New York City

Judge Hits Pause On Round Top’s Big-Ticket Resort Dream

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Published on May 13, 2026
Judge Hits Pause On Round Top’s Big-Ticket Resort DreamSource: Google Street View

Plans for a high-end resort at the shuttered Blackhead Mountain Lodge in the hamlet of Round Top are on ice, at least for now, after a state judge temporarily hit pause on the project. The order wipes out the Town of Cairo Planning Board’s earlier “negative declaration” under New York’s SEQRA environmental review process and stalls approvals that depended on that finding. Neighbors worried about heavier water withdrawals and bigger infrastructure demands say they are breathing a little easier, even as some residents point out the town could really use the jobs.

Judge Says Board Skipped Required ‘Hard Look’

New York State Supreme Court Justice Sharon Graff found that the Cairo Planning Board failed to take the legally required “hard look” at several key issues, including water withdrawal, water quality and energy demand, and she vacated the board’s March 2025 negative declaration. Porcupine Soup reported that the court flagged multiple unanswered questions on the project’s Environmental Assessment Form and said the board’s reliance on mitigation was, at minimum, an acknowledgment that the project could have significant impacts.

Developers’ Resort Vision Has Grown Over Time

Town planning records show an application calling for roughly 127 “Key” hotel and tourist units, a 66,270-square-foot main lodge, on-site water and wastewater treatment systems and about 280 parking spaces. Those details appear in the town’s site-plan review, while earlier press coverage described versions that included 87 cabins and a 66,000-square-foot resort and spa. Together, materials from the Town of Cairo and reporting by the Times Union show the proposal has expanded and shifted over time.

Neighbors Fear Dry Wells And Sinking Property Values

Some residents say they initially welcomed a more modest version of the project, which started out as a smaller 50-room plan, but grew alarmed as the scale increased. “If my well goes dry, my property’s got no value,” Round Top resident Stephen Petronio told CBS News. Others have argued that the judge’s ruling gives the town a badly needed chance to scrutinize the project’s potential environmental fallout in more detail.

How The Fight Landed In Court

The case reached the courthouse in April 2025, when Friends of Round Top, the Sierra Club Atlantic Chapter and the Theodore Gordon Flyfishers filed an Article 78 petition challenging the Planning Board’s negative declaration as arbitrary and capricious. According to Porcupine Soup, the court’s order not only vacated the SEQRA determination but also invalidated the Planning Board’s related site-plan approvals and special-use permits that relied on that earlier finding.

What SEQRA Requires Next

With the negative declaration tossed out, the Planning Board can no longer lean on its previous approvals without going back to the SEQRA drawing board. If it concludes the project “may” have one or more significant adverse environmental impacts, the board may have to issue a positive declaration and require a full Environmental Impact Statement. Guidance from the NYSDEC explains that a negative declaration holds up only if the agency identifies relevant areas of concern, takes the required hard look and offers a reasoned explanation, and that members of the public can turn to the courts when they think that standard has not been met. Town records show the Cairo Planning Board previously declared itself lead agency for reviewing the resort proposal.

Jobs, Tourism And A Small Town’s Identity

Locals are split on whether this project would be a boon or a blunder for Round Top. Supporters say a major resort could revive summer business and bring badly needed jobs, while critics argue that long-term damage to wells, forests and the hamlet’s laid-back character would cost more than any short-term economic jolt. “The area, the community needs jobs. We have a beautiful location, would love to share it with people,” resident Jackie Dinan told CBS News. Developers and their attorneys did not immediately respond to requests for comment, the outlet reported.