HANOVER — The Zoning Board of Adjustment unanimously denied the Hanover Consumer Cooperative Society’s request to convert its Lyme Road market into a commercial kitchen space to make prepared foods for its other locations.

The Board denied the variance on July 18 “without prejudice,” meaning that the Co-op could submit another application for the same site, said Bruce Simpson, a Hanover town planner.

“It’s not telling them what they should come back with, except that it’s got to be different than they submitted this time,” Simpson said in a phone interview. The ZBA “didn’t really tip their hand as to what they would consider acceptable.”

The Co-op had requested a variance for the project because the business district that the Lyme Road Co-op Food Store is located in does not allow for “light manufacturing,” Simpson said. Businesses allowed in that district include banks, offices, publishing, restaurants, warehouses and retail sales.

The Co-op’s Lyme Road store has been in operation since the 1990s, and Co-op spokesman Allan Reetz previously told the Valley News that the location would need to make up around $500,000 to cover its operating expenses.

Reetz said the Co-op would continue to explore its options for the site.

“We knew going in that we might get turned down, but also knew it is important to explore every avenue,” Reetz wrote in an email, adding that the hearing was useful because the Co-op learned more about the ZBA’s opinions about plans for the site.

The board’s decision came following a public hearing held the week prior. Residents who live near the market close to Reservoir Road had spoken out forcefully against the Co-op’s proposal. Nearly 100 people wrote or signed onto letters in opposition.

“In summary, this property is currently zoned in a way that allows it to serve our community as an open-door retail business and community gathering space,” according to a letter more than 80 residents signed. “A closed-door kitchen at this location has multiple negative effects, such as loss of a valued community space and loss of services for essential workers.”

They added that if the variance was granted, “then the option of another similar community-serving business opening in its place would be permanently eliminated.”

In its variance request, Co-op General Manager Amanda Charland said the business has “incurred losses exceeding $2.6 million,” which amount to an “unnecessary hardship.”

The Co-op also argued that the store’s location does not have enough traffic or population to support the store.

The board disagreed with the Co-op’s assertion.

“[T]his is an assertion for which it presented no evidence, other than its own financial experience with the site,” the board wrote, according to a copy of its written decision.

“The Board finds just as plausible the suggestions of some of the opponents that the Co-op’s financial experience was attributable to its specific business model and practices, rather than to any shortcomings of the site,” the ZBA wrote. “Testimony from residents of Lyme indicating frequent use of the Market tend to suggest that the Co-op’s argument may be based on underestimates of potential customer base.”

In its application, the Co-op said that its request met another of the criteria for the variance — “the spirit of the ordinance is observed” — because “there would be no significant increase in noise, traffic, or other disruptions to the surrounding area.” It added that there would likely be less traffic and noise, as the commercial kitchen would be a food prep site not open to the public.

The ZBA also disagreed with that assertion.

“Consistent with that intent is the testimony of many of the opponents that the current Co-op Market serves as a community hub, point of contact and food spot for residents, children from nearby schools, and employees of area businesses including the nearby police and fire departments,” the Board wrote.

The board noted that some of the testimony “was offered to oppose the closing of the current store (a matter which the ZBA has no authority over).”

Still, the board found those comments “relevant to the ‘spirit of the Ordinance’ criterion, in that the conversion of a community hub and food spot to a use from which the general public is entirely excluded is inconsistent with the intent of the ‘B’ district for businesses which serve the surrounding neighborhood.”

Liz Sauchelli can be reached at esauchelli@vnews.com or 603-727-3221.