Gov. Eliot Spitzer”™s agreement in principle with developer Crossroads Ventures L.L.C. and other parties to build Belleayre Ski Resort in the Catskill Mountains includes state investment of millions of dollars to expand the adjacent state-owned ski center. That investment doesn”™t sit well with the owners of neighboring ski resorts at Windham and Hunter Mountain.
At an informal meeting with Hudson Valley Business editors and reporters held at Westfair Communications Inc.”™s offices on Jan. 30, the governor said he could understand the private owners”™ concerns, but that in the end, the expansion of Belleayre would benefit everyone.
“We need to work together to make the Catskills a skiing destination,” Spitzer said. “The way to do that is build out Belleayre.”
Crossroads Ventures”™ attempts to build the resort had been delayed for years by opposition from environmentalists and residents in the area, but after the signing of the agreement, which occurred last September and includes the purchase and preservation of land previously slated for development by the state, it is back on track and is beginning the state environmental review process. Â
Spitzer said the revised plan is “significantly smaller” than Crossroads”™ original proposal. He characterized the agreement as “a good resolution. The balance is economic development concerns. It”™s job creation. It creates housing and helps in a region that is desperate for a bigger tax base and more jobs. Belleayre is a state asset that we need to invest in to keep it current.”
He said the revised proposal “was fine from a water perspective.” (Prior to the agreement and the redesign of the resort, a big bone of contention was development on land that drains into the Ashokan Reservoir, which will now be preserved.)
The governor said he was also confident Dean Gitter, principal at Crossroads Ventures, could attract the necessary funds for the $400 million project. “We”™ve looked at it carefully enough to see he has real equity. I wish him well. I want him to make money on it because it”™s better for the region.” Moving ahead with the project, he said, “is the right thing to do.”
Asked about the federal government”™s rejection of the state”™s approval of an Indian casino in Monticello, Spitzer said he was disappointed. “It would have been 5,000 jobs. The Catskills desperately need it, which is why this was so frustrating.” Would he consider an amendment to the state constitution to allow for new casinos off Indian land? “It seems like a hard thing to get done,” the governor said, given all the opposition.
One of the governor”™s priorities is reducing the size and cost of the state government, which exceeds that of other states. “We have 4,200 different taxing entities,” he said. Some of the possible consolidations under discussion in his office are the formation of special districts, such as sewer or fire, combining BOCES, and acquisition of health care, which could result in volume discounts and other efficiencies. “We need to negotiate more effectively,” he said. “That”™s smart business.”
Regarding his economic development priorities in the Hudson Valley, the governor named the half a billion-dollar investment in expanding Stewart Airport and creation of a reliable, speedy rail link between New York and Albany. He said the state”™s investment in helping build a pedestrian walkway and bike path on the old railroad bridge at Poughkeepsie would be a big boost to tourism in the area.
Spitzer said the state was committed to a firm timetable for coming up with a proposal to rebuild or replace the Tappan Zee Bridge. Finding the money was “the 800-pound gorilla” and he said the funds would have to be found in the private equity market besides the public sector.
He said local oversight of the state”™s Empire Zones “had not been terribly effective” and noted that the state was now tracking whether the beneficiaries of the Empire Zones had followed up on their commitments. (He acknowledged in some cases this was impacted by factors outside businesses”™ control, such as a changing economy.)
The state is also examining the impact of the industrial development agencies, although Spitzer said they would most likely continue in some form, and looking to revamp the brownfields program. Currently, the brownfields law awards the developer on the basis of the total investment of the project rather than the cost of the cleanup, which is an advantage to New York City developers. “The ratios didn”™t benefit upstate,” Spizter acknowledged. He said he is trying to build a consensus for a change in the law ”“ not easy, given that any change means “there are winners and losers.”
Regarding the Empire State Development Corp.”™s dividing the state into two upstate/downstate regions, overseen by different directors, Spitzer said, “It recognizes the reality you need to focus on the upstate economy. There”™s been too much energy and dollars going to New York City.” He said the inclusion of the Hudson Valley, Westchester, New York City, and Long Island into the downstate region is appropriate because “it”™s one contiguous economy.”
He said the strategy is working: ESDC”™s efforts upstate have helped bring 8,000 new jobs and retained 25,000 jobs to the devastated upstate economy. In the Hudson Valley, he commended U.S. Rep. Maurice Hinchey”™s support of The Solar Energy Consortium and said the state planned to invest $5 million in the venture.
On the subject of new energy production, Spitzer said everything”™s on the table ”“ hydro, liquid natural gas, nuclear, and renewables, although clean coal “was looking less clean.” He”™s seeking to resurrect Article 10 to fast-track the construction of new power plants. He hinted that nuclear power was a serious contender, since the impact on global warming will be a key concern, although he noted that the Indian Point nuclear plant “was poorly sited. There are other nuclear possibilities.”
