STATE
OF NEW HAMPSHIRE
DEPARTMENT
of RESOURCES and ECONOMIC DEVELOPMENT
172 Pembroke Road, P.O. Box 1856
Concord, New Hampshire 03302-1856
Phone: (603) 271-2591 Fax: (603) 271-6784
October 22, 2001
Mr. Peter Griffin, President
New Hampshire Railroad Revitalization Association
RE: Investing in the State of New Hampshire
Dear Peter and Members:
I want to thank you for the opportunity to speak to you and your membership tonight regarding how our office works in trying to bring economic development to the state of New Hampshire.
Our office, the Office of Business & Industrial Development (OBID) talks to companies and/or their representatives (site consultants, real estate professionals, etc.) on a weekly and sometimes daily manner about the possibility of their clients making an “investment” in the state of New Hampshire. We assist small and large businesses in expanding in or relocating to the state.
I have taken the liberty of preparing this introductory letter to investing in the state of New Hampshire for your review. I hope this letter and any attached documents will answer your questions about doing business in New Hampshire. Welcome to the Granite State.
In case you or your clients are unaware, New Hampshire still is one of only two states that do not have a sales tax or an income tax. New Hampshire does not have a tax on equipment, inventory, machinery or capital gains. The cost for unemployment insurance is significantly lower compared to other states. These factors alone should add to any business "bottom line".
New Hampshire has consistently been ranked as one of the best places to live in the United States and to do business. According to the 2001 Morgan Quitno Press and the 2000 PSNH New Hampshire Economic Review (2001 report is due December 2001), the state of New Hampshire has earned high marks. These marks are as follows:
Ø New Hampshire ranks 1st in New England and 1st nationally for Favorable Tax Climate”
Ø New Hampshire ranks 1st in New England and 2nd nationally for Child & Family Well-Being”
Ø New Hampshire ranks 1st in New England and 2nd nationally for the "Safest State"
Ø New Hampshire ranks 2nd in New England and 3rd nationally as the "Healthiest State"
Ø
New
Hampshire ranks 3rd in New England and 13th nationally,
as the “Most Livable
State”
If you access our webpage (www.nheconomy.com) and scroll to the section that deals with the "State‑to‑State Comparisons", please take the time to review how New Hampshire measures up verses the other states in the nation. We think you will find that New Hampshire will be a lower cost state to do business than most of the others. (Please note that our corporate rate has increased to 8.5% and the telecommunications tax has increased to 7% for 2001).
Why pay higher corporate taxes, personal income taxes, inventory taxes or a machinery tax? New Hampshire does not have these taxes. Locating your business to the Granite State makes good economic sense. Sometimes, less of certain items (taxes) hopefully will be more beneficial to companies, such as yours. Why not keep more of what you earn rather than paying it to government agency. Information on the various state taxes that a company might be required to pay while doing business in the state can be found at the Department of Revenue Administration website. To access their site click the following: http://webster.state.nh.us/revenue/gti-rev.htm.
New Hampshire offers a "low‑cost" job-training program to qualified companies. Also, manufacturing companies have an opportunity to obtain long term fixed financing up to $10,000,000 (provided they meet the lenders underwriting criteria) at an interest rate that is approximately 70% of the prevailing prime interest rate using the Industrial Revenue Bond Program. Presently, that rate would be approximately 5.00% to 5.25%. Detailed information on this program can be obtained by contacting Mr. Andy Bonte at the Business Finance Authority at (603) 271-7847 or click on their web site: http://www.state.nh.us/bfa/bfa.htm.
My job, as one of the two State Industrial Representatives, is to assist in‑state companies with their expansion needs, as well as recruit companies from other states (or around the world) to locate to New Hampshire. Job growth is one of the keys to economic prosperity.
We work with companies in identifying sites (land or existing improvements) that best meet their investment criteria. We can provide assistance (if requested) in identifying those professionals that a company might need to contact in order to obtain approvals (environmental, surveyors, architects, attorney’s, etc.) to construct a new facility or negotiate leases. We can assist in identifying contractors that could give estimates on tenant improvements or build-to-suit opportunities. We can arrange for companies to meet with various lenders, if financing is needed, and so on. The list goes on and on. Our office prides itself on total customer/client satisfaction.
