Folks,
You got this right! I will add just a few more details. In Gilford there was no due process. In fact homeowners were never even notified. In some cases they didn't find out until years later when they went to build or sell. In addition it now appears it was a bit 'selective'. Some folks in the know were able to protect their rights and others were bit. The whole process never passed the smell test....if you know what I mean.
The real kicker is that the town (via the map makers) paid no attention to if a lot was buildable or not. So 3/4 acre and 1/2 acre lots were all merged together. These could certainly support a septic and well. The DES has told me that on the state level they do not merge and will recognize deeded lots regardless of what the town says. Now if you have built a McMansion across the lot line then in effect you have done a Voluntary Merge (RSA 674:39;a).
This is a taking and is unconstitutional. I have not heard of the method that they used in Swissvale. It sounds like a good method. If someone wanted the lot they had to PAY for it. In Gilford you have older established neighborhoods with vacant lots dotted around glued to house lots. Great for the abutters bad for the property owner. They have to pay taxes on it but can't do anything with it.
Hopefully Gilford Voters will see the light and end this practice.