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Crossroads Ventures, LLC

December 5, 2003

STATE OF NEW YORK
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
NOTICE OF PUBLIC HEARING
NOTICE OF ACCEPTANCE OF DRAFT ENVIRONMENTAL IMPACT STATEMENT
- and -
NOTICE OF LEGISLATIVE PUBLIC/SEQR HEARING AND ISSUES CONFERENCE

Applicant: Crossroads Ventures, LLC, PO Box 267, Mt. Tremper, NY 12457

Project: The Belleayre Resort at Catskill Park

DEC Application Numbers: 0-9999-00096/00001 - Use and Protection of Waters
0-9999-00096/00003 - Public Water Supply (Big Indian)
0-9999-00096/00005 - State Pollutant Discharge Elimination System (Big Indian)
0-9999-00096/00007 - Section 401 Water Quality Certification
0-9999-00096/00009 - State Pollutant Discharge Elimination System (Wildacres)
0-9999-00096/00010 - Public Water Supply (Wildacres)

Project Description:

Crossroads Ventures, LLC has submitted applications for a proposed development to be known as "The Belleayre Resort at Catskill Park." The project includes a total of 400 hotel rooms, 351 additional hotel and housing units, a 21-lot single-family residential subdivision and two 18-hole golf courses. The project would be developed within 1,960 acres in the Catskill Mountains of Ulster and Delaware Counties, with a total of 573 acres disturbed and the remainder left undisturbed.

The project site is located in the Towns of Shandaken (Ulster Co.) and Middletown (Delaware Co.), within the New York City Catskill and Delaware Watershed (the Pepacton and Ashokan Reservoirs), and within the boundaries of the New York State Catskill Park. The project is adjacent to the state-owned Belleayre Mountain Ski Center.

The project is divided into two related but geographically distinct developments:

The proposed Big Indian Plateau would be developed on a 1,242 acre site east of Belleayre Mountain Ski Center. A total of 331 acres would be developed to build an 18-hole golf course, a 150-room hotel, and 183 additional hotel/detached lodging units in 77 buildings, and related infrastructure. This project site lies within the New York City Ashokan Reservoir watershed, and would be served by central water (provided by an on-site well) and central wastewater treatment, with effluent discharge to Birch Creek and/or golf course irrigation.

The proposed Wildacres Resort would be developed on 242 acres of a 718 acre site west of the Belleayre Ski Center and would include an 18-hole golf course, a 250-room hotel, 168 additional hotel/detached lodging units in 21 buildings, and a 21-lot subdivision of single-family homes, and related infrastructure. This project would be served by central water (provided by the Village of Fleischmanns water system) and central wastewater treatment, with effluent discharged to an unnamed tributary of Emory Brook and/or golf course irrigation. This site is within the New York City Pepacton Reservoir watershed.

Individual Water Supply permits under Title 15 of Environmental Conservation Law (ECL) Article 15 and State Pollutant Discharge Elimination System (SPDES) permits under Titles 7 and 8 of ECL Article 17 have been requested for these developments. In addition, a Use and Protection of Waters permit under Title 5 of ECL Article 15 is required for proposed road crossings of regulated streams on the property and for the treated wastewater outfall structures to Birch Creek and the Emory Brook tributary. Also, an application for a Water Quality Certification in accordance with Section 401 of the Clean Water Act has been submitted. A Nationwide permit has been issued by the U.S. Army Corps of Engineers pursuant to Section 404 of the Clean Water Act for this project.

Draft SPDES Permits:

Department staff have prepared separate draft SPDES permits for the Big Indian and Wildacres components of the project. These draft permits contain staff proposed effluent limitations and monitoring requirements for the wastewater treatment and stormwater treatment discharges planned for the development. Sewage Works Corporations, established pursuant to Transportation Corporation Law, are proposed to be responsible for the operation of each treatment facility. For the Big Indian Plateau, an average of 87,000 gallons per day of treated sanitary wastewater are proposed to be discharged to Birch Creek. For the Wildacres Resort, an average of 112,000 gallons per day of treated sanitary wastewater are proposed to be discharged to an unnamed tributary of Emory Brook. During certain periods, treated sanitary wastewater is proposed to be used as irrigation water for both golf courses. A SPDES "Fact Sheet" has been prepared for each permit and provides background documentation supporting DEC's proposed draft permits.