Once a site is identified, we suggest that company’s meet with the local economic development individual or group that serves that city/town or area. Their insight and knowledge on how the community operates can be very advantageous. We (the state office) may not have all the answers to your questions, but we will do our best to get them for you. Our goal is to have you as educated as possible on the benefits of doing business in our state.
Our philosophy toward economic development is different. We do not believe in providing financial subsidies to companies locating to our state. Generally, subsidies have a finite life and after they end, the recipient becomes subject to the taxation necessary to generate all future subsidies. In New Hampshire, we concentrate our efforts toward minimizing all taxation and allowing companies to maximize their profits year after year.
There are a few New Hampshire websites that you should take a look at as you gather information on our state. They are as follows:
This site brings you to the state’s front page. From this page, you can then link to many of
the various departments within the state’s government: Government; Living in
NH; Working in NH; Education; and many more.
Our web site address is www.nheconomy.com.
If your company exports products, our sister office, the Office of
International Commerce is ready to serve you. Their web site address is: http://www.globalnh.com/export/index.html.
If you would like to search for industrial/commercial/office properties within
our database, click on the following link: http://www.nheconomy.com/newnedds.
Once the screen appears, click on either the “Buildings” link or the “Sites and
Industrial Parks” link and begin your search.
If you want to sell products to the Federal Government, check out the NH
Procurement Technical Assistance Center web site link: www.nheconomy.com/ptac.
2) http://www.nhes.state.nh.us/elmi/pubs.htm
This site brings you to the one of the NH Employment Security web pages. This page allows you to select from Economic Analysis reports, Economic Statistic reports and Specialty Publications. The main web site for Employment Security is http://www.nhes.state.nh.us. This site has many, many reports and updates that can assist a company in its decision making process.
3) http://www.newhampshire.com
This site links you to some of the following organizations: Travel & Tourism; Sports & Leisure; Business; Education; and living in New Hampshire. Companies interested in knowing whom the largest employers are in a particular city or town can obtain that data by accessing the New Hampshire Office of State Planning (OSP).
Their web address is: http://www.state.nh.us/osp/planning/sdc.html. Once the page opens, scroll down to the heading titled “General Information On New Hampshire”. At this point, click one of the two links provided to get the information your require. Information on the 2000 Census can also be obtained on this site. OSP is also the administrator of the Community Development Block Grant Program that provides grants up to $20,000 per job created. Details on the CDBG Program can be obtained at: http://www.state.nh.us/osp/cdbg/index.htm.
Companies interested in the high-tech industry can contact the Software Association of New Hampshire. Their web address is: www.swanh.org. This group promotes and supports the software and Internet industry in the state. Another organization that assists, in this same manner, is the New Hampshire High Technology Council. They can be reached at www.nhhtc.org.
Companies interested in the biotechnology field can find detailed information by accessing the New Hampshire Biotechnology Council at www.nhbiotech.com. To date, there are over 80 Biotech companies that have joined the council. Their mission is to “promote and grow” biotechnology (including life sciences, biosciences and medical sciences) industry in New Hampshire.
A growing number of individuals and companies have asked for information pertaining to the weather that we have in New Hampshire. Details on the weather can be found at the following site: http://www.weather.com. Click on the “forecast and map” link (upper left hand corner) and then click on the “averages and records” link.
Information on our outstanding airport facility (Manchester Airport) can be achieved by clicking their web site: www.flymanchester.com. Manchester Airport is one of the fastest growing regional airports in the country. It’s one of the many gems located in our state.
Questions as to the cost/pricing of residential real estate can be found at the New Hampshire Association of Realtors web site: http://www.nhar.com. You can research prices for existing homes by city and town. Historical data by county can also be obtained. This data shows the average selling price, days on the market, etc. You can also search for a Realtor.
An excellent B2B business site is: www.buzgate.org. It links not only businesses, but also incorporates links to various local communities that are not found elsewhere. It also shows someone the steps required (or to be considered), if they want to start a business in the state.
Companies interested in the machining industry can visit their web site: www.nhmachine.org.
Hopefully, you will find this information helpful. I plan on contacting you within the coming days about your request. Should you require assistance before then, please do not hesitate to call me directly at (603) 271‑2591 or send me an e-mail at jrdinapoli@dred.state.nh.us.
