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Issue Assessment - January 19, 2007
ADIRONDACK CLUB AND RESORT
Town of Tupper Lake
Description:
An investment/development firm headed by Michael D. Foxman, entitled Preserve Associates, LLC, together with an unclear number of subsidiaries, plans to develop 773 principle buildings affording 753 new residential units on property fronting on Tupper Lake and Simon Pond, overlooking the nearby Village of Tupper Lake. The proposed $329,469,404 development includes upgrading of the Big Tupper Ski area and a nearby marina, as well as new amenities including a sportsmen/shooting complex, an inn for the traveling public and recreational facilities such as cross country ski trails, trail heads and canoe launches.
Approximately twelve miles of new, mostly public roads will be constructed throughout the property, while two new waste water treatment plants will service most of the development. Water and electricity will be provided by the Village via distribution systems constructed by the developer. Funding for the infrastructure is proposed to be financed through bonds issued by the Franklin County Industrial Development Agency. Also, a payment-in-lieu-of-taxes (PILOT) agreement will be sought with local taxing jurisdictions, while a Home Owners Association will be formed to generate revenue and otherwise oversee the development as it comes into being.
The development will involve 906 acres of predominantly forested lands within a total 6,261 acre tract. The undeveloped lands will be retained under a conservation umbrella involving distinct open space, recreational and forestry management plans restricting residential development and incorporating existing trails/logging roads where possible.
Vehicular access to the development will be via a new public road and the existing Country Club Drive, both from NYS Route 30. Access also will be provided from the Lake Simond Road via two new public roads connecting to a mostly private new road, and via extension of the Lake Simond Road as a private road
The residential components and major amenities, to be built in phases over a ten to twelve year period, are detailed as follows:
Phase Description
I McDonalds Marina—New marina and retail building to replace existing structures on NYS Route 30 and Tupper Lake
I West Slopeside—75 townhouses and detached single family dwellings, maximum of 169 residential units
I Ski Mountain Base Area and Lodge—New ski lodge (with restaurant) and accessory buildings to replace existing complex in support of program elements including, ice rink, supporting shops/kiosks, artist display and education spaces, ski learning center, spa services, recreational center and informal bandstand/amphitheater
I Big Tupper Ski Area—Improved snowmaking, trail lighting, renovation or replacement of existing chairlifts and construction of new lift, and construction of new trails to service ski in/out homes
I Outdoor Recreational Shooting Course—Sporting Clays Course, Shooting School and Lodge/Cabin
I-II Lake Simond View—44 detached single family dwellings
I-IV Great Camp Lots—twenty-four residential building lots averaging 90 acres in size, with buildings restricted to a development envelop; buildings to include main house, guest house 2 garages, wood sheds and a lean-to; lot area outside the development envelop will be subject to open space, recreation, and forestry management plans
II West Face Expansion—66 townhouses and detached single family dwellings, maximum of 126 residential units
II East Ridge—36 detached single family dwellings
II West Face Inn—60 rooms or transient units, open to the public
III East Village—seventeen townhouse buildings, maximum of 68 residential units
III Cranberry Village—thirty-one townhouse buildings, maximum of 124 residential units
IV Sugarloaf East—eight townhouse buildings, maximum of 32 residential units
IV Sugarloaf North—twenty-one townhouses and detached single family dwellings, maximum of 33 residential units
IV Tupper Lake View North—25 detached single family dwellings
IV Tupper Lake View South—18 detached single family dwellings
Governmental Reviews:
The overall development must be approved by both the Town of Tupper Lake and the Adirondack Park Agency, while the Franklin County Industrial Development Agency must approve the proposed infrastructure funding arrangements. Other specific components such as the on-site waste water treatment facilities may require separate approvals from the NYS Departments of Health and Environmental Conservation.
The Town of Tupper Lake thus far has allowed the project to advance as a "Planned Development" under the town’s zoning provisions. The town obtained the services of a professional consulting firm, the Hudson Group, to help a joint Village-Town Planning Board with its review, which currently is ongoing. There is no information regarding if or when a permit for the project will be issued by the town, and the project’s scope and complexity appear to be dividing local officials according to a Plattsburgh Press Republican article of January 9, 2007. "Some maintain the APA review will sort out the details, while others want to understand repercussions before adding millions in property value and infrastructure to Tupper Lake," said the story.
