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Congressman Lawler, Who Helped Broker the Agreement, Said Businesses Applying for Relief Must Forego Litigation Against CHPE
By Tina Traster
North Rockland businesses, the North Rockland Chamber and public officials gathered on Tuesday to celebrate a $1 million compensation package from The Blackstone Group, which is the parent company of Champlain Hudson Power Express (CHPE).
The announcement made at a press conference held by Congressman Mike Lawler in front of the Stony Point Town Hall marked the culmination of a long and protracted battle to get CHPE to ease the financial impacts businesses have suffered over the past year due to construction in the 9W corridor.
Lawler said CHPE was setting up a “$1 Million Good Neighbor Fund” that would be administrated by the Community Foundation of Orange, Sullivan and Rockland County.”
“I’m proud to have helped broker this arrangement,” said Lawler, acknowledging the achievement was the result of joint advocacy on the part of the impacted small businesses, the Chamber of Commerce, and public officials.
“This is what can happen when everyone works together to solve a problem,” he added.
The North Rockland Chamber, which has tirelessly championed the pipeline company for help over the past year, voted to accept the $1 million compensation package last week. In a letter dated March 17 sent to CHPE, businesses wrote that they’d endured a collective loss of $13 million. At the time, CHPE said it had no further obligation to compensate the business community for losses suffering during construction.
More than once, Lawler said the disruption caused by CHPE’s pipeline construction project should have been contemplated and accounted for prior to the start of construction. While town supervisors and a handful of commercial landlords negotiated compensation packages prior to work beginning, the businesses along Route 9W, from Stony Point to Congers, had to go it alone. The North Rockland Chamber says at least nine businesses have shuttered; many have taken a financial bath.
“This had significant impact that should have been taken into account and not in the aftermath,” he said, adding that the CHPE project should serve as a warning for municipalities to think through the impact of large-scale projects in the future.
Blackstone has said the $1 million fund is the best and final offer.
“This is more than a number,” said North Rockland Chamber of Commerce president Stephanie Melowsky. “This represents survival and it represents hope.”
Over the past two years, “our small businesses have faced extraordinary challenges,” adding that the construction disruptions caused road closures, parking issues, closed off access, limited visibility. Businesses had to make difficult decisions about staffing, hours and “even whether they could keep their doors open.”
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.
Neither CHPE nor Blackstone representatives were present at the news conference, but Lawler read a statement from CHPE’s representative Jen Laird White that said “the CHPE team is proud of the significant support along the route, and the Good Neighbor Fund is further reflection of that commitment.”
The Chamber must “put $1 million in a fund, managed by an outside entity, but would need to determine what information each business would need to submit to apply by a deadline” of the Chamber’s choosing, according to Lawler, who had arranged the negotiation between the Chamber and Blackstone in November. “An independent accountant or auditor would review all the submissions and based on the totality of the submissions, would determine how to distribute the funds to the small businesses.”
Businesses Applying For Funds Cannot Sue CHPE
Businesses that apply for funds, according to Lawler, will forego any right to bring litigation against the companies.
Town Supervisor Amy Stamm said she and former Supervisor Jim Monaghan continued to fight for relief.
“Businesses are the backbone of the community,” Stamm said. “They are gathering places. The business community is what makes Stony Point special.”
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.
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.
During the course of negotiations, County Executive Ed Day 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.
Asked if he was satisfied with the $1 million fund, Day said he intends to refrain signing the agreement until he “sees what happens.”
