Updated: January 22, 2010

The Chronicle > News

County pledges water and sewer services to Mountco

Published: January 22, 2010
But court decision will slow county’s expansion plans, By Edie Johnson

Chester — A little-known or understood provision of the county’s contract with the Mountco Development Corporation is raising eyebrows from Chester to Blooming Grove.

The contract guarantees that the county will provide the developer with “adequate infrastructure...sewer and water service and capacity” on the 258-property that was once the Camp LaGuardia homeless shelter (see sidebar on page 21 for full section).

The amount of capacity would be significant. Mountco plans to build 907 residences and 250,000 square feet of commercial space.

“We have to give them water and sewer?” county Legislator Tom Pahucki, whose district includes parts of the town and village of Chester, said this week. “How in God’s name does that happen? Nobody ever said anything about sewer and water. This is monumental, but it was buried deep down in the contract.”

When the contract was drawn up last March, the county legislature slammed county Executive Ed Diana over the secrecy surrounding his negotiations with Mountco. The physical services committee, which technically owns the property, was given only a summary of the contract the night before the vote. Members had only 20 minutes to review the contract itself and were not allowed to bring it home.

Pahucki voted against the contract, at the time calling it “a carnage on the people of Chester and Blooming Grove.” Other legislators agreed. But in the end, the prospect of tax revenue and jobs for local workers won the day.

The county executive’s office did not return a call before press time.

The provision is coming to light as the county continues its plan to expand the Harriman wastewater treatment plant. The expansion would consolidate sewer services in eight villages and towns who complain they are not getting their fair share of capacity.

The legislature’s rules committee and physical services committee will meet jointly at 4 p.m. Jan. 21 (as this paper goes to press), to adopt an amendment to the final environmental impact statement on the expansion.

Also this week came news likely to slow expansion plans. The Village of Kiryas Joel in Monroe won a state supreme court case prohibiting the sale of excess capacity from the expansion to neighboring towns. An environmental study must be completed before such sales could be made, the court ruled.

The plant was originally built to process sewage for Harriman, Kiryas Joel, and a part of Monroe. When its capacity was expanded to six million gallons per day, other parts of Monroe, Woodbury, South Blooming Grove, and Chester were added as the Moodna group.

Supervisor: Not for Mountco only

Town of Chester Supervisor Steve Neuhaus does not believe the expansion is for Mountco alone.

“With Mountco needing sewer I guess it adds another reason for the expansion,” he wrote. “The Town of Chester remains obligated to people/property owners paying into the districts currently existing in Chester. An expansion of the Harriman plant which Chester pays into would free up additional space for the people currently paying into the system. That’s the law, and we are obligated to provide sewer to those who are currently paying into the system. Something positive can and will come of the former Camp LaGuardia site.”

But Councilman Alex Jamieson said the news “has me speechless.” There is a waiting list for the excess capacity, including BT Holdings’ proposed 448 units behind the Chester Mall — property on which the family has for many years been contributing sewer fees.

“There would be many lawsuits if excess capacity were given to Mountco before others on an already lengthy waiting list,” Jamieson said.

Frank Fornario, Blooming Grove’s new supervisor and a former legislator, said, “I am disappointed that this expansion is being sought without any efforts yet being made about its governance.” If the Mountco proposal falls through, he said, “We should start thinking of a Plan B. There will be pressure to sell to the highest bidder.”

 
The sewer provision
Section 12c: As of each phase closing, Purchaser shall have obtained from seller (and/or third parties) all easements necessary or appropriate to ensure Purchaser, upon closing of each of the Sites, has ingress to and egress from each such site, all utilities are available to each such site’s lot line, including without limitation, gas, water, sewer, cable etc. etc.
(d) As of each Phase Closing, adequate infrastructure, including without limitation, sewer and water service and capacity, shall be available at the Property for the Project as approved or contemplated by the Project Approvals, consistent with the representations and warranty of the Seller set forth in Section 16(i) hereof and Seller shall have provided to Purchaser, before the end of the Inspection Period, a written guaranty of adequate sewer capacity for the project in a form reasonably acceptable to Purchaser.
(e) Prior to the end of the Inspection Period, Purchase shall have received a guaranty of adequate water capacity for the Project from the Village of Chester in a form reasonable acceptable to Purchaser.