MANCHESTER, N.H. – The Manchester Board of Mayor and Aldermen (BMA) expressed their frustration with a request from the developer of a nearly completed residential Grand Central Suites building on Central Street regarding 79-E tax credits, ultimately approving the request regardless.
The request, presented by Attorney Eli Leino at the BMA’s June 2025 meeting, noted that Grand Central Suites LLC centered around the sale of the project to GCS QOZB LLC, who is financing the acquisition through PSG CH Lending. As part of the financing agreement, PSG CH is requiring that it be the first in line to be reimbursed with insurance money if the building is destroyed and not reconstructed.
In addition to a set of variances and later variances from the Manchester Zoning Board of Adjustment as well as a impact fee discount from the Manchester Planning Board Central Suites LLC also received 79-E relief from the BMA. Part of the 79-E agreement states that Central Suites LLC would pay the city back the lost tax revenue it gave through the 79-E request before anyone else if the building were destroyed and not quickly reconstructed.
Leino told the board that if this change did not happen, the sale likely would not happen, implying that the building could remain uncompleted.
This matter was initially meant to go through the BMA’s committee process, but Manchester Mayor Jay Ruais requested that the matter come before the full board due to time sensitivity and no additional BMA meetings this month.
Manchester Economic Development Office Director Jodie Nazaka, the city’s principal expert on the 79-E process, stated that this request was similar to another request granted by the BMA on a Canal Street property. That statement did not satisfy several members of the board.
Ward 5 Alderman Tony Sapienza chided Grand Central Suites LLC for reneging on its agreement with the city. He also joined Ward 6 Alderman Crissy Kantor, Ward 4 Alderwoman Christine Fajardo and Alderman At-Large Dan O’Neill for reneging on payment agreements with subcontractors that worked on the project. Ward 3 Alderman Pat Long expressed concern whether there might be further modifications and Ward 7 Alderman Ross Terrio said that this example may be a sign that more thorough investigation is needed for future 79-E requests.
Regarding the subcontractors, Leino told the board that the subcontractor matter was a separate subject to what was before them and Ruais said that legal requirements are in place protecting the subcontractors. In terms of Long’s concerns, Leino said that there would have to be something catastrophic for the building to be sold again in the near future and Nazaka said that part of the issue was steel frames rather than wood frames being used for the building, which is a rarity in Manchester and was more expensive than expected.
The request passed on an 8-6 vote. Opposition came from Long, Tony Sapienza, Kantor, O’Neil, Ward 8 Alderman Ed Sapienza and Ward 1 Alderman Chris Morgan.