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A Blackstone Representative Says Company Will Take a Look At Financial Losses Businesses In Route 9W Corridor Have Suffered
By Tina Traster
Will there be a Christmas miracle for the businesses along the Route 9W corridor decimated by the protracted pipeline project?
Stony Point, Haverstraw and Congers businesses have a soupçon of hope that Blackstone, which owns TDI (Champlain Hudson Power Express parent), may yet save the day after hearing about the financial beatings more than 115 businesses have taken since the pipeline construction began six months ago, including $13 million in losses.
For months, the North Rockland Chamber of Commerce has worked with public officials to hold press conferences and meetings, hoping to put pressure on CHPE to step up with a big check. This time, though, Blackstone was at the table – and those around it are hoping that will make a difference. A Blackstone representative, Kristen Nevins, senior managing director of government relations, told the group the company would “take a look” at the financial losses racked up by area businesses, and offer feedback sometime after the Thanksgiving holiday. No promises were made, though this is the first time the North Rockland Chamber of Commerce and local officials have had face-to-face discussion with Blackstone Group.
CHPE LLC is a wholly owned subsidiary of TDI-USA Holdings LLC a/k/a Transmission Developers, Inc. (TDI), a development company owned by the Blackstone Group.
Two weeks ago, Congressman Mike Lawyer arranged a ZOOM call with CHPE, Blackstone, and the North Rockland Chamber of Commerce, which is advocating to make the businesses whole. Also present were town supervisors or reps from Stony Point, Haverstraw, and Clarkstown. Lawler invited State Senator Bill Weber, County Executive Ed Day, both Republicans. Assemblyman Pat Carroll, a Democrat, was not invited.
As they have done over the course of many months, town, county, state and federal officials made the case for compensating businesses for losses caused by traffic obstructions and delays. Until this meeting, CHPE had laid its best offer on the table: $150,000 for the businesses. But officials and North Rockland Chamber members have scoffed at what all have said is paltry relief for the existential problems caused by the pipeline construction. At least four businesses have closed since the project began; a host of others say business has slowed to a crawl because patrons cannot get to their places of business.
In an unexpected twist during the ZOOM call, a CHPE representative said the company was willing to go back to the drawing board and rewrite the MOU (memorandum of understanding), which was the roadmap that stipulated what each town will receive for the disruption. Playing a new hand, CHPE suggested the remaining monies be allocated to the hurting businesses, rather than being slated for townwide projects. Both Haverstraw Supervisor Howard Phillips and Stony Point Town Supervisor Jim Monaghan both balked at the suggestion, saying that the unpaid portion of the CHPE monies were already earmarked for municipal projects. Clarkstown’s representative did not respond to the offer, according to sources who were on the call.
Prior to construction, CHPE secured agreements with affected towns and villages to utilize the rights-of-way owned by municipalities, but not all the monies have been paid out to the towns. 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. The Town of Stony Point is slated to receive $5.3 million for capital improvements, with $2.9 million for road improvements once the project is completed.
Until this ZOOM call, CHPE has maintained that towns were handsomely compensated for the work, though at the meeting.
In prior comments, CHPE has 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 percent 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.
CHPE did not return an immediate response seeking comment.
Day has also tried to use the leverage of the county by threatening to withhold his signature on a PILOT (Payment in Lieu of Taxes) agreement he negotiated with CHPE might bring them to the table to negotiate. He is hoping a tactical ploy will bring CHPE to the table to cough up more funds to assist businesses that have been negatively impacted by the pipeline project. However, even if the county does withhold the PILOT – and CHPE is on the hook for more taxes over a 30-year period – the difference in monies does not translate to the businesses or residents seeing a penny of those taxes to compensate for losses. Those with knowledge of the agreement say the county cannot legally use public funds to make residents or businesses whole.
