MLG drops Lisbon development
Company cites economy, regulatory delays
Town of Lisbon – MLG Development has abandoned its plans for an approximately 100-acre residential and commercial development along Highway 164 between Good Hope and Plainview Roads that had become the centerpiece of a controversy between the former town chairman and the Sanitary Sewer District.
MLG senior development coordinator David Tanner said the combination of the slow housing market and the "challenges" of gaining approval for the project from local officials prompted the company to decide not to renew options it had to purchase land on the site.
Mike Batzler, a managing partner of the B&N Development, which owns 77 acres – the largest tract of land on the site – said that parcel of land is for sale, again.
"They may come back, they may not, but I'm not waiting," he said. "We've put a 'for sale' sign on the land."
MLG's decision is significant for two reasons. The project was seen by some town officials as the first step in the commercial and residential development of about 600 acres of land between Howard Lane, north of Good Hope Road, and Plainview Road that would be served by a controversial sewer line along Highway 164.
The proposed development had also become embroiled in a controversy between former Town Chairman Michael Reed and the Sanitary Sewer District.
Reed contended that previous town officials should not have spent $640,000 to install the sewer line and agreed to pay $125,000 a year to the Village of Sussex to treat sewer from the sewer main without a commitment from a developer to share in the cost.
He convinced the Town Board to deny a request from the Sanitary District to expand its sewer service area to the 600 acres, including the proposed MLG development.
Reed insisted the Sanitary District provide the Town Board with a plan for reimbursing the town for the cost of installing the sewer line before the Town Board would approve expanding the service area.
Sanitary District officials responded that they could not provide that plan until they knew how the service area would be developed and that no land could be developed there until the Town Board approved expanding the sewer service area.
It will take a few months before newly-elected Town Chairman Matt Gehrke tries to resolve the deadlock.
Gehrke, who defeated Reed by a margin of more than 3-to1 two weeks ago, said he wants to conduct a Town Board workshop to explore all of the issues involved with developing those 600 acres, but MLG's withdrawal has eliminated any urgency about addressing those issues.
Gehrke said he doesn't oppose limiting commercial development along Highway 164 since it would be compatible with the surrounding neighborhood and would not jeopardize the rural residential character of the town.
Gehrke added that he would oppose investing town money in any future sewer lines until a developer commits to pay at least part of the cost of installing and operating the sewer utility.
Batzler said he knew the approval process for any development on the land would be challenging because it involved the Town Board, Sanitary District and Village of Sussex and that's why his company decided to sell the land rather than attempt to develop it.
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