In what’s viewed as an unprecedented move, Schoharie County supervisors last week committed $2 million for water and sewer lines to aid a private business.
The $2 million is part of an $7.8 million package to bring the lines from the Village of Cobleskill to Howe Caverns’ major expansion.
Although almost all involved applaud the spending, there’s some concern about using public money to support the project.
Supervisors unanimously approved the resolution after hearing county Planning Director Alicia Terry and Cobleskill Supervisor Tom Murray describe the Caverns’ expansion and water and sewer work.
Howe Caverns expects to have a zipline, ropes course, mining and gemstone building and a pavilion open this May, Ms. Terry said.
In a few years, there will be a dinosaur theater and an RV park, and after that, a dinosaur canyon, hotel and water park.
Quoting Howe Caverns’ estimates, Ms. Terry said the project will add 300 jobs, generate annually more than $750,000 in property taxes, up to $1 million more in county sales tax revenue and $147,000 in bed taxes.
Also, she said, the water and sewer lines would open the Route 7 corridor––where Lowe’s was expected to be several years ago––to greater development.
All of those positives caught the supervisors’ eye.
“We haven’t had a company in Schoharie County for a long time that government could partner with,” Ms. Terry said.
The resolution approved by supervisors that Howe Caverns is committing $2 million to the project, the Office of Community Renewal is paying $1 million, the Town of Cobleskill, $225,000 and a grant from the Economic Development Administration would provide $2.575 million.
Supervisors had to approve the resolution Tuesday in order to meet the EDA grant application deadline of Friday.
County Treasurer Bill Cherry questioned the haste in agreeing to commit public money. He noted that all the estimates are based on Howe Caverns’ figures not an independent consultant.
“I would have taken 30 or 60 days to give an independent consultant a chance to look at it,” Mr. Cherry said.
And, he added, water and sewer line projects sometimes run over budget.
“What if it’s $14 or $15 million? Are we committed to that now?” he asked.
“I’m very careful with public money. This feels rushed to me.”
There’s also a risk if the EDA doesn’t approve the $2.575 million, Mr. Cherry said.
Blenheim Supervisor Bob Mann, the supervisors’ Finance Committee chairman, agreed there’s risk to committing county money.
“I share Bill’s concern,” Mr. Mann said, adding that supervisors could “undo” the resolution very easily.
Because they could reverse the resolution, supervisors have time to do their own study, he said.
“It would be a shame to look at this in the narrow confines of today’s economy and ignore the benefits 20, 30 years down the road,” Mr. Mann said.
“We’ll go slow, ask for more details. We’re really cautious about this.”
Ms. Terry, too, agreed there’s risk.
“Is this a risk? Absolutely,” she said. “But who as a partner would you rather share that risk with than Howe Caverns?
“Howe Caverns is a natural resource. It’s not going to pick up and go to China.”
If the EDA doesn’t approve the grant, the county could seek other grants, she said.
Mr. Mann said the county could commit more money if the grant doesn’t come through.
“I’d be very nervous about that, but it could be done,” he said. “We’ve worked hard to eliminate the county’s debt.”
The plan for Howe Caverns’ $2 million is for the Town of Cobleskill to borrow the money, and the Caverns would repay Cobleskill over 20 years.
The Caverns doesn’t “have the lump sum of $2 million to put down on the table” because it’s funding the expansion, Ms. Terry said.
Asked whether Cobleskill has the resources to borrow $2 million, Mr. Murray said the town could seek a grant for the money, if necessary.