3 Executive Councilors Question BEA Head On Nashua Land Sale To Chinese Businessman

By PAULA TRACY, InDepthNH.org, InDepth NH

CONCORD, NH — The purchase of an industrial property in Nashua by a prominent communist Chinese businessman is prompting an investigation into involvement by the state's Commission of Business and Economic Affairs and one requested by Gov. Kelly Ayotte.

Three Executive Councilors wrote to Taylor Caswell, commissioner of the BEA, on Aug. 14 to ask specifically if a review of the transaction was requested to the Committee on Foreign Investment in the United States. The Executive Councilors signing the letter are Joe Kenney, R-Wakefield, John Stephen, R-Manchester and David Wheeler, R-Milford. The letter asked about the BEA's involvement in the state's role relative to the purchase and concluded with a request for a response by the end of the next day.

Kenney said Sunday night that the BEA commissioner reached out to them and pushed it off to the "AG's office...now she sends out a letter to the AG to review the Nashua transaction."

Congresswoman Maggie Goodlander, D-NH, has also written a letter Aug. 5 to the Secretary of the Treasury, Scott Bessent, expressing concern about the transaction and because he is the chair of the Committee on Foreign Investment in the United States "to conduct a thorough and complete retroactive review of the transaction pursuant to the authorities provided to CFIUS by Congress, including, under the Foreign Investment Risk Review Modernization Act of 2018."

On January 31, an industrial park property at 80 Northwest Boulevard in Nashua was purchased by a subsidiary for the largest bottled water producer in China, Nongfu Spring. NF North America is owned by that communist nation's most wealthy individual, Zhong Shanshan, according to a Bloomberg profile.

The purchase was for $67 million when the property had been assessed by the city for $15 million and was unoccupied.

It was the understanding that the company wants to buy water from Pennichuck Water Company which provides drinking water to a large area of southeastern New Hampshire.

But the property also is not far from sensitive national security facilities in the Nashua area that has some, including the governor, concerned.

Last week, Mayor James Donchess, a Democrat, charged that the state Department of Business and Economic Affairs was the reason that the company learned about and purchased the property.

A majority of the state's Executive Councilors want to know if that is true and the particulars.

"Dear Commissioner Caswell,

Our constituents have expressed concerns about the transparency and oversight of the Nongfu Spring purchase in Nashua, particularly regarding who was informed, when, and the extent of the Department of Business and Economic Affairs’ (BEA) involvement. To address these concerns, we respectfully request detailed responses to the following questions no later than the close of business on Friday, August 15, 2025.

1. BEA Involvement and Recruitment
• Did the BEA actively recruit this company to relocate or establish operations in New Hampshire? If so, when did these efforts begin, and who initiated contact?

• Was the BEA notified or consulted about the acquisition prior to its public announcement? If so, When and by whom?

• Who within the state government, including the BEA, was aware of the company’s interest in the Nashua site, and at what point in the process?

2. Oversight and Due Diligence
• Did the state conduct a foreign ownership risk assessment prior to the transaction?

• Was the deal referred to the Committee on Foreign Investment in the United States (CFIUS) or any other federal agency for a national security review? If so, when was this referral made?

• Has this company or its affiliates previously operated in New Hampshire or received state assistance (e.g., grants, tax incentives)? If yes, what is their track record, and when was the BEA informed of their prior activities?

3. Economic and Workforce Implications

• What commitments, if any, has the company made regarding job retention or creation in Nashua, and when were these commitments communicated to the BEA?

• Are there written agreements ensuring workforce retention, and if so, when were they established?

• Are tax incentives, grants, or other state resources being provided to the company? If so, when were these incentives approved, and by whom?

4. Technology and Security

• Does the Nashua facility produce or handle sensitive technologies or products with potential defense applications? If so, when was the BEA made aware of this?

• Has the BEA coordinated with federal agencies to address cybersecurity or intellectual property concerns related to this acquisition? If yes, when did this coordination begin?

5. Community and Long-Term Impacts

• When did the BEA first learn of the company’s long-term plans for operating in Nashua?

• What steps has the BEA taken to assess the impact of this acquisition on local infrastructure and businesses, and when were these assessments conducted?

• Was there a process for public input or community engagement, and if so, when?

6. Accountability and Transparency

• What mechanisms are in place to ensure the company meets its obligations, and when were these mechanisms established?

• Are there clawback provisions for any incentives if the company fails to meet job or investment promises? If so, when were these provisions drafted?

Your timely response is appreciated and we look forward to receiving further updates at the next Governor and Executive Council meeting on August 27, 2025.

The letter is signed by the three councilors who are opposing the governor's renomination of Caswell.

Gov. Ayotte spoke to reporters last Wednesday about the matter and said that the right questions are being asked and that she was concerned about national safety and the "above market" sale and why the company wants to locate a facility in New Hampshire.

Caswell, in an article for the NH Business Review in June, said in a statement that "BEA frequently receives inquiries from businesses exploring opportunities to locate, expand or secure financing in New Hampshire...these inquiries often come through third party intermediaries...such as consultants or site selectors, seeking general information about available commercial properties, regulatory requirements, tax structures and other business considerations. This was the case with the recent project in Nashua. While the BEA has since become aware of the projects' Chinese ownership, no substantive assistance has been requested or provided by the agency," Caswell said.

The issue of concern about hostile foreign ownership of property was a subject of Senate Bill 162 which ended up passing in the legislative budget process. It dealt specifically with the sales of public lands in proximity to existing national security properties.

Responding to the Executive Councilor's letter, Caswell wrote last Friday that because the governor has asked for an inquiry into the facts surrounding the involvement of state and local entities of the property he is deferring to the Attorney General regarding the issues.

"I am confident that review will include issues you have raised, and I join you in looking forward to getting this matter fully reviewed," Caswell wrote.

This article first appeared on InDepthNH.org and is republished here under a Creative Commons license.