Over the last five years, the owner of Blue Chip Farms in Wallkill has been working with the Shawangunk planning board to transform most of his acreage into a mixed-use development that he could sell to a buyer. His and the town’s consultants have been analyzing the project’s potential impact on the area and will likely have a draft environmental impact study ready by the end of November.

BCF, located at 807 Hoagerburgh Road in the hamlet of Wallkill, is a 700-acre horse breeding farm that has been operating since the late 1960s. The farm has become increasingly difficult to maintain over time due to rising costs in shipping, employment, and insurance rates. Tom Grossman, owner of BCF, sought to sell 500 acres and continue running the farm on the remaining 200 acres. After briefly searching through the market, he decided to draft a project proposal for the property to attract buyers.

“Everything has gone up sky-high, and that was before crops and diesel went up. We ship in a lot of hay, we have employment costs like everybody else, and insurance rates have tripled. Just maintaining a 55-mile long fence has become extremely expensive,” Grossman said on October 2. “Blue Chip Farms has not been economically defendable for several years. But I love the farm, and I love my group of long-term employees; we have several employees who have been here for over 20 years…but the reality is, my kids have no interest in running it, so I had to do something to control what happens to the farm next and how it’s developed.”

“From day one, my preference was to keep part of the land as a farm and sell the rest of it. That would work for me cash flow-wise, and I would have enough money to keep the smaller farm running,” he continued. “Unfortunately, when I looked around in the market and spoke with people, there were people who would buy the land outright before approvals or anything else. They weren’t the type of people that I want to be neighbors with, or that I think the town would want to own 500 acres. so then the option really became to begin developing that 500 acres, to the point where there would be a lot of buyers that don’t play in the game until there’s significant progress or full approvals.”

Grossman and Passero, a consulting firm, submitted plans for a mixed-use, resort-style development to the town planning board in 2021. The proposal comprised 120 homes, 95 cabins, 30 hotel rooms, a children’s center, a clubhouse, a golf course, a pool, a restaurant, a spa, a store, and a wellness center. The property already contains 19 wells, which should provide sufficient water for the project. Regarding sewer, the project would either utilize its own wastewater treatment plant or connect to the town’s sewer system. Grossman noted that the proposal is subject to change based on the town’s requirements and the buyers’ preferences.

“We’re deep in discussions with a few really high-end development partners, and the size of the golf in each of their plans could be 12, 18, or zero. But we’re working on 12 for now,” Grossman said on October 2. “All three of their plans, which I’ve seen, have different numbers. The numbers in the original proposal are at the maximum, and some of the plans have far less rooms or cabins.”

Following their submission, Grossman and his consultants have appeared at the town’s planning board meetings several times, including their latest appearance in September. His and the town’s consultants have conducted extensive studies to determine the project’s impact on noise, traffic, water, and other parts of the environment. Grossman and his team received the project’s scoping document in 2023, and they hope to finalize the project’s draft environmental impact study by the end of November.

“My guys are looking to have the DEIS done by the end of November, though there could be some slippage, and that’ll go to the town. They will have further comments, and we’ll have to respond to them,” Grossman said on October 2. “The town has finite amounts of time to get back to us with comments, and we’ll have to address. But we’re aiming for the draft by the end of November.”

Throughout the planning process, some residents have raised concerns about the development’s impact on the hamlet. Grossman asserted that he would like to keep the farm the way it currently is, but cannot due to financial reasons. He argued that this development would be the best-case scenario for his property, especially compared to alternative projects. Grossman assured that he and his team want to minimize the project’s impact on the surrounding area as much as possible. He is also carefully considering buyers and will choose the one who will be the best fit for the town.

“We’ve focused very hard on being minimally impactful to both the environment and community. I think there’s been some commentary about worries, which is understandable,” Grossman said on October 2. “The bottom line is that everybody, including me, would much prefer the farm to stay exactly the way it is. But it’s not economically viable, so it’s really choosing among the alternatives of what can be built here. And the alternatives that I saw from people who would buy the property outright weren’t projects that anybody, my neighbors, the town, or myself would want.”

“I don’t want to speak for them, but I think residents are realizing that this project is the best alternative,” he continued. “And I think that will increase as they see the results of what we’re doing, the more detailed studies and plans, and how we’re going to build it.”