So THIS May Be Crites’ Game!

Dan, You May Have Hit on Something

By Dan Radmacher

In Miami, FL, an old stone circle that may be a relic of an ancient culture of Tequesta Indians turned up on a site that was to be used to build condominiums. The developer who had paid $8 million for the 2 ½ acre site had acquired the necessary permits to proceed with the construction.

The city of Miami is now very keen on preserving what is now known as the Miami Circle. Now the developer claims that if the property is taken from him by means of eminent domain, he will sue to be reimbursed the full $126 million which is the estimate that his construction project would cost.

So it may appear then that there is a legal precedent which automatically raises by a factor of ten or more, the valuation of a property if it is surveyed for development and the proper permits are obtained for the construction. If the Miami developer gets his price, he will have made a 1000% profit on the deal at the public expense.

My bet is that there are some folks who stay awake nights to dream of how to bilk others of their belongings, or to further their path to riches either by hook or by crook. Our materialistic society breeds ‘em. Not only that, but it rewards ‘em very nicely if they are clever about what they do. (The less clever often end up in jail or politics, take your choice.)

So here in West Virginia we have our own version of the Miami developer. John Crites may have been scheming and plotting his way to inordinate profits long before anyone had a clue that the Blackwater Canyon was in danger of being exploited. He is one of the clever ones, and if he can get his permits under the favorable climate of an administration that is clearly anti-environmental and pro helping the rich get richer, then he has it made, apparently. It is less likely that he would get these permits under a democratic governor (although the way democrats are going these days, who knows?).

Dan Radmacher’s editorial in the Charleston Gazette written way back in January seems to be more apropos now than ever to put some light into the dreams and schemes of John Crites. This article appeared on January 8, 1999. Editor.

An excellent series in the Seattle Times last fall explored the growing ranks of speculators who make millions of dollars by buying up land near national parks, forests and wilderness areas, then arranging swaps or buyouts from federal agencies - often by threatening to develop, mine or log the land.

"It’s possible to make more money threatening to dig a mine, log a forest or build a subdivision in the wilderness than in actually doing those things," wrote the Seattle Times in one of the articles. The Times gave examples to back up this thesis: Real-estate broker Tom Chapman traded 240 acres within the West Elk Wilderness for 104 acres of public land outside Telluride. The government set the value of both parcels of land at $640,000. Within a year and a half, Chapman sold the Telluride land for a cool $4.2 million - a 650 percent profit. Another speculator wanted 580 acres in the Teton range. He bought other land that he knew the U.S. Forest Service wanted and is threatening to develop it unless the government swaps him for the land he really desires. Is all of this sounding the least bit familiar?

John Crites, president of Allegheny Wood Products, bought 3,000 acres of the Blackwater Canyon, adjacent to Blackwater Falls State Park. Crites’ property includes Lindy Point, a scenic overlook featured in state tourism advertisements. Crites is logging the land and refusing to deny rumors that he plans to build condominiums along the canyon rim. Surveyor stakes, possibly marking condominium lots, have been planted. A deal, announced with much fanfare last year, swapping portions of the canyon land for other forest land has stalled, and some say Crites has pulled out, dissatisfied with the government’s appraisal of his land. In a letter to Gov. Cecil Underwood and Sen. Jay Rockefeller, Crites said his appraisal and the government's were "millions of dollars apart." How could that be, unless Crites is trying to soak the government? He paid $5 million for the entire 3,000 acres, making the 675 acres under negotiation for the swap worth, at most, $1.1 million. (Much of the land offered in the swap includes steep slopes that would be more difficult and expensive to log.) If Crites and the government are really millions of dollars apart, he must want more than $3 million for this land - or three-fifths of what he paid for the entire 3,000 acres. It sounds like Crites won’t be satisfied with less than a 200 percent profit off the taxpayers. That’s deplorable.

Edward Maguire, former state director and national vice president of the Nature Conservancy, wondered in a column published in the Sunday Gazette-Mail whether Crites is playing environmentalists like a fiddle -- threatening one of the state’s crown jewels in order to get a huge payoff from the government. In other parts of the country, they’re calling this "greenmail." Is that what Crites is up to? It certainly looks that way. I hate to see a developer profiteering at public expense, although protecting the Blackwater Canyon is certainly worth a significant investment. Unfortunately, the greed of a public utility company -- Allegheny Power, which refused a substantial $3.5 million offer from a conservation group that planned to sell the canyon to the U.S. Forest Service as funds became available -- brought us to this juncture. Allegheny Power accepted an offer of $4.85 million from another company, which turned around and sold it to Crites’ company for $5 million. Public utilities are supposed to consider public interest when selling assets.

Unfortunately, the state Supreme Court bought the corporate fiction that Allegheny Power is not itself a public utility but rather a public utility holding company.

So what to do? There are only a few options: Give in to Crites’ greenmail and give him a generous portion of public land in exchange for the Blackwater Canyon property. If the government goes this route, it should go for the entire property, rather than the difficult-to-log swatches of land proposed by Crites. I’ve heard Crites is committed to keeping Lindy Point for his family, but any deal that doesn’t include Lindy Point is totally unacceptable. Let Crites do what he will with the canyon. This also is unacceptable. Blackwater Canyon is one of the most beautiful areas in a very beautiful state. It is a popular tourist destination (or at least it was until the sound of chain saws invaded and most of Canyon Loop Road was made impassable by logging trucks). Allowing condos to line the rim of the canyon would be a tragedy. The state could exercise its power of eminent domain, pay Crites a reasonable amount for the land and make it part of Blackwater Falls State Park. This is a good option, although it’s hard to imagine Gov. Underwood leading on this issue. Congress could make the land part of the Monongahela National Forest, again paying Crites a reasonable price. Sen. Rockefeller, who has been attempting unsuccessfully to work with Crites, would have to take a tougher stand, as would the state’s other members of Congress. But this is at least a possibility.

There has been very vocal, committed opposition to Crites’ plans for Blackwater. For either of the last two options to succeed, that opposition must become more vocal and more widespread. Enough public pressure on congressional and state representatives might yet save Blackwater without granting John Crites an unconscionable and undeserved amount of profit.

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