State Environmental Quality Review Act (SEQRA):

Under the State Environmental Quality Review Act (SEQR), the project associated with this permit is classified as a Type I Action with the Department of Environmental Conservation (DEC) designated as the lead agency. It has been determined that the project may have a significant effect on the environment. Accordingly, a Draft Environmental Impact Statement (DEIS) has been prepared and accepted as complete by DEC as SEQR lead agency.

State Historic Preservation Act (SHPA) Determination:

A cultural resources survey has been completed. Based on information provided in the survey report, the New York State Office of Parks, Recreation and Historic Preservation has determined that the proposed activity will have no impact on registered or eligible archeological sites or historic structures. No further review in accordance with SHPA is required.

New York City Watershed TMDL:

The sponsor has submitted information to the Department regarding its proposal for demonstrating compliance with the Department's established Total Maximum Daily Load (TMDL) allocations for phosphorus in the watersheds tributary to New York City Ashokan and Pepacton reservoirs.

Based upon the submitted information, Department staff have proposed a revision to the established TMDL.

Document Availability:

The application materials, SPDES fact sheets, the draft SPDES permit, the Draft EIS and other project information are available for your review at the Department's Office of Hearings and Mediation Services located at 625 Broadway, Albany, NY 12233-1550; and the Departments's Region 3 Headquarters, 21 South Putt Corners Road, New Paltz, NY 12561-3042, during normal business hours between 8:30 AM and 4:45 PM, Monday through Friday, contact: Brenda Bubenicek at (845) 256-3021. In addition, these documents are also available for review at the Skene Memorial Library, Main Street, Fleischmanns, NY 12430.

An electronic (CD ROM) copy of the DEIS is available at the following locations:

Fairview Public Library
43 Walnut Street
Margaretville, NY 12455

Morton (Pine Hill) Library
Elm Street
Pine Hill, NY 12465

Skene Memorial Library
Main Street
Fleischmanns, NY 12430

Phoenicia Library Assoc.
Main Street
Phoenicia, NY 12464

The CD ROM and a paper copy of the DEIS are also available for purchase directly from the project sponsor. Please contact Mr. Ken Graham directly at (845) 688-7740.

Written Comments:

All written comments concerning the various applications before the Department, the draft SPDES permits and the DEIS must be received by February 24, 2004 and must be sent to the Department Contact Person:

Alexander Ciesluk, Jr.
Deputy Regional Permit Administrator
NYSDEC
21 South Putt Corners Road
New Paltz, NY 12561-1620

Notice of Legislative Public Hearing:

In accordance with the provisions of 6 NYCRR Parts 617, 621 and 624, legislative public hearings will be held before Administrative Law Judge Richard R. Wissler to receive unsworn statements from the public on the application and the DEIS at two sessions. The first hearing will be held on Wednesday, January 14, 2004, at the Margaretville Central School, 415 Main Street, Margaretville, New York, New York, from 4:00 P.M. to 5:30 P.M., and then recommencing at 7:00 P.M. The second hearing will be held on Thursday, January 15, 2004, at the Onteora Central School, 4166 State Highway 28, Boiceville, New York, from 4:00 P.M. to 5:30 P.M., and then recommencing at 7:00 P.M. Should inclement weather prevent either or both hearings from proceeding, the hearing will be held in a single session on Tuesday, January 20, 2004, at the Onteora Central School, 4166 State Highway 28, Boiceville, New York, commencing at 7:00 P.M. All persons, organizations, corporations, or government agencies which may be affected by the proposed project are invited to attend the hearing and to submit oral or written comments. It is not necessary to file in advance to speak at the legislative hearing. Lengthy statements should be in writing and summarized for oral presentation. Reasonable time limits may be set for each speaker to afford everyone an opportunity to be heard. Equal weight will be given to both oral and written statements. The hearing location is fully accessible to persons with a mobility impairment. Interpreter services shall be made available to deaf persons at no charge upon written request to the ALJ at least 10 days prior to the hearing, pursuant to the State Administrative Procedures Act (SAPA). For those unable to attend the legislative public hearing, as indicated above, written comments may be submitted to Alexander Ciesluk, Jr., NYSDEC Region 3 Headquarters, 21 South Putt Corners Road, New Paltz, NY 12561-1696, no later than February 24, 2004.

