Tupper developer eyes permit decision day

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APA AGENDA

The Adirondack Park Agency will begin its regularly scheduled monthly meeting at its Ray Brook headquarters at 1:30 p.m. Wednesday.

It continues Thursday and Friday.

The agenda is focused on the Adirondack Club and Resort project, with deliberation scheduled for Friday.

Wednesday, the full agency meets at 1:30 p.m. for remarks from Chairwoman Leilani Ulrich and Executive Director Terri Martino.

At 2 p.m., APA lead counsel John Banta will address a motion filed by Adirondack Wild to reopen adjudicatory hearings, alleging gaps in the development proposal.

At 2:15 p.m., newly hired staff economist Dan Kelleher will review financial and economic impacts of the proposed resort.

The board will hold a roundtable discussion from 3:30 to 4:30 p.m. and then discuss permit structures and project management, concluding at 5:30 p.m.

Discussion resumes Thursday at 9 a.m., with review of draft permit conditions taking up much of the day's work, ending at 5 p.m.

On Friday, APA begins discussion at 9:15 a.m., looking toward final determination.

The meetings will be webcast live at www.apa.ny.gov.

The public is invited to view the webcast live in Tupper Lake at The Wild Center. RSVP Sally Gross at 359-7800, Ext. 116.

For access to the January materials, go to: apa.ny.gov/Mailing /2012/01/index.htm.

Those planning to attend the January meeting at Ray Brook headquarters should RSVP to Deborah Lester at 891-4050 by Tuesday.

Related Photos

Adirondack Club and Resort developers (from left), Tom Lawson and wife, Susan, and Michael Foxman listen during APA review of their proposed project planned for Tupper Lake at a 2011 meeting. P-R File Photo

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January 15, 2012

APA expected to decide on resort permit Friday

KIM SMITH DEDAM Press-Republican The Press Republican Sun Jan 15, 2012, 02:28 AM EST

RAY BROOK — After nearly eight years, developers of a luxury resort in Tupper Lake anticipate a permit decision on Friday.

The Adirondack Park Agency will spend most of the January session, much as it did the past two months, reviewing adjudication testimony on issues raised when commissioners sent the project to adjudication in Feb. 2007.

Nuts-and-bolts debate will likely turn on adjustments to 128 conditions proposed for permit approval.

Michael Foxman is lead developer of the proposed 706-unit Adirondack Club and Resort.

He said the final approvals of where and how to build would come ultimately through the Joint Town and Village of Tupper Lake Planning Board.

But that board cannot do anything if the APA denies a permit first.

"The Planning Board waits to see what the APA does, because it doesn't matter what the Planning Board says if the APA says no," Foxman said in an interview.

He anticipated the project will be approved.

NEEDS DEC APPROVAL

But two further steps hinge on APA's decision.

The first would procure approval from the Department of Environmental Conservation and the Department of Health for water-quality-protection infrastructure.

"We've still got to through the DEC process, which is mostly what I would call ministerial, to approve wastewater treatment and storm-water management design," Foxman said.

"I expect no difficulty whatsoever with it. There is a potential for hearings with DEC, but I think the chance is slim to none."

The second step would structure financing for shared municipal growth through the Franklin County Industrial Development Agency.

It is the IDA process that people have questioned most, Foxman said.

APA commissioners were advised by lead counsel John Banta last month that their role is to focus on environmental impacts and not an economic analysis, which is to be done by the IDA.

IDA BONDS

In the first three years, Resort Phase I infrastructure is projected to cost $15.4 million, of which $8.6 million are shared costs proposed with municipalities.

Funding for Phase I would come in part through $10.3 million in IDA bonds based on projected sales of 83 units, including large lots and great camps, totaling $91 million.

Bond amounts are expected to be $12.3 million for Phase II; $8 million for Phase III; and $5.3 million for Phase IV, according to hearing documents.

"There are two parts to IDA proceedings, which involves property taxes. If there is financing for infrastructure and bonds are issued, then a portion of the PILOT payment-agreement (in lieu of taxes) could go to a payment on the carry of the bonds," Foxman said.

"The Joint Tupper Lake Planning Board is an important part of the IDA process. Negotiation will occur with the town, county and schools after we determine what we're going to build and how we're going to finance it."

GAPS IN PLANNING?

The end goal is to move in step with the market, building in phases driven by property sales.

"Put everything together and what it boils down to is that we can move as quickly as the law and the markets permit. If the environmental preservation groups appeal an APA decision, that will delay the project. If they don't appeal, we will be able to move more quickly."

Adirondack Wild, one of four advocacy groups with party status, motioned to reopen adjudication hearings.

They say developers left gaps in planning.

In a letter sent on Dec. 30 to APA Chairwoman Leilani Ulrich, Adirondack Wild Adviser Robert C. Glennon and organization founders David Gibson and Dan Plumley said APA "must either deny the project without prejudice (and obtain) a satisfactorily supplemental application or reopen the hearing to gain the evidence now so clearly lacking."

Adirondack Wild believes impact on wildlife habitat needs further review along with three "highly significant" issues. They contend that DEC has to resolve private use of the state boat launch; that APA has to explore underground power access along a legal road right-of-way; and APA needs "credible" property sales and tax projections to make a solid decision.

'MOVING FORWARD'

Parties can appeal any decision APA makes this week.

"It would be a lawsuit," he said. "If they do it, then the Attorney General's Office defends the APA decision. We'll be a party to it, but the real effort will be on the part of the attorney general. I've been told by our attorneys that it could take six to eight months or easily a year to resolve any appeal."

An attorney, Foxman has seen land-use policy procedures change over decades.

"It's long. It used to be that we could have our permits in six months. Now it takes two or three years," he said.

"Seven or eight years is very long, but I have a friend with a project on the coast of California that took nine years to permit. You've got a whole army of anti-development groups that say the same things, follow the same strategy used to drag the process out and make economic development financially unattractive and politically unpopular."

But with eight years and more than $4 million spent in the process, Foxman said he's ready for a decision.

"We're moving forward. Hopefully, will be allowed to find out just how much good we can do."

Email Kim Smith Dedam at: kdedam@pressrepublican.com