The Franklin County Industrial Development Agency has yet to initiate its review of funding arrangements, although reportedly that review will take several months and will not commence until after the Park Agency’s adjudicatory phase, according to IDA Executive Director Brad Jackson. Notwithstanding that review, Jackson surmised in a comment letter to the Agency that "the intent of the project is to reactivate the Big Tupper Ski venue at a scale sufficient to offer a return on investment," concluding that "the scale of the project is considerably appropriate for the needs of the Adirondack Park and Franklin County."
The Park Agency’s review thus is apparently the furthest along. The Agency determined on December 20, 2006, that the developer’s application is "complete." As a result, specific procedural steps and time frames for the Agency’s review now prevail, including the Agency having to decide by February 19, 2007, whether to approve the project or direct that a formal (adjudicatory) public hearing—akin to an environmental court proceeding in front of an administrative judge—will be required before a final decision can be made. A permit for a project cannot be withheld without a formal public hearing, so following a hearing the Agency may either approve or disapprove a project, or approve it subject to conditions with or without the developer’s concurrence.
Specific legal criteria govern decisions by the Park Agency whether to convene formal public hearings on projects. These criteria are set forth in the Agency’s Rules and Regulations as follows:
(l) the size and/or complexity of the project, whether measured by cost, area, effect upon municipalities, or uniqueness of resources likely to be affected;
(2) the degree of public interest in the project, as evidenced by communication from the general public, governmental officials or private organizations;
(3) the presence of significant issues relating to the criteria for approval of the project;
(4) the possibility that the project can only be approved if major modifications are made or substantial conditions are imposed;
(5) the possibility that information presented at a public hearing would be of assistance to the agency in its review;
(6) the extent of public involvement achieved by other means;
(7) whether an environmental impact statement will be prepared pursuant to the State Environmental Quality Review Act; and
(8) the statutory finding required by the Adirondack Park Agency Act in the case of State agency projects.
As criteria (2) and (6) above suggest, comments received by the Agency on a project, including whether or not a formal public hearing should be held, are important factors in the Agency’s reaching its final determination. However, if the Agency decides to convene a formal public hearing, then any comments submitted to it—by parties who are not participating in the hearing—after that decision, cannot be considered subsequently by the Agency.
Formal public hearings by the Agency occur in front of an assigned hearing officer and involve only those parties admitted to the proceeding by the hearing officer. Official parties (such as the developer, Agency staff, and adjoining property owners) present sworn testimony subject to cross-examination by all the other parties. Any organization or interested individual may attend a formal hearing, but may not participate in it unless they successfully petition to be admitted as an official party. Such hearings can last several months or may even stretch to more than a year, particularly when a project is unusually large or complex. A complete written record of all hearing procedures, evidence, testimony, and cross-examination is compiled and serves as the sole information on which the Agency can base its final decision. That decision must be made within sixty days of the Agency’s receiving the complete hearing record.
Position of Other Organizations:
All individuals and organizations have until January 19, 2007, to submit comments to the Adirondack Park Agency concerning the Adirondack Club and Resort. Thus far, the Agency has received many hundreds of letters from individuals and organizations since plans for the project first were announced. Abundant local and regional media attention also have been paid. To date, organizations have been generally guarded in their assessment of the project, most calling for full disclosure of the developer’s plans and interests, perhaps in recognition of the potential for significant economic, social, and environmental impacts that could stem from such a development.
The Tupper Lake Chamber of Commerce early on cited the favorable impacts the project could have on the tourism economy and the community’s tax base, in particular because of the planned reopening of the Big Tupper Ski Slope associated with the project, a primary goal of the community’s revitalization strategy. The Chamber also expressed its faith that "the Adirondack Park Agency will represent the integrity of our natural environment by not compromising the natural resources that make our community a desirable place to live, work, recreate and visit."
Another local group, the Committee to Preserve and Advance Tupper Lake, points to recent projects promising to restore some of the historic vitality and enthusiasm of Tupper Lake. It includes the Adirondack Club and Resort as one such venture on its list, also including the opening of the Natural History Museum of the Adirondacks, revitalization of the business district, golf course improvements, "Next Stop Tupper Lake", movie theater, boat launch, arts council, and observatory. The group urges residents to unite with visitors to support the revitalization of the community "as a better place to live, raise families, appreciate the Adirondack setting, and enjoy outdoor sports activities and cultural events."