Sincerely,
John R. DiNapoli
Industrial Representative
STATE
OF NEW HAMPSHIRE
DEPARTMENT
of RESOURCES and ECONOMIC DEVELOPMENT
172 Pembroke Road, P.O. Box 1856
Concord, New Hampshire 03302-1856
Phone: (603) 271-2591 Fax: (603) 271-6784
State's New
Real Estate Database Unveiled
Posted: Fri., May 11, 2001
This week, the New Hampshire Office of
Business & Industrial Development unveiled the 2001 version of the New
Hampshire Economic Development Database System (NEDDS).
This NEW system has been designed to be very “user
friendly". The long awaited upgrade of NEDDS has been successfully
accomplished by the hard work of various individuals within the Office of
Business & Industrial Development (OBID) along with its advertising agency,
the Glen Group of North Conway, NH. Special thanks to John R. DiNapoli of OBID
and Mr. Kevin Murphy, Director of Technology at the Glen Group (603-356-3030)
for their enthusiasm, determination and commitment to this project.
Think about what NEDDS was before. It was a “DOS”
based program that met the needs of the “user” 7-8 years ago. The user had to
manually fill out the building/land forms that were two and three pages
long, a process that took anywhere between 15-30 minutes. They then had to
submit the forms to OBID. Then someone at OBID had to enter the
information into the database, a process which also took 15-30 minutes.
Once that was completed, the listing was mailed
back to the user for verification and correction and then sent back to OBID for
approval. It took between 5-14 days before the listing went “live” on the
database. Not so anymore!
The new NEDDS program will allow the “user”
(property owner or real estate professional or designee representing the owner)
to submit a property and have it “LIVE” on the Internet for millions to view
within minutes. PLEASE NOTE: This site is to be used for commercial,
industrial and office properties (land and/or buildings) only. No residential
properties should be listed on this site.
To gain entry to the new 2001 NEDDS database,
click on the Office of Business & Industrial Development's website link (www.nheconomy.com). This is the OBID front
page. On the righthand side, click on the “Relocate or Expand Your Business in
NH” link (www.nheconomy.com/obidindex.html).
Then click on it a second time to get the following address (www.nheconomy.com/movebiz.html).
At this point, click on the link in the upper lefthand corner entitled “Search
Real Estate” and you will come to the following page:
Current Opportunities in New Hampshire. (www.nheconomy.com/movebiz.html?clickid=1&table=categories)
At this point you can do one of three
things:
1) Search for existing industrial buildings;
2) Search for existing sites and industrial parks
or;
3) Add a property to the database.
By clicking on this link (www.nheconomy.com/newnedds) you
can now do one or all three items. To activate your selection, click on the
picture or the link provided on the page. The addresses are as follows:
1. Search existing buildings link: (www.nheconomy.com/newnedds/buildings.html)
2. Search sites & industrial parks: (www.nheconomy.com/newnedds/land.html)
3. Add a property to the site: (www.nheconomy.com/newnedds/professionals.html)
If you select the “SEARCH” industrial facility
matching (buildings) or sites and industrial parks, then fill in your search
criteria. Once you are done, click on the “search” key and await your response.
Both search criteria are very similar.
If you chose to “ENTER” a property into the
database using the Professionals link (www.nheconomy.com/newnedds/professionals.html),
you will be asked for your “USER NAME” and “PASSWORD”.
If you have not yet registered, then click on the “click here to register”
link. You will be required to fill in the 12 item form. The fields in the form
are: Agent Name; Agency; Phone; Fax; E-mail; Address; City; State; Zip;
Preferred User Name; Password; Password (verify). When completed, click on the
“submit” button.
Once you have completed this required task, you are ready to submit a listing.
If you have a USER NAME and PASSWORD, enter them and begin. The screen that
greets you is your own personal screen. When you enter this section of the web
site (using your user name and password), it will show you the properties that
YOU have submitted under that particular user name and password. You and ONLY
you (other than the Administrator of the NEDDS system) can make a change to
those properties.
From this point, you can add a building, a parcel of land, change some
information regarding the Agent (you), edit your existing properties, add
a photograph and so on. NEDDS has never been like this before. This is only the
beginning.
To enter a listing, there are REQUIRED FIELDS that MUST be filled in. There can
be NO blanks. There’s a total of only 36 REQUIRED FIELDS. If the user does not
enter something in the REQUIRED FIELD, the property will not be uploaded to the
Internet. This system (unlike others) has been programmed to let the user know
what field was missed, so that it can be easily corrected. There is also an
“Optional Field” where the user can enter more data, if they elect to do so.
