A win for Mr. Foxman?
A few years ago, when PBS was producing a documentary about the Adirondack Park, they asked me to opine about the Adirondack Club and Resort in Tupper Lake.
I don’t remember my exact words, but I expressed real doubts about the project’s future. The housing market was collapsing. The Big Tupper concept was huge and complex and appeared to be tangled up in red tape.
Developer Michael Foxman had also made some apparent missteps, including a proposal for bankrolling the massive enterprise that initially made a lot of people — even many pro-development Tupper Lakers — nervous.
Some supporters of the project were grumpy when Foxman proposed diverting the process into backroom mediation sessions, which bogged the process down.
But Foxman pared back his proposal significantly and agreed to eliminate some elements that made state officials nervous, including a ridgeline development and a shooting range.
And here we are in 2011, and it appears that the Adirondack Park Agency is poised to give the project a green-light permit, albeit with some restrictions and conditions.
Jessica Collier broke that story in yesterday’s Adirondack Daily Enterprise reporting that the APA staff has outlined broad parameters for a permit, none of which appear to be deal-breakers.
Foxman reacted to the news this way:
“I consider the documents and the APA’s action very significant,” Foxman wrote in an e-mail. “The documents evidence the APA’s concern for both the environment and the local economy. They will be helpful to all involved and should sharpen the focus of the hearing. This is a very positive step for which the APA staff should be commended.”
Opponents of the project, meanwhile, appear to be wearing down. Only one green group, Protect the Adirondacks, remains in full-bore opposition.
In a commentary written yesterday in the Enterprise, environmental activist Dick Beamish acknowledged that Foxman had navigated the regulatory process skilfully.
Hats off to would-be land developer Michael D. Foxman! He has followed to perfection the steps necessary for winning approval for his proposed development on and around Mount Morris, just south of Tupper Lake village.
Skeptics remain, in particular regarding Mr. Foxman’s ability to sell so many luxury homes in this economy.
In a public letter sent to the Enterprise, he said that his business model assumes “an average of only 40 sales a year.” That won’t be an easy lift.
The APA’s draft permit conditions seem to indicate some lingering concern about the project’s economic viability, including opportunities for the state to check to see if things are moving forward on schedule.
There is also a final round of public hearings, set to begin later this month. But no one I talk to expects there to be major new revelations.
All in all, it appears that this project has inched, stumbled and maneuvered very close to the starting line. It’s an outcome that few observers, except perhaps Michael Foxman, would have predicted a couple of years ago.
Brian, the title of this blog strikes me as odd?
I don’t think this is any big surprise. If you look at APA regulations basically there is nothing that would indicate that this project could not be approved with conditions. It is simply on a larger scale that we normally see.
The feelings of “doubt” were generated by all the hub bub created by the opposition, and even some by the supporters. The only tactic opponents had was to try and create a atmosphere of doubt and then hope the developer would be discouraged and move onto more friendly pastures.
I will say that with some of the permit conditions I would seriously be reluctant to purchase this development project from Mr. Foxman if I was a developer. I assume that it is his plan to sell soon after he gets these and other necessary permits. For example you have to see later if there are environmental issues with using a pond that you need for ongoing snow making? I am not sure you want to invest now and have the rug pulled out later when they decide there are issues? Does the APA really have the staff for the ongoing monitoring?
Brian:
You have made some quantum leaps in your blog and news article today, mischaracterizing the APA Staff’s proposed permit conditions and what they fortell for the adjudication of the project application at public hearing.
You have also completely misread Mr. Beamish’s submission published in the ADE yesterday. I hope that someday you will research and accurately report why draft conditions are prepared by APA staff and also that you will apologize to Dick Beamish for completely missing the point of his commentary and taking a portion of his entertaining piece totally out of context.
Jack –
Sorry, but it’s factually accurate that the APA staff is moving toward recommending that this permit be granted with conditions.
This reality is born out through my own research, and is clarified distinctly by these draft permit conditions.
That said, I make it clear that there are still several steps ahead in the process, including a vote by the APA board.
It is also a fact that opposition to the project has waned, and those most fiercely opposed are in some disarray.
Regarding Dick Beamish’s commentary:
I linked to his article, so people can draw their own conclusions about his message.
It’s clear that he is unhappy that this project appears to be moving forward.
But he also acknowledges repeatedly that the developer has navigated the regulatory system skilfully.
Brian, NCPR
Jack,
All Brian wrote was one accurate sentence regarding Dick’s comments in the ADE and he inserted one quote from the article. Apologize for what?
Things could come up at the hearing that could derail the project no doubt. But the story that Brian wrote and this blog look pretty accurate to me.
To report that things are moving along and it looks like they will end with a permit. What is wrong with this? Reporting will have no effect on the final outcome anyway.
Some people seem to view reporting on this topic as some kind of affront. I don’t get it?
Its probably hard to report on this subject without offending someone. If you are a Tupper Lake business person, you want one set of facts presented, and if you are an “environmentalist?” you want a different set of facts presented. Neither are concerned about the other side’s issues, although the environmentalists at least pay lip service to concern about Tupper Lake business environment. The business community seems to take any mention of any environmental issues as a personal insult.
I think “only 40” houses a year is a big stretch given the likely price of these non-lakefront properties and the present market. I don’t know the latest financing plans, but the initial proposals were pretty flaky.
“The business community seems to take any mention of any environmental issues as a personal insult.”
