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Leishman Point > Waddington Economic Development Study

The number one recommendation of the Town and Village of Waddington Economic Development Study, prepared by the Merwin Rural Services Institute in 2000, and partially paid for by the village and town, was to establish a citizen’s committee for the purpose of developing a master plan.  WRA is that citizen’s committee. 

This study surveyed 72 households to get an idea of how citizens view their community and what challenges should be top priority in the formulation of the master plan.

Overwhelmingly, the results show that both residents and businesses want to see increased economic development/job creation and recognize that this would likely be accomplished through utilizing its greatest resource, Lake St. Lawrence,  to attract tourism.  It is also evident that a large majority of people want to see the Main Street revitalized.  Planned,  responsible growth which includes preservation of historic structures and open spaces were also identified as being very important.

WRA agrees with these findings and strives to meet challenges and fulfill the recommendations.

 

Waddington Residents Clearly Want and Need More Businesses – Especially Tourism Related Businesses!

a.      WRA Land Use Objectives Based on Findings

Whatever the resulting plan, WRA believes the following objectives should be used as a guide when considering development options for any surplus land, including Leishman Point.

1.      Create economic development/jobs

2.      Stabilize/reduce property taxes

3.      Enhance recreational opportunities

4.      Protect the environment

b.      WRA’s Initial Analysis of Development Options

WRA has analyzed various development proposals including:  16 lot residential subdivision, RV Park/Resort, Retirement Complex, Hotel Conference Center.

 

Sun Setting Over Leishman Point

 

View Looking East from Leishman’s

1.      Sixteen Lot Residential Subdivision

This is the only option the Town Board had considered for the past 15 years.   It is viewed as the quickest and easiest way to return some of the NYPA lands back to taxable property.  

There is no doubt that the current plan for residential development on Leishman Point  can help increase the tax base, but not significantly, and  it won’t do much to fulfill the other objectives, other than create some initial construction jobs.  Many of the 16 houses that could eventually be there will likely be filled with seasonal residents that will not contribute significantly to the local economy. The economic multiplier for residents is much less than that for businesses.

Also, it will likely take years to fully develop, based on the history at Clark Point.  There will likely be lots bought as an investment and will remain undeveloped,  thereby minimizing  any tax benefit.  Clark Point, for example, still has five undeveloped lots on the water and two are still for sale.  There are many other lots for sale in Waddington with water and sewer.  Why not concentrate on selling these before moving on.  Realtors should recognize that the surplus lands can be used to attract potential buyers to those other areas that already have the infrastructure or where there are existing houses.  It does not make sense to dispose of your drawing card to begin with.

(a)               Low Tax Impact

Our elected officials insist that the land needs to be sold to put it back on the tax roles immediately.  When they say this, many believe they will get a big property tax break, which is not going to happen.  The homeowner with an average assessment of $50,000 could save only $8 in town taxes, if the town does not increase spending.   This same homeowner would save only $34 in school and county tax, if there is not an increase in spending.  

The town of Waddington would realize less than $10,000 in extra tax revenue for 16 houses on Leishman Point.  WRA does not believe this is significant enough to warrant moving ahead without considering some of the alternatives that could make a greater impact on taxes and provide employment opportunities.

(b)               Plans to Use Proceeds from Leishman to Develop Whitehouse Bay

The town plans to take whatever cash it can earn from Leishman’s and dump it back into developing Whitehouse Bay.  Unfortunately, it is going to take $20 to $30 million to build infrastructure at Whitehouse Bay (based on a previous potential developer’s estimates).  There will be no town tax savings for anyone for a long, long time.  In fact, it would take 2,000 years for the town to generate enough tax revenue ($ 20 million estimated) to develop infrastructure at Whitehouse Bay, if only tax revenue from Leishman Point was used.   The revenue the town would realize from the sale of lots at Leishman Point will not go very far at Whitehouse Bay.  Where will the additional money come from?  The town admits they do not have a plan for Whitehouse Bay.  Perhaps a better approach would be to market the surplus lands to a private developer and let them cover the cost of the infrastructure.   A wind farm, which would produce revenues through lease agreements with developers, is a potential development option for Whitehouse Bay which would likely not cost Waddington taxpayers anything.  

