Out of the ashes: Hampton Beach businesses plan economic development summit

Return to Table of Contents

By Patrick Cronin

Seacoast Sunday, March 14, 2010

[The following article is courtesy of the Seacoast Sunday and Seacoast Online.]

The devastation can be seen clearly from 500 feet during a ride with chief pilot Randy Clark of Ace Helicopter, based at Hampton Airfield.
[Scott Yates Photo]

Driving down Ocean Boulevard at Hampton Beach it's virtually impossible not to notice the charred remains that were left after a Feb. 26 fire leveled a block of businesses, including the Surf Motel, Happy Hampton Arcade and Mrs. Mitchell's gift shop.

That block now joins the former Old Salt location that has been vacant since it burned down 10 years ago and the site of where the bankrupt Royal Shores property was supposed to be built as empty space.

Add the recent "for sale" signs plastered on several well-known commercial properties, and some are beginning to wonder about the Hampton Beach business community.

"We need to all work together to rejuvenate the jewel that is Hampton Beach," said John Nyhan, chairman of the Hampton Area Beach Commission. "We have been talking about this for a while but I think the fire and the recent number of 'for sale' signs have made this a major priority."

While parts of the beach are getting a remake with the state pouring $14.5 million to construct two bathhouses and a new Seashell Stage complex, Nyhan said the business community needs to reinvent too. Vacant lots need to be developed, businesses for sale need to be sold to the right kind of buyer, and run-down establishments need to be remodeled.

To kick off the initiative, the commission is partnering with the town, Hampton Area Chamber of Commerce and the Hampton Beach Village Precinct to host an economic development summit in May.

According to Nyhan, the summit will focus on brainstorming economic and commercial strategies to help support the businesses along Ocean Boulevard.

"We need to get everyone on the same page working together," said Nyhan. "Part of that is finding ways to help business owners rebuild, rehab existing lots as well as bring in new investors to fill vacant lots and buy for sale properties. It's about creating public-private partnerships."

Nyhan said some business owners have already taken the initiative by reinvesting in their properties, including the Boardwalk Inn and Cafe, Sea Ketch and the building that was once Guido Murphy's.

And what about the businesses that might not be on board?

"It may be time to suggest to those business owners that are not willing to partner with us that maybe they should move somewhere else." said Nyhan.

Hampton Beach Village Precinct Commissioner Chuck Rage said he thinks everyone needs to work together to revitalize the economic engine of the town and state.

One of their first priorities, he said, should be helping the owners of the buildings destroyed in the February fire to rebuild.

Selectman Richard Bateman, who also sits on the Planning Board, agrees.

"We need to make sure things are fast-tracked," said Bateman. "I would rather see that corner all summer in a state of reconstruction than the state it is in, which is deconstruction."

The other goal, said Rage, is to find investors for the two other vacant lots.

The Old Salt lot has been used for parking for the last seven years as plans to construct a 42-unit residential condominium building with ground-floor retail were put on hold, first due to litigation and now the economy.

The lot is currently for sale as is the Royal Shores project that went bankrupt.

Rage said ideally he would like to see new hotels constructed on both lots.

"Over the years we have lost so many hotels," said Rage. "We need more hotel rooms, not less. The more people staying at the beach, the more prosperous the beach will be."

While there is a growing number of "for sale" signs on properties, Rage said he doesn't think it's a mass exodus; rather just the state of the economy.

Other properties on the market are La Bec Rouge, the Moulton Hotel and the Shirley Inn Motel.

"Properties are for sale all the time at Hampton Beach," said Rage. "My business is for sale for the right price. I think the reason people are noticing it more now is because properties are staying on the market longer now."

Bob Preston, of Preston Real Estate, said the reason the properties remain on the market is because it's hard for new investors to come into the beach community right now.

"There is a lot of opportunity, but it's hard for some people to buy," said Preston. "You need a fair amount of money in order to finance these things. If not, the banks will not touch you today. The banks are being very conservative."

Tom McGuirk, of Weichert Realtors Yankee Trader, said adding to the hesitation of the banks is the short beach season.

"It's a unique market, especially for restaurants," said McGuirk, who owns McGuirk's Restaurant at Hampton Beach. "You have a busy summer season and a very slow off-season."

McGuirk thinks these properties will soon start to sell. He recently noticed a resurgence in home sales. Commercial real estate, he said, almost always lags behind the housing market.

Nyhan said when the market returns they want to make sure the right kind of investor comes into the beach. He hopes the economic summit can address ways to extend the beach season, issues such as possible public/private financing as well as tax incentives to attract more businesses.

"It's not going to solve Hampton Beach's problems overnight," said Nyhan. "But at least it will be a step in the right direction. "

The ultimate goal, he said, would one day to be able to hire an economic developer, whose full-time job would be attracting investors to the beach.


The lot where the Old Salt restaurant used to be has been vacant for a decade. It has been used for parking the last seven years as plans to construct a 42-unit residential condominium building with ground-floor retail were put on hold.
[Scott Yates Photo]
During a ride with Chief Pilot Randy Clark, from Ace Helicopter from Hampton Airfield, the charred remains from the Feb. 26 fire are seen from 500 feet over Hampton Beach, NH, Wednesday, March 10, 2010.
[Scott Yates Photo]
During a ride with Chief Pilot Randy Clark, from Ace Helicopter from Hampton Airfield, the charred remains from the Feb. 26 fire are seen from 500 feet over Hampton Beach, NH, Wednesday, March 10, 2010.
[Scott Yates Photo]
The charred remains of Mrs. Mitchell's gift shop as photographed from Ace Helicopter piloted by Randy Clark.
[Scott Yates Photo]
The vacant lot next to Ron's Landing was at one time to be the home of the now bankrupt Royal Shores project.
[Scott Yates Photo]
Return to Table of Contents