PORTSMOUTH — The City of Portsmouth and The Kane Company announced Feb. 12, 2025 that they have reached a groundbreaking agreement that resolves the longstanding McIntyre lawsuits, representing a mutually beneficial outcome. In addition to resolving the lawsuits with no monetary damages for either party, the agreement demonstrates a shared commitment to addressing the housing crisis in Portsmouth, one of the City’s most pressing needs.
Mayor Deaglan McEachern said, “This agreement is a big win for Portsmouth. It settles a long-standing legal battle at no extra cost to taxpayers and advances real solutions to our housing crisis. I’m grateful to our City team, Housing Committee, Planning Board, City Council, and The Kane Company for working together to make this happen. This is a path forward that benefits everyone in our community.”
Michael and John Kane, long-time Seacoast real estate investors and principals of The Kane Company, view this settlement as a continuation of their longstanding relationship with the City and their dedication to supporting its future growth and prosperity.
The resolution of this lawsuit reflects the City’s commitment to settling this complex issue for the benefit of Portsmouth’s residents by amending the City’s Zoning Ordinance and Map to include a new overlay district that incentivizes the development of mixed-use properties and requires the provision of permanent, below-market-rate housing. Through diligent effort and a focus on the community’s needs, the City and The Kane Company have successfully navigated a path forward, transforming a difficult situation into a positive outcome. The Kane Company supports the City’s approach to the resolution of the lawsuit and reaffirms its commitment to developing properties in the City to address the shortfall in housing stock.
Key elements of the agreement include:
- Initial $500,000 funding for the Housing Trust Fund: the Housing Blue Ribbon Committee and the City Council are creating a new Housing Trust Fund to directly support the below-market rate housing goals of the City. The Kane Company and the City will each contribute half of the inaugural $500,000 in funding for this trust to fuel the development of affordable housing in Portsmouth.
- Gift of Land for Affordable Housing: The Kane Company will donate land within the newly adopted Gateway Neighborhood Overlay District (GNOD) to the City for the development of at least 80 permanent, below-market-rate housing units. This development will be co-located within a broader mixed-use development to be proposed for the new GNOD district.
- Rezoning for Mixed-Use Development: The Kane Company and its associates intend to propose development in the recently approved GNOD that will include a substantial number of new housing units, enhance the workability and livability of the area, and support overall economic growth and community well-being.
- Progress toward the City’s Housing Goals: This agreement allows for the creation of a substantial number of new housing units in the new GNOD, in addition to the below market-rate housing units to be developed on the acquired City-owned land.
“This agreement is the result of many hours of hard work by the Mayor, City Council, and staff to benefit Portsmouth,” said Michael Kane. “We have always approached our work with a deep commitment to Portsmouth’s resilience and livability, and we are committed to working together with the City to create a vibrant, sustainable community where people can live, work, and thrive.”
John Kane added, “We’re proud to contribute to Portsmouth’s future in meaningful ways. This agreement is a win-win for the City and its residents, and we fully support the City’s approach to resolving this situation. The City of Portsmouth and The Kane Company are committed to working together to expand the City’s housing stock, support its residents, and build a brighter future for all.”
About The Kane Company
The Kane Company is a leading real estate investment, development, and management company with a longstanding presence in Portsmouth. The company is known for its commitment to quality, fairness, and community engagement, and it continues to play a key role in shaping the City’s real estate landscape.
.png)