(c)                 Leishman May Already be Costing Taxpayers

One could argue that the residential plan at Leishman Point has actually cost taxpayers money in the short-term, as the town has spent money on equipment in anticipation of developing the surplus lands themselves.  The town board approved a budget that is increasing taxes 37% in 2003.  That 37% is going to mean a $45 increase in town tax for homeowners with a $50,000 assessment.  This is much more than the potential benefit from a fully developed residential subdivision at Leishman Point.   Waddington would have to increase assessments by over $20 million to offset this increase in spending.  Actual assessments, based on the residential plan at Leishman Point, would be only $3 to $4 million (recent estimates, based on actual assessments of similar properties indicates this would actually be closer to $2 million) when it is fully developed, and that could take years!   The best way to reduce taxes is by reducing spending!  If the town was not worried about developing Leishman Point, they could have used some of NYPA’s initial $287,158 (only $94,000 is left) to help ease the tax burden.  However, the town knows it will have to come up with hundreds of thousands of dollars (estimates are around $400,000 and up) to build a common septic system and roads, etc. for 16 houses.  Where will that money come from?

(d)               Boundary Will Change in Oct 2003/Delay Prudent

The Federal Energy Regulatory Commission or FERC should be approving NYPA’s license for operating the St. Lawrence-FDR Power Project another 50 years this fall.   If that occurs, there will be additional lands returned along River Rd. and the boundary will change along much of the shoreline, including Leishman Point.  Currently, there is a 200 foot buffer around the perimeter.  If approved, the new license will make the boundary elevation 246 ft plus 25 feet on the northern side of Leishman’s and elevation 246 ft plus 100 feet on the southern side.  If any permanent development is delayed there will be a few more acres to build on (regardless of what it is) in another year.  Also, one would think it would be difficult for a prospective buyer to purchase a lot on speculation that the lot may get larger.  

 

Dotted Line Represents Current Boundary / Will be Moved to Red Line Pending FERC Approval

(e)                Buffer Strip Uses Uncertain on Leishman

Additionally, the uses of the remaining buffer are still unknown and will be subject to a land management plan, which has not yet been created.  Only properties with existing housing (but not all) are in areas considered ‘dense residential’ and have defined uses for the buffer strip.   All lands west of the last house on River Rd., near the beach, are not considered to be part of the dense residential area, as defined in the new license application.   There is not even a provision for any docks on Leishman Point shores.  There was a community dock approved, but that is proposed for River Rd.  One would surmise that anyone thinking about spending $100,000 for a river front (really river-view) lot would  want to know if they can install their own dock before shelling out that kind of cash.

(f)                 Future Will Require Commercial Waterfront/Clark Point is Gone

We should all realize that once houses are built, the land is gone.  Clark Point was, according to Waddington’s own LWRP, supposed to be used for a commercial purpose such as a hotel and restaurant.  This would have been the ideal spot because of its close proximity to the village.  It was also our deep water port (some cruise ships could have easily pulled in) and there don’t appear to be any objections by state agencies with regard to building a marina in nearby Sucker Brook.  However, now it’s gone and if we ever wanted to attract some cruise ships, which some companies have discussed with the St. Lawrence County Chamber of Commerce, there may not have any place for them to dock.

Some residential development along the shore is fine, but that is all Waddington currently has.  With all of the waterfront property Waddington has, almost none is commercial.  How does Waddington expect to fulfill the objectives of increased economic development through tourism, specified in its own LWRP and desired by Waddington citizens (as shown in the Merwin study) if there is no commercial waterfront property within walking distance of the village Main Street?  Leishman Point is the closest parcel Waddington has left.  If 16 houses are built out there and a better use comes along 5, 10 or 20 years from now, it would be too late!   While many hail Clark Point development as an important achievement, it could also be viewed as an example of the short-sighted planning the plagues the North Country. 

(g)               Economic Multiplier is Very Small

As mentioned previously, households have a multiplier of $0.64 versus $1.43 for tourism related businesses.

(h)               Residential Development Usually Costs More Than it Benefits

Leaders and citizens of bedroom communities don’t usually want more residential development and favor commercial development that increases the tax base more and costs less in services.

2.      RV Park / Resort

Initial findings by WRA show an RV park or resort may be the best, short-term alternative.  As more people are staying closer to home for their vacation destination and fewer are flying, the RV industry is one of the fastest growing segments of today’s economy.   It could attract thousands of visitors, over the course of a season, which would contribute significantly to our local economy.   RV sites with electricity and water could also generate, based on Lisbon Beach’s figures, a profit of over $1,000 per site for the town.  Both Lisbon Beach and the Thousand Islands Office of Parks and Historic Preservation (which operates Coles Creek State Park) have said sites with a river view, and water/electric hookups, are at capacity all summer.  Additional amenities like sewer, phone and cable TV would be in higher demand and would generate even more revenue.   If the town developed 50 sites, it would realize a profit of $50,000 to $100,000 or more (the entire amount to be raised by taxes in 2002 was  $135,306), which is five to ten times any extra revenue resulting from a fully developed residential subdivision. A fully developed residential subdivision on Leishman Point would yield less than $10,000 per year for the town.

