on existing law that permits transfers to the New Hampshire Housing Finance Authority.
Alex Holdreuth, Governor Ayotte’s policy director, said many DOT parcels are remnant parcels with no current higher use and that a leasing model can reduce upfront capital burdens for developers. "Leasing a parcel can be a preferable mechanism for development when compared with an outright sale," he said, arguing that lease terms and negotiations with BFA could streamline the process.
James Key Wallace, executive director of the New Hampshire Business Finance Authority, outlined how BFA would operate the program: BFA would take title to surplus DOT parcels only with DOT’s agreement, lease land to private developers who would secure municipal permits, and ensure that users of the property pay municipal taxes. Wallace said statutes require proceeds affecting highway funds and bond covenants be satisfied when land originally purchased with highway funds is conveyed.
David Rodrigue, commissioner of DOT, described the proposal as an additional, voluntary tool for disposing of surplus parcels and reiterated that any transfer still must clear the department’s long‑range capital planning process and governor and council approvals. Rodrigue said DOT is focused on roadbuilding and does not have the capacity to manage long‑term leasing and property development at scale.
Committee members pressed witnesses on minimum lot sizes, eminent domain, and whether municipal zoning would be bypassed. Witnesses repeatedly said the amendment does not change municipal zoning authority and would generally require municipal approvals for any privately owned vertical development on leased state land.
After public testimony and questioning, the committee adopted a prospective five‑year sunset on the transfer authority to ensure the program can be reviewed by a future legislature. In executive session the committee adopted amendment 1494h and then voted 'ought to pass' on SB 56 with that amendment by roll call, each recorded as 16‑0; the item was placed on the committee's consent calendar.
Next steps: With the committee report on consent, the bill will proceed toward floor consideration under the usual legislative calendar.
