February 6, 2006
Return of the grand hotel | A look at two proposed luxury resort facilities in the North Woods
By Torrey Meeks
Land use in wilderness areas is changing. In the 1990's, the conversion of forestland to developed uses reached one million acres a year, according to the USDA Forest Service publication "Forests On The Edge."
The trend is continuing, as can be seen locally in Plum Creek Timber Co.'s proposed development plan for more than 400,000 acres it owns near Moosehead Lake. But other significant projects are in the works in the towns of Brownville and Millinocket, where two of the largest resort developments in recent state history are being planned. Palm Springs, Calif.-based West Hills Golf Development plans a hotel, conference center and golf facility on a 3,900-acre parcel it owns in Brownville, while Matthew Polstein plans to expand his New England Outdoor Center in Millinocket with a new lodge, detached cabins and a conference center on 1,400 acres near Millinocket Lake. Both developers intend to cluster construction in certain areas in order to leave the majority of their property untouched, allowing for a wilderness tourism experience.
That type of development is preferable to other types of commercial land use in the Maine woods, says Lloyd Irland, lecturer and senior scientist at the Yale School of Forestry & Environmental Studies. Likewise, the "grand hotel" concept in Maine goes back to the early 1900's, says Irland, when families would pack up their steamer trunks and head to four-star operations in the woods like the New Mount Kineo House on Moosehead Lake, which was built in 1884.
A resurgence of high-class woodland recreation would be much better than low-population density sprawl such as luxury homebuyers dividing land into 10- and 20-acre parcels that become unusable for practical purposes, says Irland. "The idea of concentrating development on a small piece of land and having a big developer with a big amount of cash on the line has certain appeal," says Irland. "That way there are people with a long-term impact and presence to hold accountable."
Although the tourism business in Maine has been flat for the last three years, according to Donna Fichtner, executive director of the Greater Bangor Convention and Visitors Bureau, she says there's room for these new developments in the region. The planned resorts would be the only four-star establishments in the area, says Fichtner, and the Brownville project would be the largest in the state. The caveat, she says, is that the expansion "has to be managed and controlled. No one wants to see uncontrolled and rampant development," Fichtner says.
It's up to a mix of state and local regulators to oversee the two proposals, and both developers are expected to file permits in the next month or two. Matthew Polstein's NEOC project must be permitted through the Maine Land Use Regulation Commission, and Polstein says he's roughly a month away from submitting a preliminary re-zoning application that has to clear before building starts. The town of Brownville has already given preliminary approval to WHG's development by designating the 3,900-acre parcel as a sub-division, which exempts it from LURC oversight. According to Debbie White, Maine business representative for WHG, construction is planned to start in April once the final site plan is submitted to the town, pending the completion of a company-funded feasibility study on the resort's possible economic impact and ability to generate revenue.
To get a better feel for what these developers have planned for the North Woods, Mainebiz decided to take a closer look at each project.
Wide open spaces
Matthew Polstein's business started in the 80's with whitewater rafting trips, and it's grown ever since. After expanding into the hospitality industry with operations like the Twin Pine Camps and the Sterling Inn in the Millinocket Lake region, he purchased a 1,400-acre property abutting the Camps from the Great Northern Timber Company in 2004 and began planning an upscale resort on what is now undeveloped forest land.
The planned resort site, Hammond Ridge, looks out on two of Maine's most famous landmarks, Mt. Katahdin and Millinocket Lake, and borders Baxter State Park. With the resort area planned for just 200 acres of the 1,400 total, Polstein feels his project will be as close as any development will get to the park, due to large conservation-area holdings across the lake by The Nature Conservancy. "I feel a real responsibility to take advantage of quality accommodation," says Polstein. "But do it in a way that honors the natural beauty of the land."
The main lodge will have 60 to 80 rooms, with seven of what Polstein calls "family compounds" clustered around the lodge. Creating spin-off family units helped reduce the facility's size, says Polstein, offering visitors the best possible wilderness experience while potentially giving NEOC access to a new market. "We'll be targeting the market segment of multigenerational family units traveling together looking for aesthetic highlights," says Polstein.