To further put this into perspective, the assessments of a fully developed residential subdivision on Leishman Point would have to increase by $20 million to $40 million dollars to equal the revenue generated by an RV park.  A fully developed residential subdivision on Leishman Point is estimated to increase assessments by $2 to $4 million; total assessments in the town of Waddington is currently around $57 million.

In addition to the high potential for town revenue, the investment the town would be required to make would be less than that needed for the 16 lot subdivision.

A town operated RV park would also allow the public to use much of the land for recreation;  land that will be needed to attract visitors and future residents.

Also, if a better use comes along, it can easily be removed or converted into another use in the future.  For example, cabins, that supplement the need for rooms at a possible inn on the point, could be built at the same location previously occupied by RV’s.

More People are using RV’s

Excerpt from study showing electrified campsites are in very high demand

3.      Hotel / Conference Center

This is envisioned to be a replica of Ogden Mansion or Ellerslie House with accommodations for a couple of hundred people.  There would be an indoor swimming pool/spa and fitness facility that could also be used by the general public.  This facility could also be used for hospitality training.  The need will only grow as more nearby attractions come into the area, such as the aquarium, Singer Castle, casino and most recently, the proposed NASCAR track.  Additionally, people will be attracted to Waddington as the Main Street is redeveloped into a Heritage area with specialty/artisan and antiques shops.  Waddington will become the crown jewel of the county, as suggested in the Merwin Study.

A hotel on Leishman Point would attract visitors and bring in outside money that would help local businesses flourish, create jobs (on Leishman Point and at other Waddington businesses) and bring in sales tax revenue.   Additionally,  a privately owned commercial building, like a hotel,  could easily be assessed at an amount greater than the total of all 16 houses, resulting in a larger property tax benefit.

Like the RV proposal, a facility like this would not consume as much land as 16 houses.  Much of the point could then continue to be used by the general public – by high spending visitors as well as residents.

There are some people don’t think a hotel would work, but with the potential benefits, and the previous studies showing it as a good use for the land, we should take the time and investigate it more.  This idea has not even been given a chance, which may prove to be a very large mistake. Anyone following the news lately has probably heard about the Mohawks planning a hotel/convention center - they recognize the need.  Additionally, Karen St. Hilaire, the St. Lawrence County Chamber of Commerce Executive Director, has publicly stated that a hotel/conference should be considered for Leishman Point because of its central location to various current and future tourist attractions in the North Country.  Ms. St. Hilaire also points out that St. Lawrence County does not have a bonafide conference center to host events for 200-300 people.  The unique and naturally beautiful location of Leishman Point and WRA’s efforts to revitalize downtown Waddington are other factors which contribute to the potential for a hotel/conference center there.

County Chamber Letter (PDF)

What is needed is a plan that will substantially add to the tax base, increase employment, and encourages more compact development which retains open space and, in turn, attracts people to the area.

4.      Retirement Community

Such a plan might include a combination up-scale adult home facility and hotel.  A local resident came forward with this concept as a result of the public debate Waddington has been having over Leishman Point.  The adult home could house up to 120 seniors with special needs and  have the desire and means to live on the water.  A payroll of a few million dollars, from an estimated 120 employees, would be injected into the local economy and would multiplied by millions more.  A facility like this is compatible with the ‘quiet’ vision many have for Waddington.  It would also use only a portion of the 21.9 acres, leaving the public to continue to walk around the Point’s perimeter without fear of bothering the neighbors.  The tax base could increase significantly as the assessed value will likely be in the millions.  Additionally, the relatives of the people living there would likely need a place to stay. This helps make the hotel concept appear more enticing. This plan meets all of the objectives WRA has established for the surplus lands and considers it a top candidate.

These are just some of the reasons to consider alternatives to the residential development on Leishman Point.  If we take our time and plan the surplus lands right,  with the help of the Clarkson University and the insightful citizens of Waddington, we can work together to come up with a plan for all of the surplus land that benefits the greatest number of people for generations to come.

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