T-REX CAPITAL SELLING INTEREST IN WHITEFACE LODGE

Citing the downturn in the real estate market, the owner of a luxury resort in Lake Placid is selling off its interest in the property.

Connecticut-based T-Rex Capital says it’s transferring its interest in The Whiteface Lodge to an affiliate of Lehman Brothers, the company’s lender.

Cliff Preminger, President of T-Rex Capital, said he regrets not being able to see the project through to fruition.  “We have a great staff of people there who did an excellent job, and I feel very badly we can’t continue with them.  The part we don’t control is the market.  The market isn’t there.  It’s not supporting the level of sales necessary to make the project successful.”

T-Rex Capital purchased the luxury 86-suite lodge in 2006 for $60 million from Lake Placid developer Joe Barile.

The property is run under the fractional ownership system, where each of the units is divided into four week intervals and sold to multiple buyers.  When the suites aren’t occupied by their owners, they’re rented out as hotel rooms at the resort.

While the hotel-side of the property was successful, Preminger says it’s not enough of an economic engine to support the lodge itself.  “Without real estate sales there isn’t enough to justify the economics of the deal,” he said.

The new owners of the lodge are an affiliate of Lehman Brothers, a New York City-based global financial services firm.  Calls to a Lehman Brothers spokesman were not immediately returned yesterday.

However, sources told WNBZ that the property itself will be run by Gemstone Resorts International, a Utah-based hotel management company.

Preminger says he believes the new owners are planning to retain all of lodge’s employees.  But beyond that, he’s not sure what they’re planning to jump start the real estate side of the business. 

“I have no idea what the new owners are going to do with the property.  But if they continue to operate it in the same first-class manner that it’s been operated, I would assume the hotel itself, the resort will enjoy continued success,” Preminger said.  “As far as the real estate market - your guess is as good as mine.  I don’t have a crystal ball.”

The transaction is expected to be finalized this month.

Jim McKenna, President of the Lake Placid Essex County Visitor’s Bureau, said they noticed a drop off in sales of the Whiteface Lodge’s units not long after T-Rex Capital purchased the property.  Occupancy tax revenues, however, show the hotel has been doing well, he said.

McKenna said the second home market has been taking a hit from the downturn in the economy.  But he still feels the Whiteface Lodge will continue to be an important lodging property for Lake Placid.  “I think overall this property does offer a unique experience for somebody that might be looking at the second home experience in the future,” he said.  “It seems to be affordable compared to other ones and it’s got the amenities built in.  I think it’s good for the Adirondacks – this type of second home rather than total subdivisions.”

The lodge has been closed for the last two weeks.  Reservations staff said Thursday they’ve been undergoing renovations and will be reopening today.

-Chris Knight

E-911 SYSTEM DOWN IN SOUTHERN FRANKLIN COUNTY

Crews are working to repair Franklin County’s 911 system after a utility crew dug up the county’s trunk line that serves the southern end of the county.

“A Verizon crew dug up our 911 trunk line that went to Tupper Lake and Saranac Lake and a couple of our incoming lines,” said John Bashaw, the E-911’s communications specialist. “They are working on them right now. We have radio contact with Tupper and Saranac Lake.”

In the meantime, Saranac Lake residents who need to report an emergency should dial 891-2211 that rings directly in the village firehouse. That number is 891-2211.

In Tupper Lake, residents should call village police dispatchers directly at 359-9111.

The breach occurred around 8 a.m., Bashaw said. He said callers who have an emergency and dial 911 still might reach the county E-911 dispatchers but there are delays.

In the meantime, authorities on the southern end are advising Saranac Lake residents to dial 891-2211 and 359-9111 in Tupper Lake.

-Jacob Resneck

TL BOARD ASKS ASSESSOR TO CUT REVALUATION 30 PERCENT

In an effort to find compromise, a divided Tupper Lake town board has recommended that the town assessor reduce the recent revaluation by 30 percent.

Town board members met Thursday afternoon to decide what they should do about a reassessment that would increase the value of all properties in the town from $390 million to $521 million in less than four years.

The board’s advisory resolution – which has been agreed to by Town Assessor Larry Cole – will lower the town equalization rate to 70 percent.

It passed 3-2 with Supervisor Roger Amell and Councilors Kathy LeFebvre and Jay Skiff in favor. Shawn Stewart and John Button dissented.

Stuart and Button had suggested passing another motion – that the town formally ask the assessor to postpone the revaluation. “I think we should just throw it out and add the properties to the old assessment and live with that for a year,” Stuart said.

“I think it’s more than reasonable to ask the assessor to work off the old tax rolls for one more year while we get those new numbers straightened out,” Button said. “We can figure at a later time how we’re going to do that. I don’t think that’s unreasonable at all.”

But the majority of the board disagreed and defeated their motion to recommend that the revaluation be discarded.

Town Councilwoman Kathy LeFebvre said the town assessor has already said he’s not willing to do that and said such a move might sink any chance of a compromise.

