John Boisvert, CEO of Pennechuk Water Works, assured the public and the Board of Aldermen that the company has not been sold and is not for sale. Courtesy photo/NashuaTV

NASHUA – Before a packed Aldermanic Chamber, Mayor James Donchess reiterated that Pennichuck Water Works is not for sale despite statements made by state officials suggesting the contrary.

“You’ve been told a lot of things that have not been true,” he said during the Aug. 12 Board of Aldermen meeting.

In February, Chinese beverage giant Nongfu Spring purchased 80 Northwest Blvd. for $67 million. The property was previously owned by Stag Industrial, not Pennichuck.

“This company came to Nashua as part of a state economic initiative,” Donchess said of Nongfu. “This was driven by Concord.”

Although the city has has owned Pennichuck since 2012, Donchess said the company could not be sold without approval from the state Public Utilities Commission. He was also confident that under the current board, such a proposal would never make it out of Nashua.

“There’s not a single alderman in this chamber that would vote for that,” he said.

Alderman-at-Large Melbourne Moran quelled rumors that Nongfu would poison the city’s water supply. He said doing so would be considered an “act of war.”

“We would crush them in a war like that,” said Moran, adding that China is an enemy of the U.S.

He also said Chinese companies must be put under additional scrutiny if they are looking to do business in New Hampshire.

“We should demand that the state do a little more extra vetting,” said Moran.

He asked if Gov. Kelly Ayotte could issue an executive order to prevent economic development at 80 Northwest Blvd.

Corporation Counsel Steven Bolton explained what would happen if Ayotte were to issue such an order.

“If the governor tried to do that, there would be a lawsuit against the state and the Office of the Governor,” he said. “Attorney General (John) Formella would have his hands full.”

Alderman-at-Large Benjamin Clemons agreed that the matter rests in the hands of the legislature.

“Bring this conversation to Concord,” he said.

Clemons also reminded his colleagues that New Hampshire operates under Dillon’s Rule. This means that municipalities can “engage in an activity only if it is specifically sanctioned by the state government,” according to the New Hampshire Municipal Association.

State Rep. Liz Barbour (R-Hollis) urged the aldermen to establish a committee to monitor similar real estate transactions that may arise going forward.

“By being proactive, Nashua will ensure that when the next purchase comes along, we’re not scrambling to understand it after the fact,” she said.

Ward 3 Alderwoman Patricia Klee said the statements from state officials were only made to bolster their political platforms.

“This was a political ploy,” she said. “They were trying to scare all of you.”

Klee also said state officials went directly to the press rather than consulting with the mayor or with Pennichuck CEO John Boisvert, who assured everyone that there are no “secret agreements.”

Boisvert said he met with Nongfu in November and December of last year to discuss the possibility of Pennichuck supplying a water bottling facility. During those meetings, Nogfu indicated that the facility would need up to 2 million gallons of water per day. Although Pennichuck could fulfill that need, Nongfu would need to cover the cost of upgrading a pumping station and a series of water mains. At that point, the discussion ended.

“We have not heard anything since December,” said Boisvert.

Originally from China, Lily Tang Williams, a Republican Congressional candidate for District 2, said the Chinese government is focused on becoming the top “global power” by 2049.

“We’ve got a serious China problem,” she said. “They’ve threatened me, they want to shut me down.”

Aaron Penkacik of Hollis said there would be a national security risk by allowing a Chinese company to do business in New Hampshire. He also said Nongfu was not reviewed by any federal agencies.

“This whole transaction is a violation of federal law,” he said.

Vernon Hickey, also of Hollis, said the land transaction is part of China’s “long-term game.”

“The Chinese government, they’re not our friends,” he said. “This project belongs in the dust bin.”