Notice of Issues Conference:

A pre-adjudicatory hearing issues conference will be held on Tuesday, March 9, 2004, at 10:00 A.M., at the Middletown-Hardenburgh Fire District and Middletown Fire Hall, Church Street, Margaretville, New York, and will continue on succeeding days as necessary. At the issues conference, the ALJ will determine what issues, if any, require adjudication, and will define the scope of such issues. The purpose of the issues conference will be to define, narrow and resolve, if possible, the issues concerning the permit application which may be raised. Participation at the issues conference will be limited to the Department Staff, the Applicant and those persons requesting party status pursuant to 6 NYCRR 624.4 and 624.5 in advance of the issues conference.

IT IS EXTREMELY IMPORTANT THAT ANY PERSONS REQUESTING PARTY STATUS APPEAR OR BE REPRESENTED AT THE ISSUES CONFERENCE IN ORDER THAT ALL VALID ISSUES MAY BE FULLY DISCUSSED. An adjudicatory hearing will, if necessary, be scheduled following the issues conference. The issues conference may be canceled if no filings for party status are received by the deadline listed below.

Filing for Party Status and Proposed Issues

To participate at the issues conference, parties must file a written petition requesting party status including the facts intended for presentation pursuant to 6 NYCRR 624.4(c) and 624.5(b). In addition, any petition must fully identify the proposed party and the name(s) of the person(s) who will act as the party's representative(s), the party's environmental interests, the statutory considerations relevant to the project, whether the request is for full party status or amicus status, and the precise grounds for opposing or supporting the project. Mere opposition to the project is not a sufficient basis to be granted party status.

If seeking full party status, the petitioner must propose issues that could result in permit denial, major modification of the proposed project or the imposition of significant permit conditions. The petition must identify all statutory and regulatory requirements which may not be met, and explain why. If a party intends to rely upon expert testimony, the petition must also include an offer of proof that specifies the witness(es), the nature of the arguments and other documentary evidence that the party intends to present at the hearing, and the grounds upon which the assertions are based regarding the proposed issues.

For amicus status, the filing must identify the nature of the legal or policy issues to be briefed, and provide a statement explaining why the proposed amicus is in a special position with respect to those issues, as required by 6 NYCRR 624.5(b)(3).

Persons having similar interests of concern are encouraged to file as a consolidated party. The hearing provisions can be found at www.dec.state.ny.us, Hearings & Mediation, Guide to Permit Hearings.

All petitions requesting either full party status or amicus status must be received at the DEC Office of Hearings and Mediation Services by 4:00 P.M. on Tuesday, February 17, 2004. Such filings must be submitted to the following: Richard R. Wissler, Administrative Law Judge, NYS DEC Office of Hearings and Mediation Services, 625 Broadway, Albany, NY 12233-1550; Carol Krebs, Esq., Assistant Regional Attorney, NYSDEC Region 3, 21 South Putt Corners Road, New Paltz, New York 12561-1696; and the attorneys for the Applicant, Daniel Ruzow, Esq. and Terresa Bakner, Esq., Whiteman, Osterman & Hanna, One Commerce Plaza, Albany, New York 12260. Electronic filings and service by fax will NOT be accepted.

Statutory and Regulatory Provisions:

Environmental Conservation Law Article 1 (General Provisions); Article 3, Title 3 (General Functions); Article 8 (Environmental Quality Review); Article 15 (Water Resources); Article 17, Titles 7 and 8 (Permits and Certificates and SPDES); Article 70 (Uniform Procedures); Title 6 of the Official Compilation of Codes, Rules and Regulations of the State of New York (6 NYCRR) Parts 750-758 (SPDES); Part 617 (State Environmental Quality Review); Part 621 (Uniform Procedures); and Part 624 (Permit Hearing Procedures).

Summary of Important Dates and Times:

Wednesday, January 14, 2004, 4:00 P.M. to 5:30 P.M. and 7:00 P.M...Legislative Public Hearing
Thursday, January 15, 2004, 4:00 P.M. to 5:30 P.M. and 7:00 P.M.......Legislative Public Hearing
Tuesday, January 20, 2004, 7:00 P.M......Alternate Date for Legislative Public Hearing, if required
Tuesday, February 17, 2004, 4:00 P.M.....................................Deadline for Filing for Party Status
Tuesday, February 24, 2004.................................................Deadline for Filing Written Comments
Tuesday, March 9, 2004, 10:00 A.M.................................................................Issues Conference

For further information please contact: Alexander Ciesluk, Jr., NYSDEC Region 3 Headquarters, 21 South Putt Corners Road, New Paltz, NY 12561-1696; Telephone: (845) 256-3014.

James T. McClymonds
Chief Administrative Law Judge

Albany, New York
December 5, 2003

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