The basic REQUIRED FIELDS are as follows: Listing Name; Listing Status (a drop
down box); Street Number; Street Address; City (a drop down box); State; Zip;
County (a drop down box); Directions; Description; Available for Lease; Lease
Price; Lease Method; Available for Sale; Sale Price; Lot Size; Rail Service;
Year Built; Gross Square Feet; Number of Floors; Heating; Electric Volts; Amps;
Phase; Delivery (truck door, docks); Ceiling Height; Sprinkler System; Parking
Spaces; SF Office; SF Warehouse; SF Manufacturing; Utilities; Zoning; Real
Estate Taxes and Year of Taxes.
OPTIONAL FIELDS are as follows: Road Frontage in Feet; Topography; Traffic
Count; Signal; Deed Type (a drop down box); Book Number; Page Number; Property
Easements; If Yes, Please Explain; Surveyed; Current Use of Property; City/Town
Tax Map Number; City/Town Lot Number; Environmental Site Assessment; What Level
(a drop down box); Can The Building Be Expanded; Approved Subdivision Plan; Can
Subdivision Plan Be Obtained; Roof Type; Construction Type; Exterior
Construction; Is The Building ADA Compliant; Floor Load Factor; Floor Plate SF;
Clear Span; Column Spacing; Does The Property Allow For Outside Storage and
Details Of Outside Storage.
The REQUIRED FIELDS and OPTIONAL FIELDS are similar for site and
industrial park property submissions.
The goal of the new 2001 NEDDS database system is to make it a highly efficient
and effective marketing tool for anyone in the economic development field.
Whether you’re a real estate professional, a property owner, a lender, an
economic development individual or a company considering an expansion or
relocation to the state of New Hampshire, this system has been designed
for you. Best of all it's “free” of charge.
We appreciate you using the new 2001 NEDDS database system. If you have any
questions on how to operate the new system, please contact John R. DiNapoli,
Industrial Representative at the Office of Business & Industrial
Development at 172 Pembroke Road, P.O. Box 1856, Concord, NH 03302-1856 or by
telephone at (603) 271-2591 X114 or by e-mail at jdinapoli@dred.state.nh.us
STATE
OF NEW HAMPSHIRE
DEPARTMENT
of RESOURCES and ECONOMIC DEVELOPMENT
172 Pembroke Road, P.O. Box 1856
Concord, New Hampshire 03302-1856
Phone: (603) 271-2591 Fax: (603) 271-6784
New Hampshire Industrial and Office
Real Estate Index—2000
2000 N.H.
Economic Climate – Strong Growth
New Hampshire continued to
out-perform the rest of New England states in terms of growth in population,
employment, and gross state product.
Much of this growth was fueled by regional and local high tech
businesses moving into and expanding within New Hampshire.
The result was a continuing demand
for skilled workers and real estate to accommodate the growth. The majority of this growth occurred from
Concord (which has seen two office projects, and several new retail boxes),
east to Portsmouth and south to Nashua.
However other areas such as Tilton/Franklin and Lebanon also experienced
increased relative absorption in 2000.
The vacancy for buildable land
south of Manchester and the Portsmouth area tightened last year, reflecting an increase in land values from $90,000 to
$120,000 per acre. Office rental rates
for first class office space in these same regions rose from an average high
two years ago of $22.00 to $27.00, gross (other regions of the state are
substantially less costly—see index on next page). However, compared to the Boston metro area where office rents
reach as high as $70.00 per square foot, New Hampshire rates are still viewed
as attractive alternatives.
2001
Projections – Above Average Economic Uncertainty
It is anticipated that as the
national and regional economy continues to slow down in 2001, that New Hampshire office space and R
& D vacancies will rise. There will
be more available office sublease space as well as more traditional
manufacturing space. It is expected
that there will be an increase in company layoffs, as a result of high tech and
telecommunication markets experiencing fewer customer orders, bad loans, and
surplus in inventory. This, combined
with possibility of foreign investors fleeing the United States stock market to
invest in the rising Euro, could affect the national and regional real estate
markets by spring 2001. However, it is
hoped that the expected tax cuts, and continued reduction in interest rates
will increase consumer confidence, gradually increasing corporate profits and
broaden the equity markets by early 2002.