Environmental groups appear especially concerned about not only specific ecological issues, but also the size and scale of the project and the planning concepts underlying the proposed "Great Camp Lots." They argued loudly for the APA to find the developer’s application incomplete a third time, up until the point that the Agency determined it complete. Then following that decision, on January 9, 2007, a coalition of the groups, including the Adirondack Council, the Association for the Protection the Adirondacks, the Residents Committee to Protect the Adirondacks, the Adirondack Mountain Club, Audubon New York, and the Citizens Campaign for the Environment, held a joint press conference in Albany, NY, to call for a slowing of the approval process and the convening of a formal public hearing on the project.
Concurrently, a group of Tupper Lake residents joined with the environmental groups to speak against the project. In fact, on the day preceding the press conference, January 8, 2007, the Tupper Lake residents together with two of the organizations filed suit in Franklin County against the developer and the town, alleging that the Tupper Lake planning process is flawed and that the proposed PILOT agreement is illegal. The group contends that the decision treating the project as a "Planned Development" under local zoning provisions should have been subject to a full environmental impact review before the decision was made.
It would appear that the environmental community concerns about the project are based on the proposed development of lands classified by the Park Agency as Resource Management, A sampling of environmental group opinions include the following:
The Adirondack Council claims that the development "would destroy…sensitive forest and wildlife habitat; drive local residents out of the area due to property tax increases and direct all new development away from the…Village of Tupper Lake."
The Residents Committee to Protect the Adirondacks maintains that the "application contains numerous contradictions and glaring omissions of important information necessary to fully evaluate the impacts of the project."
The Association for the Protection of the Adirondacks believes the project "will require massive engineering on undeveloped, relatively wild lands, cause extensive soil erosion, resultant stream siltation and imposes two community sewage treatment plants that will release tens of thousands of gallons of treated effluent per day into and degrading the water quality of the Tupper Lake Marsh, Lake Simond and the Raquette River and Big Tupper Lake itself."
The Adirondack Mountain Club argues that the APA failed to ask the developer about the impact the resort development would have on state Forest Preserve lands. Citing the developer’s estimate of an increase of nearly 301,000 visitor user days resulting from the project, the club concludes that, if successful, the "resort will undoubtedly increase population, thereby increasing visitation and use of nearby Forest Preserve units."
Questions about the Overall Scope and Impact of the Project:
Given the project’s scope and potential, it is not surprising that specific questions about it are themselves broad and complex, with many involving legal considerations. Some examples of questions posed by the environmental groups, residents, municipal leaders, and ANCA staff include the following:
- Does municipal law permit industrial development agencies to fund residential subdivision?
- What is the economic viability of the project, and what are local government’s vulnerabilities if it is not successful?
- Are all components of the project equally important in terms of its economic viability, or can one or more be modified to mitigate potential negative impacts?
- What are the growth inducing impacts of the project?
- What will be the impact on local property tax assessments as a result of the relatively rapid increase in property values likely to occur over the entire build-out period of the project?
- What will be the impact (if any) on the provision of public services as a result of the relatively rapid population growth of Tupper Lake likely to occur over the entire build-out period of the project, particularly in terms of the following?
- Franklin County Solid Waste Disposal Authority (e.g., increased staffing, travel and equipment needs for both the Lake Clear Transfer Station and County Waste Disposal site).
- Tupper Lake Town and Village police, fire and rescue needs (e.g., staffing, travel and equipment to service the entire developed area of Tupper and adjoining town service areas).
- Infrastructure maintenance needs (e.g., roads, water and sewer lines, electric facilities).
- What will be the visual impact of those structures to be located high on the hillside above Tupper Lake?
- What noise impacts will result from the proposed shooting school?
- How will the existing marina be changed physically and operationally to accommodate the boating interests of resort landowners?
- Will sufficient, affordable housing be available in the area to support the developer’s staffing needs?
- What assurances are there that the Ski Slope and other project amenities will be available for use by local residents during the life of the project?
- Will the downtown character of Tupper Lake be affected? Will the project give rise to overwhelming traffic and sprawl impacts?
- How will road and infrastructure construction proceed on steep slopes and in areas having shallow soils to avoid soil erosion, stream siltation, and other water quality impacts?
- How will increased storm water runoff from the project be managed before and after construction?
- How do the APA requirements regarding "small clusters" and "substantial acreages" for developing back-country (Resource Management) lands apply to this project?
- What is the complete list of subsidiaries assisting Preserve Associates, LLC, with the project and what are their respective responsibilities?
- What are the governing rules that will apply to the proposed Homeowners’ Association?
It must be noted that the complexity of the questions makes it difficult for stakeholders to understand the ramifications of the project. The challenge for community members is to discern what questions are legitimate to the economic and environmental future of the community, versus those that are being used as propaganda either for or against the project.
