Thomas A.

Shepardson
Partner
518.487.7663 phone
tshepardson@woh.com

June 7, 2021
Via Email
middsuper@catskill.net

Carl Patrick Davis, Supervisor

42339 State Highway 28
Margaretville, NY 12455

RE: Text Amendment to Middletown Zoning Law – “Resort” Definition

Dear Supervisor Davis and Members of the Town Board:

This firm represents Crossroads Ventures, LLC in connection with the above matter and
the Belleayre Resort at Catskill Park project (the “Project”). We would like to take this opportunity
to briefly advise, and provide additional insight to the Board, regarding the amendment of the
definition of “resort” in the Zoning Ordinance.

Our client’s March 31, 2021 letter with attachments requested the Town Board’s
consideration of a minor change in the Town’s definition of “resort” to specifically authorize
condominium form of ownership within a resort. We understand that the Town Board referred
this request to the Town Planning Board for a recommendation and that the Planning Board
indicated that the rezoning was not necessary because the R-5 zoning district allows both resorts
and condominiums as a special permit use.

We appreciate the Planning Board’s response, however we believe that the Board may have
misunderstood the critical need for the text amendment in relation to the Project. As noted in our
client’s March 31 letter, there is no market for and, therefore, no possibility that the Project will
be constructed for time-share units as currently approved. However, there is optimism that lenders
and equity investors will embrace condominiums as part of the Project. In fact, based on
preliminary discussions with potential lenders and investors, while condominiums appear to be
implicitly authorized, the investors requested that this critical issue be clarified with more
specificity regarding the permissibility of condominium use within the resort before any
commitment of the necessary funding for the Project would be provided.

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 As you know, the Project was approved by the Town as a resort development, which
technically is different from a condominium project. In other words, the condominiums would be
constructed within and as part of a resort development. The definition of “resort” is a “facility for
transient guests…” Condominium use requires ownership of units and connotes a more permanent
type of occupancy. Therefore, it is possible to construe the definition of resort as not authorizing
condominium use as part of a resort development. This technicality is a major financing issue for
the Project that our client seeks to have clarified.

The amendment would simply specifically clarify that the definition of resort, and the
ultimate development of a resort, authorizes condominium use which will give our potential
investors and lenders the needed comfort level to provide funding for the Project.

We are happy to work with the Town Board to come up with mutually acceptable language
to make the Town comfortable and, at the same time, help facilitate the Project. If, for instance,
the original text amendment language was not acceptable, different language could be considered
by the Town Board that we believe would also satisfy investors and lenders as well as the Town,
such as:

Resort - A facility for transient guests, including but not limited to condominiums, where
the primary attraction is generally recreational facilities or activities.

We would also like to make the Board aware that our client is prepared to escrow monies
with the Town for its use in paying for a legal consultant to review and provide advice to the Town
regarding the proposed amendment.

In summary, we respectfully request that the Town Board, notwithstanding the Planning
Board’s finding, continue to consider the text amendment at its June 9, 2021 meeting, and, if
acceptable, schedule a public hearing. Alternatively, we respectfully request that the Town Board
re-refer the matter to the Planning Board to reconsider its recommendation in light of this new
information contained in this letter.

Thank you for your continuing consideration of this important matter.

Very truly yours,

/s/ Thomas A. Shepardson

Thomas A. Shepardson

cc: Kenneth Pasternak

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