I think that’s an overbroad generalization.
Dick Beamish’s drippingly scarcastic commentary is wide open for inperpretation. Had he gotten to his point this would not even be discussion material.
Scratchy, I have to agree. It seems like there is quite a lot of support in TL for the APA review of this project (which should be a welcome surprise to some). The APA review is the review of the “environmental issues” surrounding the project. Environmentalists are just upset because they don’t want development even if it is done in an environmentally friendly manner.
Brian, I think the local support for the ACR will drop significantly if the details of the PILOT proposal are ever shown in the light of day. If you believe the rosy financial scenario laid out by Foxman then everything will work out fine, everyones taxes will go down and the taxing entities will be swimming money. However if you are at all realitic you have to be more than just a little skeptical. As proposed Mr F will have to sell nearly $40 Million worth of real estate just to cover the Bond payment, which by the way is primary. Keep in mind the Front street development in North Creek has had permits for almost 3 yrs and has not sold a single unit. They built one so far and have started on a second one. Mr F is predicting he will sell 83 properties in the first 3 yrs for a total of over $91 Million. IF anyone hasn’t noticed the economy and the real estate market have taken just a bit of a downturn in the past 5 yrs or so. If you dig a little you will also find the projected market prices for the ACR property has increased over 50% since the original 2005 submission to the APA. I guess Mr F must have just misunderstood the recent real estate crash or just thinks it doesn’t apply to the ACR property.. It appears he needed to cook the numbers to make the PILOT appear viable which he states is neccessary for the ACR to fly. If it is such a great project and will be valued at nearly $600 Million, why in the world would he need a PILOT program which shifts the risk to the local taxpayers in the event the project doesn’t go as plannned?
I have opinions about the ACR … and I will be glad to have this over with so I no longer have to hide them when I am in Tupper Lake.
Jim raises a very good point. I don’t live in Tupper Lake, or the Adirondack Park for that matter. But one thing I do keep my eye on is the price of real estate within the Blue Line (because I have this fantasy of one day owning property there…..yeah, fat chance, but hey, I guy can dream can’t he?). It seems the market for primary or secondary homes has dropped significantly in terms of asking prices for real estate. Heck, even during the boom times of the early and mid 2,000’s it would seem selling 83 properties of the price Mr. F would require seems very optimistic. Given the current market conditions, it borders on crazy.
I just hope the residents don’t end up getting the shaft via this PILOT. I live in Lewis County, and while a PILOT of a different stripe, we signed one for the Maple Ridge Wind Farm development that had hardly any public input (besides the county legislators and various town board members who stood to make big money from its passage….this was prior to state legislation passed to prevent such blatant conflicts of interest) and it has turned out to not be such a great deal. Residents of Tupper Lake should demand details before they give their blessing.
“IF anyone hasn’t noticed the economy and the real estate market have taken just a bit of a downturn in the past 5 yrs or so.”
and
“If you dig a little you will also find the projected market prices for the ACR property has increased over 50% since the original 2005 submission to the APA.’
Jim, which is it, the Adirondack real estate market has gone down or has the market gone up?
Paul, dig into the 6/10 submission to the APA, F-man has increased his projected market values by over 50% for his ACR residential properties. He also opined recently in an article in the ADE that the realeastate market peaked in 05-06 then took a sharp decline and leveled off. So it’s quite contradictory for him to be predicting his realestate is valued way higher than it was in 05 while the rest of the worlds’ realestate has dropped in price.
Jim,
Thanks. I understand. You were describing market values defined by him, not by the market.
I am sure any financing would be based on real market values not on his. Developers always have a much bluer sky in their calculations.
What do any of these projections have to do with an APA permit. You can certainly get a permit for a house you can’t afford right?
Has the price of high end Adirondack real estate dropped like other places? It probably hasn’t gone up 10% per year. But I follow the market pretty closely and I have not seen any kind of “drop” up there on high end stuff.
Like I said the biggest problem is that there is really no waterfront. Even the basis for his predictions seems off to me. An “Adirondack Great Camp” is on a lake not in the woods. In the woods is called a “Hunting Camp”, go there only when the bugs have gone.
PLEASE LOOK AT THE HISTORY OF RAQUETTE POND AND BIG TUPPER LAKE. IN ABOUT THE EARLY PART OF THE 1900 MARK. BIG TUPPER AND RAQUETTE POND WERE CONSIDERED THE WORST POLLUTED WATERS IN THE STATE BY THE STATE. PLEASE LOOK AT THE PHOTOS AND UNDERSTAND THAT IF ANYTHING ,THAT THE DIFFERENCE IS JUST SHORT OF A MIRACLE. THE I HAVE LIVED HERE ALL MY LIFE AS MY FATHER AND HIS FATHER AND HAVE ONLY SEEN INCREASED WILDLIFE CLEANER WATER AND A GENUINE CONCERN FOR THIS AREA AND ITS BEAUTY AND IMPORTANCE TO ALL. NO ONE COMES HERE TO DESTROY. LOCALS KNOW THIS AND LAW AND COMMON SENSE ARE IN PLACE TO PREVENT THIS. I ASK SIMPLY , DIG A LITTLE DEEPER FOR FURTHER INSIGHT OF THIS ARE OVER THE LAST HUNDRED PLUS YEARS. KNOWLEDGE BEFORE JUDGEMENT — GOD BLESS