Supervisor Roger Amell hinted that scrapping the revaluation could cost the town its assessor. “I think what’s gonna happen is if it doesn’t get accepted, he’s resigning,” Amell said.

There had been talk that Cole was going to retire, but he has indicated to the board that he’d like to stay on.

Scores of property owners have come to the town board, complaining that they feel the recent reassessment is flawed. Town board members have noted that they have no power to reject the work of the town assessor and that landowners can take their concerns to the Board of Assessment Review to have their assessments adjusted.

Earlier this week, a town meeting on Monday hosted an overflowing crowd of property owners who said the revaluation was flawed. Yesterday’s meeting, held at 4 o’clock on a weekday, had a much lighter attendance with about a half-dozen property owners.

Peter Day, who owns numerous residential and commercial properties in the community, had warned the board that disgruntled property owners have already retained an attorney to bring a lawsuit.

He said after the meeting that the board’s action likely didn’t stave off a lawsuit.  “There will be lawsuits because the inequities are there,” Day said. “And there will be a class action lawsuit. There’s many people who have come to me and come to other people and said we will step up with money.”

In a previous interview, Town Assessor Larry Cole defended his office’s work and noted that he’d come under similar criticism when the last reassessment in Tupper Lake was undertaken in 2003.

-Jacob Resneck

VILLAGE BOARD WORKS TO PARE DOWN BUDGET

Saranac Lake Village Board members held a budget work session Thursday night in an effort to pare down what would be a 5.6 percent increase in general fund spending. 

About a dozen local residents sat in the audience as trustees Jeff Branch, John McEneany, Susan Waters and Christy Fontana went line by line through the projected revenues and expenditures for the 2008-2009 fiscal year.  Mayor Tom Michael was absent.

The board drafted a list of questions for Village Manager Marty Murphy and identified a number of potential cuts.

Trustee Branch suggested closing the village-run Mt. Pisgah Ski Center for one night a week and cutting back on the number of ski attendants to save money. 

“I would think DPW would be another area to x-ray,” said Trustee Susan Waters.  She talked about the possibility of outsourcing or contracting out some of the DPW workload.

Waters also wanted to know how much fund balance and contingency money was being set aside.  Branch said they need to have more control over contingency funds.   “Contingencies make it awfully easy to spend without question,” he said.

Funding for youth programs was discussed, but no final decisions were made. 

Waters said the village has had to cover $2000-$3000 in cost overruns for the Saranac Lake Summer Youth Program each year.  She said they shouldn’t have to keep bailing the program out.  “I’d like to see a better system,” she said.

The youth program is seeking an additional $2500 from the village this year.  The Saranac Lake Youth Center is asking for a $7000 increase.

Branch indicated he’d support providing more funding for the programs, but just how much hasn’t been formalized.  “I’d like to see us do better there,” he said.  “I think it’s important.”

One point of contention surrounded $2800 budgeted for the human resources consulting firm that’s been working with the village.

Branch suggested the money be cut.  “There are a lot of other resources out there,” he said.

But Trustees Waters and Fontana noted that some mandated employment policies and procedures have yet to be written.  “Let’s ask where we are in that process,” Waters said.

Fontana noted that personnel evaluations haven’t been getting done.  “We have people with empty personnel files,” she said.

Earlier in the meeting, Keith Wells of the Red Carpet Team and the Saranac Lake Area Chamber of Commerce, had asked about the board’s strategy on the budget – specifically if they were just looking to make cuts or if they supported making investments that could lead to economic development.

Branch said they have to find a balance between providing services and keeping taxes down.  “It’s a double-edged sword,” he said.  “I don’t want to reduce services.  But when is the breaking point.”

The board will be holding another budget work session next week.  The budget has to be adopted by May 1.

-Chris Knight

LIBRARY TO MARK RENOVATION OF COMMUNITY ROOM

The public is being invited to a reception this evening to mark the grand reopening of the newly renovated Cantwell Community Room of the Saranac Lake Free Library.

The $75,000 project is the latest in a series of upgrades to the library over the last five years that have included a new children’s wing, wildlife museum and other improvements.

Betsy Whitefield is the library’s director. “In 2003 we renovated the entire upstairs of the building and did the additional space,” she said.  “As a result the Cantwell Room was starting to look a little old and tired.  We decided that, with a 50 percent grant match available, that it was a good time to go out and seek the funds and begin this project.”

The effort began in February of 2007 when a group of 15 people met to discuss the improvements that were needed to the community room.

The upgrades they identified, which have now been completed, include improvements to technology and security, better art display areas, a handicapped accessible ramp, a projection screen and more functional kitchen.  Making the community room a more inviting and attractive space was also a priority.

The library received a $37,000 grant from the New York State Library.  Another $47,000 was collected through a series of fundraisers and donations.

Jan Kibben, a library trustee and chair of the buildings and grounds committee, said the money was raised in a relatively short period of time, from August to December of last year.  “To pay for this renovation we didn’t take any money from our operation budget, reduce any services or use any local taxpayer contributions,” she said.  “This was all money raised for this purpose.”

