Town gives approval to new 20-year agreement with ORDA
LAKE PLACID — The town of North Elba council approved a new agreement with the state Olympic Regional Development Authority following a 4-1 vote at their regular meeting Tuesday.
The agreement allows ORDA to continue operating the three venues owned by the town — the Olympic Center, the Olympic Jumping Complex and the James C. Sheffield Speed Skating Oval.
In the new agreement, which lasts 20 years with the option to renew for another 20 years, the town will continue to pay ORDA $500,000 per year. This amount will increase by 2%, which town Supervisor Derek Doty described in a previous meeting as an ”affordable rate.” The amount paid by the town has varied over the years, but since 2016 it has been $500,000. For some years, this amount was supplemented by grant funding.
The process of arriving at a new agreement has lasted longer than a year, according to Doty, who thanked council members Emily Kilburn Politi and Rick Preston for leading the effort to craft an updated agreement alongside ORDA and the town’s legal counsel.
”It took two sides talking and doing the best thing for both the public and for ORDA’s position as an authority,” he said. ”It becomes now not a legislative document to trip over but a management agreement that really makes much more sense.”
Title 28, the state law that created ORDA in 1981 included instructions for a Community Advisory Panel, a committee that was supposed to bring community feedback to ORDA. The CAP went defunct in 1998 and again in 2016. The new agreement revives an opportunity for community feedback through the Community Engagement Commission.
The CEC will consist of seven members, three of which will be appointed by the town board to represent each venue or sport. The town will also appoint one ”community member at large” and ORDA management will appoint the last three members to represent each venue. A board chair will be elected by CEC members for a two-year term and the commission will meet and report to the town board twice per year.
A document explaining the role and function of the commission can be viewed at tinyurl.com/5hcj43s9.
Council member Jason Leon was the sole member to vote against approving the new agreement with ORDA.
During Tuesday’s discussions, he commended the vision that Kilburn Politi and others have for the CEC and later added that he was happy with the agreement overall.
”My support kind of hinges on the CEC,” he said Tuesday.
In response to several public comments asking that the CEC be included more explicitly in the agreement, the council and ORDA agreed to ”strengthen” the language. The updated agreement draft included specific references to the panel and how it would function.
However, Leon was still concerned that the references to the CEC in the agreement were not binding enough. He would have liked to see a specific process or mechanism for gathering public input and collaboration codified in the text of the agreement.
”If we don’t have it codified and it isn’t binding, then whatever transpires is at the discretion of the leadership,” Leon said. ”Right now, the leadership at ORDA is fantastic, but with new leadership, new direction, new objectives, new perspectives — it may go by the wayside.”
The next step is for the ORDA board to approve the agreement, Doty said at the end of Tuesday’s meeting.
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Addressing public concerns
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Prior to voting on this agreement, the town board held two public hearings. The second was held after residents were not able to join the first hearing remotely because of an incorrect Zoom link on the public hearing notice.
The most common concern raised by members of the public was why the town is continuing to pay ORDA around $500,000 per year. Preston referenced the state Public Authorities Law 2612, section g(2) where a formula is laid out for the payments the town’s park district would make to ORDA. If this formula was followed, the town would owe ORDA much more than they currently pay.
”The number-one thing we heard was definitely ‘what do we get for $500,000? And I think (Preston) adequately explained that,” Kilburn Politi added. ”If we didn’t have ORDA here, I don’t know how we’d pay to maintain the Olympic facilities.”
It costs ORDA about $18.5 million per year to operate the three legacy venues (which includes Mount Van Hoevenberg), according to ORDA spokesperson Darcy Norfolk. This does not include larger maintenance projects, new capital projects, insurance or large events, which have a separate budget.
During the public hearings, multiple residents requested better perks — in many cases free admission to venues — for town residents who contribute to the sum of money the town pays. Preston said Tuesday that this request is a misunderstanding of what the payment is for, and has the potential to create legal issues.
”The town’s contribution should not be seen as a purchase of services, but an investment in operating and maintaining world-class Olympic facilities that drive economic and community benefits,” he said. ”Offering free passes to taxpayers could create legal and fairness concerns, as the funding is meant for public benefit, not personal perks. The payment does not entitle residents to a direct exchange of services.”
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North Elba’s benefits from ORDA
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The town council members have repeatedly said that the town receives an overall economic benefit from the partnership with ORDA.
”The contribution (of $500,000) demonstrates the town support for these venues, assuring they remain operational and benefit residents and businesses through job creation, tourism revenue and local events,” Preston said Tuesday.
There are 273 people currently employed at the Olympic Center, the Olympic Jumping Complex and Mount Van Hoevenberg. Whiteface, which is not part of the agreement, employs 403 people, according to figures provided by Norfolk. Additionally, 63 people are employed full-time in Lake Placid in corporate and executive roles that serve all venues.
Although the new agreement does not contain provisions such as free admission to facilities, ORDA does coordinate with schools and community organizations to give residents access to the authority’s facilities.
A long list of community initiatives provided by Norfolk includes school field trips to all venues and educational materials provided to local teachers by the Olympic Museum. Schools including those in Lake Placid Central School District and Keene Valley Central School District receive access to rinks and equipment for school skating programs. There are also numerous community ski programs offered at Whiteface.
ORDA has periodically done economic impact reports, with the most recent covering the 2022-2023 fiscal year. This study was done by Tourism Economics, which is affiliated with independent global advisory firm Oxford Economics.
The study found that, in the 2022-2023 year, $200.7 million of direct spending from ORDA generated $341.8 million in the local and state economy, supporting 3,414 part-time and full-time jobs and generating $25.0 million in state and local taxes. The alpine venues received the most visitors by far, but the Olympic Center and the Olympic Jumping Complex brought in over 188,000 visitors during the year of the study. These visitors spent an estimated $133.8 million per year, which includes tens of millions of dollars in each category of local transportation, retain, food, lodging and recreation.
The full economic impact report can be viewed at tinyurl.com/2uwujfd7.