FALLSBURG - The Town of Fallsburg has decided to cancel a public hearing set for Monday, February 28, 2022, related to the Grandview Palace Condominiums.

Previously the town was making an effort to seize the property devastated by a fire almost 10 years ago by using eminent domain with the proposed idea to prepare the site so it could be developed through residential, municipal, and commercial projects.

However, according to the Deputy Supervisor for the Town of Fallsburg, Dr. Sean Wall-Carty, the town board has decided that it would cost the taxpayers too much in asbestos remediation and demolition to prepare the site for development along with the lack of a developer.

“Why are we gonna spend millions of taxpayers’ dollars to get something business-ready, and there’s no business even remotely interested?” said Wall-Carty.

The site was home to the famous Brown’s Hotel, which hosted a slew of celebrities and events in its heyday. As the era of large resort hotels declined in the Catskills, the resort was converted to condominiums.

Last year, when the town wanted to take over the property, some condo owners had expressed disappointment with the town’s move to use eminent domain before speaking to the former residents of the condo who were seeking restitution.

A fire broke out in the boiler room in 2012 at the Grandview Palace Condominiums that eventually ripped through many of the buildings at the site where it took over 65 fire companies to extinguish the blaze, with neighboring county fire companies coming to aid in the firefighting at the historic site.

Due to the nature of the fire, the insurance company did not compensate the residents due to technical issues. Residents still want some form of restitution for the loss of their property.
Wall-Carty also stated of the previous effort to take over the property, “Not every owner was represented” in the process.

Moreover, Wall-Carty told the Democrat, “We’re for business. But let’s do it in a way where we’re not spending $4 to $5 million and hoping that we get it. If we are going to spend $4 to $5 million, let’s make sure that we’re getting it.”

Brian Rourke, an attorney representing the residents of the Grandview, said “Although the Town’s eminent domain proceeding was initially worrisome to the Grandview’s Board of Managers, more recently it felt that the proceeding could have achieved a ‘win’ for all stakeholders. It’s disappointing to learn now, after more than two years that the property has been under the cloud of an eminent domain proceeding, that the town has apparently reversed course by terminating the proceeding. Grandview has lost valuable time and money in the process but is, nonetheless, prepared to continue to work with prospective developers to put this property back into productive use.”