5,800 New York acres once planned for homes are headed to public auction
A large Adirondack Park property, planned for extensive residential development, is now headed for a public foreclosure auction. This project, which promised hundreds of homes and a ski resort, faced significant legal challenges. After years of litigation and mortgage defaults, the land's ownership became entangled in foreclosure proceedings. An investor is owed millions, and the county also…
In New York's Adirondack Park, a 5,800-acre tract that was once planned to become the largest residential development in the region's history is now set for public auction. The property, located near Simond Pond and the former Big Tupper ski center, will be auctioned on September 18 at the Franklin County Courthouse in Malone, according to a report by the Times Union.
Originally, in 2012, the Adirondack Park Agency granted permits for the Adirondack Club and Resort project, which aimed to construct 600 luxury second homes, a renovated marina, a reopened ski center, and hiking trails. Preserve Associates, the developer group, successfully cleared a high regulatory bar after contentious public hearings.
However, environmental groups, Protect the Adirondacks and the Sierra Club, sued to block the project, claiming it was the greatest threat to the ecological integrity of the Adirondack Park since its establishment. Despite the lawsuit, the permits were upheld.
In 2017, Preserve Associates purchased the land for $5.2 million. However, the project faced financial struggles. Preserve Associates couldn't meet mortgage payments, and the original loan held by the Oval Wood Dish Liquidating Trust went into default. Stanley Hutton Rumbough, an investor and businessman with long-standing ties to the Tupper Lake area, stepped in and purchased the mortgage in 2019, initiating a series of legal disputes.
Despite the litigation, Rumbough continued to believe in the project and made upgrades, including purchasing the Blue Jay Campgrounds and Marina on the lake for $2.5 million.
Currently, the Tupper Lake project holds value due to its ongoing litigation, with a State Supreme Court-appointed referee determining Rumbough is owed $10.58 million, plus interest, for his investments. The auction aims to resolve the outstanding obligations and move the foreclosure process forward. Rumbough has the option to bid for the acreage himself or collaborate with other developers to revive the residential development or reopen the ski center.
The permits secured over a decade ago by Preserve Associates can also be transferred to a new buyer, allowing them to potentially build on the land.
However, the environmental concerns raised in 2012 remain unresolved, and there is uncertainty about whether a new buyer can start building immediately. The former ski center, now sold separately, has attracted new investors, Josh Parnes and Martin Schapira, who purchased the land for the former ski center in 2024.
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