All told, once the new lodge and housing units are in place, the NEOC's guest capacity ˆ including camps, inn and resort ˆ will be nearly 350, up from 240 currently. The development is still in the pre-application process with the Land Use Regulation Commission, but Polstein says he's a month away from submitting the zone change application to LURC seeking a change from unorganized territory management zones to general development, residential development and commercial industrial zones. He expects it will take roughly six months for a ruling on the re-zoning once the application is in.
He admits that the permitting process is "significant, but not daunting," and says he plans to go above and beyond LURC requirements for keeping the development in tune with the wilderness area. For example, he plans to keep construction 500-600 feet from the water, and is instituting thinning standards to preserve trees throughout the site, rather than just along the shoreline as required by LURC.
Assuming the permitting process runs smoothly, Polstein hopes to start construction in fall of this year or spring 2007. In the meantime, he's also looking for financing. Right now, Polstein is the resort's sole investor, but he recently held preliminary talks with Northampton, Mass.-based Canopy Development, a resort developer and financer that focuses on sustainable environmentally conservative construction.
Ultimately, what Polstein believes will distinguish his resort is a unique approach to amenities that combines education with entertainment. He plans activities such as wildlife watching, maple tree sugaring, snow shoeing, cross country skiing, wooden canoe building, culinary classes, forestry immersion education and outdoor photography, to name a few. "Our activities have traditionally been high adventure," says Polstein. "So our goal is to build in more soft adventure and education."
He also plans to expand the current snowmobile and hiking trail system with education and activity centers at key points along the way. But anticipating concerns about the traditional use of the land, he says there won't be any restrictions to the local community. "This parcel of land is home to two fairly significant snowmobile trails," says Polstein, "I fully appreciate the business of those trails. So those will be improved and continue to provide access to people in this area."
Polstein's willingness to allow public use of the land, along with the resort's potential to increase tourism in the region, has generated strong local support for the plan, says Millinocket Town Manager Gene Conlogue. Conlogue also cited hidden economic benefits that sometimes follow upscale resorts. "An example is MBNA," says Conologue, "[Former CEO Charles] Cawley was summering on the coast. When it came time to expand he brought the company to costal Maine because he was familiar with it, and that created local jobs."
The main concerns of the town council members revolve around the resort's potential environmental impact, according to councilman David Nelson. But they're confident in Polstein's ability to build a resort with minimal negative effect based on his good track record with the NEOC. "Something of this scale has never been done in the area before," says Nelson, "We see it as very positive."
A big statement
Weighing in at 3,985 acres with an estimated cost of $500 million, WHG Development's proposed resort, The Reserve at Norton Pond, is big. How big? Sophia Wilson, Brownville's town manager, offers some perspective: "The resort, looking at just the first phase of development, is about two times the value of the entire town of Brownville," says Wilson. (The first phase of The Reserve's construction is estimated to cost $100 million, while the town of Brownville's total tax valuation is currently $30 million.)
The resort will be situated between two of the region's well-known lakes, Schoodic and Ebeemee, and balance a traditional resort feel with luxury amenities while offering easy accessibility via plane. The goal, says WHG Development President Jim Dennehy, is to give people the ability to "leave New York, Boston, Quebec or Montreal at one in the afternoon and have a cocktail [at The Reserve] by five." Dennehy, a West Coast real estate developer with projects from golf courses to sub-divisions under his belt, is making his first foray into the East Coast market with The Reserve.
Although the resort will be large, only about 22% ˆ or 897 acres ˆ of the land is slated for use, says Debbie White, the Maine business representative for WHG Development. "Mr. Dennehy has a strong desire to make the Reserve as environmentally friendly as possible," says White. "He wants people to experience the natural beauty of the area."
Those 897 acres will feature a 550-room hotel, an 18-hole golf course, a 45,000-square-foot convention center, 20,000-square-foot clubhouse, 400 timeshare units, three free-standing restaurants and a 19,435-square-foot spa facility, according to the site plan submitted to the town of Brownville. The project is divided into two phases to accommodate all that construction: Phase one will tackle 200 timeshares and the golf course by April 2007, with the hotel and auxiliary buildings planned for phase two in 2008. WHG is considering additional construction in the future, says White, but will wait to see whether the initial project is a success.
