NH Supreme Court Rules Pandemic Shutdowns Don’t Qualify for Municipal Tax Abatements
| Clearview Realty Ventures, LLC v. City of Laconia; et al. |
| New Hampshire Supreme Court Docket: 2022-0196
Opinion Date: April 18, 2023 Judge: Gordon J. MacDonald Areas of Law: Civil Procedure, Government & Administrative Law, Health Law, Landlord – Tenant, Real Estate & Property Law |
| Plaintiffs Clearview Realty Ventures, LLC, JHM HIX Keene, LLC, VIDHI Hospitality, LLC, NAKSH Hospitality, LLC, 298 Queen City Hotel, LLC, ANSHI Hospitality, LLC, 700 Elm, LLC, Bedford-Carnevale, LLC, and Carnevale Holdings, LLC, owned commercial real estate on which they operated hotels, some of which offered restaurant services along with banquet or function facilities. Nearly all received federal pandemic assistance of at least $275,000 to help with business losses in the pandemic’s first several months. Two, 700 ELM in Manchester and Carnevale Holdings of Bedford, described in state records as real estate developers, each received over $1.1 million in federal assistance.
They contended that the COVID-19 pandemic was a “natural disaster” and that their buildings were “damaged” within the meaning of RSA 76:21, I (Tax Abatements). Plaintiffs sought relief from the New Hampshire municipalities involved: the Cities of Laconia, Keene, and Manchester, and the Town of Bedford. After denial of their applications, they appealed to the superior court in the applicable county. Observing that there were thirteen separate lawsuits pending in six counties, they then filed an assented-to motion for interlocutory transfer without ruling and motion to consolidate to allow the coordinated transfer of the common questions of law to the New Hampshire Supreme Court. In this interlocutory transfer without ruling, the Supreme Court was asked to determine: (1) whether, for purposes of RSA 76:21, the COVID-19 pandemic constituted a “natural disaster”; and (2) if so, whether the buildings owned by the plaintiffs were “damaged” by COVID-19 such that they were “not able to be used for [their] intended use” within the meaning of RSA 76:21, I. The Court answered the second question in the negative. The Court held that hotels damaged by pandemic shutdowns do not qualify for tax abatements because Covid was not a “natural disaster”. |
