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State & Federal Dollars Will Not Bail Out Business Owners; Only CHPE Can Make Them Whole, Officials Realize
By Tina Traster
Congressman Mike Lawler called a press conference on Monday to criticize New York State and Champlain Hudson Power Express (CHPE) for leaving businesses in the 9W corridor in a financial lurch. But he, along with town, county and state officials who’ve held previous press conferences to air concerns about CHPE’s devastating construction project, was unable ride to the rescue with federal dollars for more than 100 businesses who say they’ve lost $10 million in revenue since the CHPE roadwork disruption began.
In blustery language, Lawler told the crowd of business owners and public officials on a summer-hot autumn day that the road blockages and 24/7 disruption to both businesses and residents is “unacceptable,” blaming the “state’s failure to plan and lead.”
“You don’t just shut down a main thoroughfare,” he said. “You figure it out.”
Lawler spoke about disruptions to both businesses and residents, saying the project has escalated into a quality-of-life catastrophe because of round-the-clock noise and disruption from truck noise and jackhammers.
“It’s a construction zone that never stops,” he said. “Families can’t sleep. Kids are late for school. First responders are losing precious minutes. It’s a matter of life and death.”
However Stony Point Supervisor Jim Monaghan said construction work in the residential sections north of the bridge have largely wrapped up.
CHPE’s transmission line is slated to deliver 1,250 megawatts of renewable energy to New York City. The service area does not include Rockland County.
Lawler conceded that the energy project is valuable but that it has become an overwhelming burden to Rockland’s community. It is nearly impossible to navigate Route 9W, which is an obstacle course.
The Congressman did not mention federal dollars to help businesses. He called on Gov. Kathy Hochul to declare a “state of emergency” so the federal government could mobilize SBA (Small Business Association) relief.
The North Rockland Chamber of Commerce, led by Stephanie Malowsky, has been working on behalf of businesses to advocate for financial relief for businesses that have lost revenue, let go of employees, or are teetering on closures. She said some businesses report losing between 50 percent to 70 percent of the year-over-year revenue.
After RCBJ first broke the news on the crisis in August, CHPE stepped forward with an offer of $100,000 to compensate for businesses losses. In early September, in advance of a press conference called in the Town of Haverstraw by the North Rockland Chamber and state officials, CHPE upped the offer to $150,000.
But Chamber leaders, town officials, and Lawler say $150,000 is woefully inadequate.
“It’s not relief,” Lawler said. “It’s an insult,” adding, “CHPE must stand up and do more.”
Asked whether he is in talks with CHPE, the Congressman said he said he’d recently had “conversations with representatives” where he’s laid out the importance of coming to the aid of a devastated community.
“They understand there’s a challenge,” he said. “There will be future discussions.”
But CHPE appears to be intractable at this point, saying it negotiated a fair and equitable compensation package in advance of the project’s start.
It remains unclear as to whether CHPE will cover the cost of losses given their repeated position that the company compensated towns and landlords. The towns were given about $31 million total by CHPE for public-benefit funding, including for a streetscape fund.
Prior to construction, CHPE secured agreements with affected towns and villages to utilize the rights-of-way owned by municipalities. The Town of Haverstraw got $6.8 million for a Community Fund; the Village of Haverstraw, $3.5 million for a Community Fund, and $3.85 million for a Streetscape Fund; the Village of West Haverstraw got $2.5 million for a Community Fund and $2.23 million for a Streetscape Fund; and the Town Clarkstown scored $3.9 million for a Community Fund.
Town supervisors say monies received for “community benefits,” must be used for capital improvements or “for the benefit of the community as a whole.”
Mom and pop businesses along Route 9W feel like there is nowhere to turn for relief from CHPE’s havoc. Many are reporting heavy losses; some foresee the collapse of their business. They say customers have found it too daunting to navigate the Route 9W corridor, which has become an obstacle course. They’re not sure patrons will return when CHPE completes its project, which is projected for November.
What’s especially galling to business owners is that the relief through “easements,” given to landlords has not trickled down to small businesses.
In August, Stony Point Town Supervisor Jim Monaghan sent a letter to CHPE and Gov. Hochul seeking help. The Supervisor said he has not heard from the governor’s office.
In response to our request for comment, a spokesperson from the Governor’s office said: “The Champlain Hudson Power Express is a critical clean energy project that advances the Governor’s key priorities of ensuring a reliable grid that will keep the lights and heat on for New Yorkers while boosting the state’s business climate. The contract the state signed with project developer TDI provided for tens of millions of dollars in local community benefits and hundreds of millions of dollars in local tax revenue, on top of any money TDI agreed to provide to impacted businesses. We would expect the company to continue to work with the community to mitigate any impacts.”
CHPE when it it becomes operational next year will deliver 20% of New York City’s energy, all of it clean, making up much of the clean energy lost with the closing of Indian Point, he added.
In August, State Senator Peter Harckham met with business owners to hear their plight. And weeks later, State Senator Bill Weber and Assemblyman Patrick Carroll met with local businesses. But state officials say there is no readily available money from the state for businesses.
“The pressure point is on CHPE,” said Weber, at the time. “There’s no grant money for the businesses.”
Lawler said Congress needs “permitting reform,” but that will do little to help the imperiled businesses. Because there are no obvious or immediate avenues for state or federal funding to bail out businesses, elected officials will have to continue to press CHPE for compensation.
But CHPE may be holding firm.
“It was understood years in advance that construction would be temporarily disruptive to the businesses and residents in Rockland County, which is why in 2018 CHPE and local leaders negotiated a $31 million community benefit plan that includes $9 million in streetscape improvements for Stony Point in the business district along the 9W corridor,” said a CHPE spokesman. “CHPE has also provided over $500,000 in funding to not for profits and small businesses in Rockland County, including Stony Point, will pay almost $300 million in taxes to those same communities once the project is operational, and has already committed $150,000 for a North Rockland Chamber of Commerce small business fund.”