Public Meetings—Saranac Lake and Tupper Lake, New York:
Recognizing the considerable public interest in the project, the Adirondack Park Agency devoted a full afternoon and evening on January 10, 2007, to hearing more about the project from the developer’s consultants, the LA Group, and to listening to public comments about the project. More than 400 people attended the public evening session in Tupper Lake, where close to eighty people registered to provide public commentary. Based on the audience’s reaction, roughly two-thirds of those in attendance appeared to support the project, while the rest had serious reservations or were opposed. The entire public comment period was transcribed to assist the Agency’s subsequent review.
Some at the public session spoke for the project in terms of its economic and cultural importance for the community, particularly with respect to the proposed reopening of the Big Tupper Ski facility. Some called for the Agency to grant a permit now. Others rejected the project, concerned about its large scale and environmental impact, and the lack of certainty about consequences if the project were not successful. Virtually all who expressed concern called for an adjudicatory public hearing to fully explore the issues before the Agency reaches any final decision. Commentators also spoke to how the project has divided the community, leaving no "middle ground." And some recommended that an adjudicatory public hearing could help find that middle ground. As Jim Frenette, a Tupper Lake resident and former APA Commissioner, stated at the meeting, "The Devil is in the details." He noted, "We don’t know enough about the details and the impact or lack of impact."
ANCA Staff Review:
Recognizing the magnitude of the project and the increasingly heated debate it has engendered, the potential for the Adirondack Club and Resort to significantly affect the economic viability and quality of life in the Tupper Lake community perhaps goes without saying. Likewise, ANCA always has worked to strengthen the economy and quality of life through informed, open debate and advocacy on issues critical to the region. From this project’s early stages, ANCA has recognized the need for community members and municipal leaders to have detailed information on the scope of the project.
Unfortunately, the breadth of information and level of detail needed for truly informed decision making about the potential of the project to sustain community life still seems lacking in the minds of many observers and reviewers, regardless of the complete status of the application before the Adirondack Park Agency. Conversely, many supporters of the project recognize the economic and community value of it and do not have the same level of concern. Ongoing coordination and involvement in the project by all decision-makers seems eminently needed, especially regarding the economic viability of the development proposal. There are three different reviews that are part of the project by the Town of Tupper Lake, the Adirondack Park Agency and the Franklin County IDA. It is unclear the extent to which the Franklin IDA review of the PILOT and the Agency review may overlap regarding project financing, if at all. If a PILOT is requested, action by the Town Board, school board and county legislators will be required. The scale of the project has left many wondering just when and what project might ultimately be approved, and what impacts may result.
Within the framework of issues and opportunities, the following points are important considerations about the project:
(1) The project has, and most likely will continue to evolve significantly as the governmental reviews of it go forward;
(2) Such evolution, while not an uncommon occurrence in the life of a development, always will evoke a level of uncertainty for decision-makers beyond which some may choose not to go; and
(3) The level of risk acceptable to decision-makers can be minimized if truly informed and open debate is allowed to occur unimpeded by deliberate dissemination of misinformation and ideological diatribe.
ANCA Board Discussion:
ANCA’s Board of Directors can actively encourage all decision-makers in this matter to conduct the most thorough reviews possible, affording all potentially affected parties equal opportunity to be heard, and to have their views considered fully and fairly irrespective of position or power within either the community or the region. In that way, the character of the community to which its residents aspire might be better defined, and the resources necessary for achieving that vision better known.
The governmental review of the Adirondack Club and Resort project must continue with all the transparency and inclusiveness our constitutional safeguards allow. A formal public hearing may be an appropriate means to ensure the complete, documented assessment of potential economic, environmental and community impacts of a project such as the Adirondack Club and Resort. While the questions surrounding the project are considerable, it must be noted that the Park Agency staff are in the position and have the expertise to fully explore many of them. Yet, other questions may be addressed best by other decision makers. The biggest challenge is ensuring that the details of the project are made clear to the community members and town leaders. ANCA’s primary concern should be that the answers are made clear to interested parties.
That said, ANCA’s Board of Directors should stress that ANCA is highly mindful of the positive economic effect the Adirondack Club and Resort project could have on Tupper Lake and the Central Adirondack region. This emphasis would reflect a belief that culmination of governmental reviews of the project will reach the same positive conclusion. Therefore, the Board should encourage the Adirondack Park Agency to continue its thorough review of the project, reaching its final decision in the most fair, equitable and timely manner possible.
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