Unlike other states, New Hampshire
and regional banks have remained relatively conservative and new construction
in the state has been low compared to major metropolitans areas in the United
States. It is expected that areas with
tight vacancies will see slight migration of in-state businesses—from Pease
International Trade Port in Portsmouth to Dover and Rochester, and from Nashua
and Manchester north and east to Concord and Auburn. The North Country and Sullivan County will be poised to offer
cost effective real estate for companies who are carrying high rents in areas
such as Lebanon and Hanover.
New Hampshire Commercial Real Estate Index
|
City/Town |
Industrial Land Price/Acre(1) |
Industrial (A) Rent PSF NNN* |
Office (A) Rent PSF Gross** |
|
Nashua |
$115 - $130 |
$5.75 - $6.25 |
$25.00 - $29.00 |
|
Manchester |
$70- $90 |
$5.50 - $6.00 |
$19.00 - $23.00 |
|
Salem |
$115 - $130 |
$5.75 - $6.25 |
$19.00 - $23.00 |
|
Keene |
$45 - $55 |
$5.00 - $5.50 |
n/a |
|
Portsmouth (Pease Trade Port) |
$95 - $110 $13 (ground lease) |
$5.50 - $6.50 $6.00 - $7.00 |
$20.00 - $26.00 $22.00 - $26.00 |
|
Dover |
$30 - $45 |
$4.50 - $5.25 |
n/a |
|
Rochester |
$30 - $45 |
$4.25 - $4.75 |
n/a |
|
Concord |
$50 - $60 |
$5.00 - $5.75 |
$16.00 - $20.00 |
|
Claremont |
$15 - $25 |
$3.75 - $4.75 |
n/a |
|
Hanover |
$90 - $110 |
$6.00 - $7.00 |
$18.00 - $22.00 |
|
Laconia |
$40 - $50 |
$3.00 - $4.00 |
n/a |
|
Littleton |
$25 - $35 |
$2.50 - $3.50 |
n/a |
|
Berlin |
$5 - $10 |
$2.00 - $2.50 |
n/a |
(1) Land values are shown in thousand dollar
increments ($ 000)
* NNN=
In addition to base rent, tenant pays common area maintenance, insurance and
property taxes. Triple net charges
range from $1.80 to $2.75 psf.
** Gross=
In addition to base rent, tenant pays electricity for lights and plugs.
STATE
OF NEW HAMPSHIRE
DEPARTMENT
of RESOURCES and ECONOMIC DEVELOPMENT
172 Pembroke Road, P.O. Box 1856
Concord, New Hampshire 03302-1856
Phone: (603) 271-2591 Fax: (603) 271-6784
|
|
John R. DiNapoli
State Industrial Representative
NH Office of Business and Industrial
Development
P.O. Box 1856
Concord, NH 03302-1856
Tel:
(603) 271-2591 / Fax: (603)
271-6784
E-Mail: jrdinapoli@dred.state.nh.us
Website: http://www.nheconomy.com/
Background: John
R. DiNapoli represents clients (real estate professionals as well as
corporations) and performs a wide range of services ranging from site selection
and personal real estate tours to detailed customized tax comparison reports.
A New Hampshire native, John has been an active real estate
professional since 1984 working with various firms as well as serving as an independent
broker. In 1997, he was recognized as the NH Commercial Investment Board of
Realtors’ (CIBOR), “Realtor of the Year.” John remains an active member in the
CIBOR organization. He is an immediate past director (2000), as well as a
current representative of both the Affiliate Committee (co-chairman) and the
CPE Committee. He joined the state’s economic development team in March of
1999.
John and his wife Joy currently reside in the town of Windham, New
Hampshire with their three children (triplets), Nathan, Kate and Heather.
Services: His services include:
·
· Confidential real estate reports and
personal tours that help brokers and corporate clients quickly find the best
land sites or
buildings.
·
· Facilitation of the state permitting
process to help save time and construction costs.
·
· Access to key regulatory and political
decision makers.
·
· Assistance in identifying various
financing opportunities.
·
· Access to job training and recruitment
programs.
Education: BA, New England College, Henniker, New Hampshire
1984 - Business Management.
CCIM courses successfully completed:
CCIM 101, 102 and 103.
Various real estate courses and economic
development classes.
