NH Liquor Commission seeks buyer to redevelop two properties for a 22,000-square-foot Liquor Outlets on both sides of I-95

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Selling liquor and wine along the state’s two interstate highways is such good business for the state of New Hampshire that it wants to bolster those sales with new stores on Interstate 95.

The New Hampshire Liquor Commission is in the process of seeking a buyer to redevelop two commission-owned properties on the north and southbound sides of the I-95  in Hampton that connect New Hampshire with Massachusetts and Maine.

The commission intends to see both sites redeveloped into new 22,000 square foot state-of-the-art N.H. Liquor & Wine Outlets as well as highway-oriented services, including gas stations, electric vehicle charging stations, restaurants, informational and other travel-related amenities.

Currently, the two sites offer only alcohol sales. What’s envisioned for I-95 is along the lines of what is currently offered along Interstate 93 in Hooksett in terms of not only liquor sales, but refueling, restaurant food, and visitor information.

“Very few sites in the country offer the unique development opportunities available in Hampton,” said N.H. Liquor Commission Chairman Joseph Mollica.

According to the commission, Interstate 95 is one of the busiest stretches of highway in New England, an average of 86,000 vehicles per day in both directions with summertime peaks of over 125,000 vehicles per day.

And the property has direct highway access – it’s easy off, easy on, no exits to circumnavigate. Also, at 88 acres, the size of the parcels accommodate a number of potential uses. And it said having two 22,000-square-foot outlets as anchor tenants – about double the size of the current stores – provides a substantial customer base to support other uses on the site.

Over the past several years, the commission has been on a strategic mission to renovate and upgrade its outlets throughout the state. It has renovated and relocated outlets in 42 communities over the past 15 years – adding more than 350,000 square feet of retail space.

While overall liquor and wine sales at outlets increased during the COVID pandemic, some highway sales dipped, given the travel restrictions. The commission said it saw an uptick in sales at highway locations as travel resumed in 2022, but experienced a flattening in alcohol sales in 2023 in line with national and global trends.

Industry analysts say liquor sales in the U.S. were flat in 2023 due to difficult economic conditions like inflation and interest rates, which have led to less consumer spending. Thespiritsbusiness.com dubbed 2023 as a “reset year” for spirits sales.

Here are the New Hampshire numbers:

• In Fiscal Year 2019, the commission reported $706.1 million in total annual sales and a net profit to the state of $162 million;
• In FY 2020, the commission reported $739.6 million in total sales and net profit of $158.1 million;
• In FY 2021, the commission reported $801 million in total sales (an all-time high) and net profit of $182.5 million (also a record);
• In FY 2022, the commission reported $771 million in total sales and net profit of $175 million;
• In FY 2023, the commission reported $756.7 million in total sales and net profit of $165 million.

And here’s how the interstate outlets have contributed over the years, according to commission data:

• In FY 2019, the Hampton north and south outlets combined for $54.3 million in sales;
• In FY 2020, $48.2 million;
• In FY 2021, $48 million;
• In FY 2022, $50.1 million;
• In FY 2023, $46.7 million.
• In FY 2019, the Hooksett north and south outlets combined for $34.6 million in sales;
• In FY 2020, $32 million;
• In FY 2021, $29.5 million;
• In FY 2022, $32.5 million;
• In FY 2023, $32 million.

As a percentage of revenue, the four highway outlets combined for producing 8.6% of sales statewide in FY 2023.

By comparison, the state’s top-grossing outlet is up the road at the Portsmouth traffic circle. According to the commission, before its extensive makeover was completed in October 2018, its fiscal year 2018 sales amounted to $22.4 million. Sales grew 51% over five years, reaching $33.9 million in FY 2023.

According to the commission, the Hampton outlets arrangement will differ from the current arrangement for the Hooksett outlets.

In Hooksett, the state owns the liquor and wine outlets, while Granite State Hospitality pays rent to the N.H. Department of Transportation (NHDOT) under a ground land lease. According to NHDOT, the contract is set up on a monthly fixed rent and a tier rent based on gross sales and gallons of gas sold.

Originally opened in March 2015, the Hooksetts Welcome Centers are a public-private partnership comprising the liquor commission, Granite State Hospitality, and the NHDOT. Besides the two 20,000 square-foot N.H. Liquor & Wine Outlets, the centers include a 16,000 square-foot interactive visitor center containing a NH General Store, Common Man Roadside eateries food court, including the Hi-Way Diner, a Merrimack County Savings Bank branch, League of New Hampshire Craftsmen store, Irving fuel stations, restrooms and more than 300 parking spaces.

In Hampton, the liquor commission is selling the parcels outright. It will retain ownership of its outlets and the land thereon, along with the highway ramps, in perpetuity. The buyer will own the remainder of the parcel and the future building. The buyer will also be responsible for common area maintenance.

“The New Hampshire Liquor Commission has been working diligently with fellow state agencies, the Town of Hampton, and our consultants to arrive at this important milestone,” said Mollica. “We look forward to this process resulting in the selection of a highly and uniquely qualified partner for this public-private partnership that will deliver a vibrant, first-class, and thoughtful New Hampshire-centric development that will benefit the state, local communities, customers and the traveling public for decades to come.”

According to the commission, sale proceeds would provide substantial financial benefit for it to pay down all bond debt, as well as for the Town of Hampton, which would realize new and significant ongoing property tax revenue from the new privately held portion of the redeveloped areas.

With the new outlets doubling in size, the commission anticipates increased sales that will ultimately far surpass the $54.3 million generated at the Hampton locations in FY 2023.

“The New Hampshire Liquor Commission continuously sets the standard for top-notch customer service, and this project is an exciting step forward in enhancing the experience for visitors and residents alike,” Gov. Chris Sununu said in a statement. “Cheers to even more economic opportunity for the Hampton area.”

On March 15, the commission issued a formal Request for Proposals (RFP) to eight bidders who had been previously qualified through a Request for Qualification (RFQ) process.

One of the requirements of the RFP is that the current outlets remain open during the redevelopment process.

The commission timeline for the project shows a hoped-for Executive Council approval of a contract in September of this year. Town of Hampton approvals will also be necessary. Substantial completion of the northbound welcome center is expected within 12 months after all local approvals are in hand; substantial completion on the southbound side is expected within three months after that.

As for the existing welcome center currently operated by the NHDOT on the northbound side of Interstate 95, a department spokesperson said “there are no plans to change the Seabrook Rest Area/Welcome Center” in light of the changes coming to the liquor/wine outlet just up the road.

These articles are being shared by partners in The Granite State News Collaborative. For more information visit collaborativenh.org.