The community room is used for library programs, monthly arts shows, the brown bag lunch program and a children’s summer reading program. It’s also available to local organizations as meeting space.

Kibben said they’d like more people to use the room. “I’m really hoping there will be more of a demand for the room now that it looks better so we can provide more of a service to the community.”

Whitefield said all the improvements that have been made to the library couldn’t have been done without community support. “In the last five years we’ve done a complete renovation of the entire physical plant of the library, and it’s because of the support we get from the community.  I was at a conference just this last week at the Sagamore that the Gates Foundation put on to help libraries learn about advocacy and I was kind of smug sitting there because we have done so much.”

Asked if there are any other projects in the works for the library, Whitefield said no.  “I think we need to take a rest,” she said.  “Right now we’re feeling pretty happy with what we’ve done.”

This evening’s grand opening event, which runs from 5-7 p.m., includes a celebration of the new and improved community room and a brief program at 5:30 p.m.  It’s also the opening of the Centennial Art Show at the library.

-Chris Knight

MAJOR POT BUSTS REPORTED AT THE BORDER

The U.S. Border Patrol is reporting two big marijuana busts along the New York-Canadian border.

The first was Tuesday near Westville.  Customs and Border Protection agents arrested seven people for allegedly attempting to smuggle more than 700 pounds of marijuana into the country.  The pot has a street value of almost $3 million.

Then on Wednesday, Border Patrol conducted a traffic stop in Massena and arrested two people who allegedly had 100 pounds of pot and along with oxycodone, percocet, methadone tablets, and a loaded Glock handgun.

The driver, a 39 year old male and the passenger, a 24 year old male, were arrested.

The marijuana had a street value of $400,000.

-Chris Knight

CHATEAUGAY MAN CONVICTED OF ROBBERY

After a four day trial, a Chateaugay man was found guilty Thursday by a Franklin County Court Jury of second-degree robbery and second-degree criminal use of a firearm.

The charges against 25 year-old Jeremiah Monette stemmed from the armed robbery of the Kujla Food Mart in Chateaugay on September 5, 2007. 

Monette entered the store around midnight brandishing a silver semi-automatic pistol at a teenage store clerk.

He demanded all the money in the cash register and made off with $655.

After being found guilty on Thursday, Monette could face up to fifteen years on the robbery conviction at sentencing on June 10.

Monette, who was represented by attorney William McCallig of Malone, has been in the Franklin County Jail since his arrest.

The lead prosecutor in the case was Assistant Franklin County District Attorney Elizabeth “Molly” Crawford, who was assisted by ADA Glenn MacNeill.

-Chris Knight

PLATTSBURGH PRATT & WHITNEY FACILITY TO CLOSE

Pratt and Whitney Canada says it will close its test facility at Plattsburgh International Airport at the end of October.

A Pratt and Whitney spokesman says the 22 employees there will either be offered jobs at other company locations or be offered a severance package.

The company is relocating operations of the Plattsburgh facility and another in Quebec to Mirabel International Airport, 30 miles north of Montreal.

-AP wire reports

POLICE REPORT

Saranac Lake Police arrested a local man Wednesday after he allegedly drove drunk and crashed into a utility pole, then struggled with officers as they tried to take him into custody.  20 year-old Alec D. Benoit of Saranac Lake was charged with driving while intoxicated and second-degree obstructing governmental administration.  Police say they were called to the scene of a personal injury automobile accident on Shepard Avenue around 6:05 a.m. Wednesday.  Benoit had allegedly driven off the roadway and struck a utility pole.  Police say he allegedly became combative with officers as they were investigating the accident.  After he was treated at Adirondack Medical Center in Saranac Lake for injuries he sustained in the crash, Benoit was taken to the police station, arraigned in village court and released after posting $200 bail.

Saranac Lake Police charged 23 year-old James M. Holmes Jr. of West Chazy with failure to pay fines at 5:25 p.m. Thursday.  Police say Holmes was arrested on a bench warrant issued by village court for failing to pay $640 in fines from a previous arrest.  He was processed and arraigned but no further details were provided.

Saranac Lake Police arrested 23 year-old Gregory J. Hayward of Saranac Lake on two counts of violation of probation at 3:40 p.m. Wednesday.  Police say Hayward was arrested on two warrants for allegedly violating terms of his probation stemming from two prior arrests for petit larceny and criminal possession of a forged instrument.  He was arraigned and released to appear at a later date.

A state trooper suffered minor injuries Wednesday when his cruiser was allegedly side-swiped by a teenage driver.  State Police said it happened around 9:45 a.m. Wednesday in Elizabethtown when 17 year-old Kurri Mousseau tried to make a U-turn to park on the shoulder of the southbound lane and struck the side of the trooper’s car.  The cruiser then struck an unoccupied parked car.  The Lewis-based trooper, who was not identified, suffered minor injuries and was taken to Elizabethtown Community Hospital.  No tickets were issued although police are continuing to investigate the accident.