The property at 80 Northwest Blvd., which Nongfu Spring purchased in February for $67 million. File photo

NASHUA – The state Department of Business and Economic Affairs is accused of being “asleep at the switch” regarding the purchase of 80 Northwest Blvd. by Chinese beverage giant Nongfu Spring.

The purpose of the BEA is to provide “facilitation services to enterprises seeking to invest in or relocate to New Hampshire.”

Under the direction of Gov. Kelly Ayotte, the state Department of Justice investigated the contentious $67 million transaction and released an 11-page report on Oct. 3.

“The department prepared this report to provide an independent review and assessment of the facts and circumstances related to the purchase of Nashua property by Nongfu Spring,” said Attorney General John Formella. “Our goal in releasing the report is to ensure transparency and provide the public with factual information about state and local involvement in this transaction.”

The report stated that the BEA was the only state agency to have knowledge of the Nongfu transaction before the deal closed in February. During that time, BEA Business Development Manager Michael Bergeron helped facilitate the purchase process which began in March 2024 and ended 10 months later.

“The business development manager continued in this endeavor even after learning of the identity of the potential purchaser and the purchaser’s Chinese ownership in June 2024,” said DOJ officials. “The business development manager did not notify his supervisors of the potential transaction until December 2024 and did not notify his supervisors that the purchaser was Chinese owned until January 2025.”

However, the DOJ maintained that Bergeron’s actions did not result in any wrongdoing.

“The business development manager did not violate any federal or state law, regulation or policy through his actions,” said DOJ officials. “In particular, it should be noted that the BEA business development manager, in the course of meetings he attended, received representations that Nongfu Spring was taking steps to obtain necessary federal approvals.”

The DOJ also determined that Nongfu owner Zhong Shanshan has “close connections” with China’s Communist Party.

According to a new law that took effect on July 1, it is a felony for a company from a “foreign country of concern” to purchase property in New Hampshire. However, the legislation is not retroactive and did not impact the Nongfu transaction.

Therefore, on Oct. 6, Ayotte signed two Executive Orders preventing companies from U.S. adversaries from buying property in the Granite State.

“China, Russia, Iran and other countries like them should not be doing business in the State of New Hampshire, it’s as simple as that,” she said. “We must do everything we can to protect our state from foreign adversaries and it starts with making sure they cannot access sensitive data, do business or purchase property here. Under my administration, New Hampshire will always do our part to keep America safe.”

DOJ officials also reported that the BEA is aware that the state’s prosperous economy attracts a number of foreign companies. However, this has resulted in “escalating public concern.”

In addition, Congresswoman Maggie Goodlander (D-NH) requested a retroactive review of the transaction by the U.S. Treasury and the federal Committee on Foreign Investment in the United States.

“No one in New Hampshire should have to worry or wonder if a land purchase poses a threat to our national security or the safety of our citizens. We need clear and reliable laws on the books that ensure the people of New Hampshire have full faith and confidence that the public servants who work for them have the tools they need to keep New Hampshire safe from foreign adversaries,” she said. “That’s why I’m working to build a bipartisan coalition of federal, state and local partners to tackle these challenges and close the glaring gaps in our laws. The Treasury Department and Committee on Foreign Investment in the United States are mission-critical partners in this critical effort.”

DOJ officials also said a CFIUS analysis should have been done before the transaction was completed.

Nongfu’s legal counsel stated that the CFIUS approved the transaction in November 2024; however, the DOJ was unable to confirm that approval.

After reviewing the DOJ’s report, David Wheeler, Joseph Kenney and John Stephen, members of the state Executive Council, said the BEA must revamp its communication policies.

“We find there has been an appalling lack of communication with the public and a troubling absence of community engagement or public hearings related to this sale,” the councilors said in a statement. “Changes must be made to ensure the people of New Hampshire are protected and have a voice in transactions that may impact major community water utilities. The governor and the Executive Council must be kept informed about the status of such transactions in our state. These transactions must be vetted with the utmost care and transparency.”

Going forward, the three councilors recommended that the BEA submit quarterly reports to the Executive Council providing information about foreign companies that are working with the BEA.

Wheeler, Kenney and Stephen also said that for future foreign real estate transactions, the BEA must confirm whether or not approval has been granted by the U.S. Treasury or the CFIUS.

“This confirmation should not rely solely on the company’s word,” they said. “Independent verification by BEA would have added much-needed transparency to the process.”

The councilors also recommended including the state Department of Environmental Services in any real estate transaction that involves a source of drinking water.

The BEA could not be reached for comment.