Penn Yan Marine property deal to be sealed Feb. 26
The agreement between Yates County, the Village of Penn Yan and Keuka Outlet Development Inc., the company proposing to buy and develop the former Penn Yan Marine Property will be signed in a joint meeting at 5:30 p.m. Feb. 26 in the Penn Yan Village Hall, says Mayor Robert Church.
The agreement will result in the property being cleaned up environmentally, a 14.7 acre lot being returned to the village tax roll, and new infrastructure that will benefit others in the neighborhood.
When the final documents are signed, Yates County will transfer the property to the village and Penn Yan will immediately sell the property to Keuka Outlet Development, the Chris Iversen-owned company, for $1.164 million. Those funds, combined with loans and grants totaling $980,000, in-kind services from the village and county, and income from two revenue agreements with Yates County will pay for the infrastructure improvements that will support the development of 36 condominiums and a small marina on the site.
Iversen’s company will pay $300,000 to the village in four equal annual installments of $75,000 beginning with a payment at closing. The village will then hold a mortgage for the remaining $864,000, which will be paid in installments of $24,000 each time a condominium is sold. The village will have an option to accelerate the unpaid balance, if any, on the 10th anniversary of the agreement.
A group of county officials, Iversen, and Finger Lakes Economic Development Center CEO Steve Griffin attended the Feb. 18 Penn Yan Village Board meeting to answer any questions about the terms of the draft agreement. A handful of people attended the meeting, and few asked specific questions after Church reviewed the overall proposal.
Church says village officials have known for several years that the aging water lines on Lake Street must be replaced, and they have been hoping to pull together a plan to replace it before the State Department of Transportation resurfaces the street later this year.
Penn Yan has secured a combination of grant and loan funds totaling $980,000 for improvements to the water, street and trail projects that are connected to the development, which means the six and eight inch water line that runs along Lake Street, and feeds the town of Milo water district will be replaced with a 10 or 12 inch line capable of handing the increased needs of the neighborhood.
Church says with seven major breaks in the Lake Street line over the past few years, it’s clear the work would have to be done within the next few years.
Some of the first work village residents will see is the reconstruction of Mace Street and the extension of Hicks Street and improvements to Monnell Street. Village and County crews will work together on these projects as well as the construction of a new culvert and crossing over Kimball Gully.
The village will extend the Keuka Outlet trail 800 feet from Monnell Street towards Liberty Street. Keuka Development will build the trail across the 14.7 acre parcel, and then dedicate that portion of the trail to the village. This will result in the Keuka Outlet Trail being extended almost all the way to the lakefront.
The village also has secured s $1.235 million no interest loan for improvements to the sewer system. Church says the current system can handle the added pressure of the new hotel that will be built near the lakefront, but the system will not be able to accommodate any additional development. The village will have three years to start a project to install a new sewer line along the Outlet.
Yates County’s obligations in the agreements are primarily connected to the environmental clean up of the site, which the State Department of Environment Conservation is requiring to be complete by the end of 2015. While Keuka Outlet Development will do the work, the county is still the responsible party. Yates County Administrator Sarah Purdy says large portions of the property are not contaminated, that the DEC’s remedial clean-up plan pinpoints what specific areas need to be cleaned up. About 9200 tons of soil will be removed from the site, and buildings will be demolished because some of the contaminated soil is beneath the buildings. The site will be monitored periodically after the clean-up is done.
Iversen said the standard of the clean-up will be to meet the DEC requirements for permitting residential development over the entire 14.7 acres.
If Keuka Outlet Development fails to complete the clean-up, and/or defaults on its obligations in the agreement, the property will revert to the county, and when the county sells the property, 25 percent of the sale price will be given to the village.
If the clean-up is complete, but Keuka Outlet Development defaults, the village could take ownership of the property. “But the village can never be responsible for any clean-up,” Church stresses.