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Small Businesses Vow To Continue Fighting; They Plan to Turn To Public Service Commission for Help After Public Officials Have Been Unable To Provide Relief
By Tina Traster
Champlain Hudson Power Express, in a letter dated April 14, has told North Rockland’s small businesses it has no further obligation to compensate them for losses suffered during construction of its power pipeline this year.
Further, the North Rockland Chamber of Commerce said promises from Congressman Michael Lawler and Blackstone, which owns TDI (CHPE’s parent), were never followed up after a November meeting in which its representatives said they’d take the losses under consideration.
In the letter addressed to Rock and Michelle Alexander, who own Rock’s Kitchen, and the North Rockland Chamber of Commerce, Jeremiah P. Sheehan, CHPE’s executive vice president and general counsel, responded to a March 17th letter that said North Rockland Businesses endured a collective loss of $13 million based on months of construction along Route 9W.
In its letter to CHPE, Alexander sought an update on the business community’s request for financial help. She said the group had compiled “formal documentation from 49 businesses representing $13 million in losses, along with supporting material outlining the full scope of impact across the corridor.”
She also wrote that nearly 100 businesses have been impacted and nine had closed, citing prolonged access disruption, reduced visibility, traffic pattern changes, and sustained declines in customer activity during critical revenue periods.
“The scale of documented loss compared to the absence of meaningful mitigation reflects a clear gap between project impact and response,” basically saying that the parties are very far apart in their perception of responsibility for losses to local businesses caused by the construction.
In response, CHPE’s counsel wrote: “Based on this review, we do not agree with the allegations in the March 17 letter and respectfully find no basis for entitlement to any payment from CHPE to the businesses…”
The attorney aims to defend CHPE by adding, “In direct contrast to these allegations, it is undisputed that Route 9W and all commercial driveways impacted by project construction remained open and accessible throughout the construction. He wrote that temporary construction impacts and resulting inconvenience were actively minimized and do not warrant compensation.”
“Technically open didn’t mean business as usual,” said Michelle Alexander, when asked for comment on CHPE’s response. “Our next step is at the county and local level, asking them to formally support this effort by writing to the Public Service Commission for mitigation review.”
Since last August, the Chamber worked with public officials to hold press conferences and meetings, hoping to put pressure on CHPE to step up with a big check. At the time, CHPE offered $100,000 to the Chamber to aid businesses, and later increased the offer to $150,000. But more than 40 businesses maintain they were negatively impacted by the work, which kept patrons away from Route 9W, and some have since shuttered their doors.
“We’re disappointed, we’re disheartened,” said Stephanie Melowsky, President of North Rockland Chamber of Commerce.
CHPE has long maintained that the towns were compensated for the construction upheaval. 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.
Additionally CHPE paid local property owners over $5 million for temporary and permanent easements on their properties. But the businesses say they have not and will not benefit directly from these funds.
In November, Lawler arranged a ZOOM call for the Chamber of Commerce, along with a Blackstone representative and CHPE, along with town supervisors and representatives 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.
Blackstone representative Kristen Nevins, senior managing director of government relations, at the meeting 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 had face-to-face discussion with Blackstone Group.
The Chamber has not heard any feedback from Blackstone, even though they’ve sent emails and made phone calls trying to follow up on the meeting. Lawler’s office has also been called multiple times for feedback, but Chamber members say they’ve heard nothing but “we’re still negotiating.”
“Over the past few months, I have had numerous meetings with Blackstone to address the negative impacts on our local businesses and have another meeting scheduled this week,” said Lawler.
“It’s disheartening to be told one thing and then to be strung along to think there was hope. It seems as if there’s no hope, but we will continue to fight for North Rockland’s small businesses,” said Melowsky.
CHPE says its pipeline 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.
“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,” a company representative has said.
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. 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 but to date that has not worked. 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 who wouldn’t see a penny of those taxes or otherwise be compensated for losses. Those with knowledge of the agreement say the county cannot legally use public funds to make residents or businesses whole.