While White said that building amenities like a golf course and an indoor theater will be important to draw vacationers, northern Maine's unique natural assets played a crucial role in Dennehy's decision to put a resort in an area not known for mass-scale tourism and travel, he says. "The major challenge in putting a resort in Brownville is creating an awareness of Maine," says Dennehy. "It's very beautiful and has a lot to offer."
To make the resort more attractive to vacationers and locals, Dennehy plans to develop a luxury train service along a track that runs into the property from Bangor. So far, he says the Montreal, Maine and Atlantic Railway company and the Downeast Scenic Railroad Trust have been interested in offering service to the resort.
The town of Brownville will oversee the permitting and construction of the project. Because the land ˆ currently undeveloped wilderness ˆ is zoned through the town as a sub-division, the project won't have to go through the LURC process, says White, though they will be working closely with the Maine Department of Environmental Protection on stormwater and pollution issues. Once company-funded feasibility studies clear in the next couple weeks, as is expected to happen, the final site plan will be submitted to the town of Brownville. Construction is planned to start in April, says White.
While Sophia Wilson says local support is strong based on potential job and economic growth ˆ WHG projects the resort would employ between 250-500 people in management, skilled and unskilled positions ˆ the town has a few concerns. "The town is a very rural community. I think everybody is looking for that rural character to survive and thrive," says Wilson. "We're also concerned about the environmental impact. The development is bordering on two very pristine water bodies, and we don't want to see those damaged."
The trend is continuing, as can be seen locally in Plum Creek Timber Co.'s proposed development plan for more than 400,000 acres it owns near Moosehead Lake. But other significant projects are in the works in the towns of Brownville and Millinocket, where two of the largest resort developments in recent state history are being planned. Palm Springs, Calif.-based West Hills Golf Development plans a hotel, conference center and golf facility on a 3,900-acre parcel it owns in Brownville, while Matthew Polstein plans to expand his New England Outdoor Center in Millinocket with a new lodge, detached cabins and a conference center on 1,400 acres near Millinocket Lake. Both developers intend to cluster construction in certain areas in order to leave the majority of their property untouched, allowing for a wilderness tourism experience.
That type of development is preferable to other types of commercial land use in the Maine woods, says Lloyd Irland, lecturer and senior scientist at the Yale School of Forestry & Environmental Studies. Likewise, the "grand hotel" concept in Maine goes back to the early 1900's, says Irland, when families would pack up their steamer trunks and head to four-star operations in the woods like the New Mount Kineo House on Moosehead Lake, which was built in 1884.
A resurgence of high-class woodland recreation would be much better than low-population density sprawl such as luxury homebuyers dividing land into 10- and 20-acre parcels that become unusable for practical purposes, says Irland. "The idea of concentrating development on a small piece of land and having a big developer with a big amount of cash on the line has certain appeal," says Irland. "That way there are people with a long-term impact and presence to hold accountable."
Although the tourism business in Maine has been flat for the last three years, according to Donna Fichtner, executive director of the Greater Bangor Convention and Visitors Bureau, she says there's room for these new developments in the region. The planned resorts would be the only four-star establishments in the area, says Fichtner, and the Brownville project would be the largest in the state. The caveat, she says, is that the expansion "has to be managed and controlled. No one wants to see uncontrolled and rampant development," Fichtner says.
It's up to a mix of state and local regulators to oversee the two proposals, and both developers are expected to file permits in the next month or two. Matthew Polstein's NEOC project must be permitted through the Maine Land Use Regulation Commission, and Polstein says he's roughly a month away from submitting a preliminary re-zoning application that has to clear before building starts. The town of Brownville has already given preliminary approval to WHG's development by designating the 3,900-acre parcel as a sub-division, which exempts it from LURC oversight. According to Debbie White, Maine business representative for WHG, construction is planned to start in April once the final site plan is submitted to the town, pending the completion of a company-funded feasibility study on the resort's possible economic impact and ability to generate revenue.
To get a better feel for what these developers have planned for the North Woods, Mainebiz decided to take a closer look at each project.
Wide open spaces
Matthew Polstein's business started in the 80's with whitewater rafting trips, and it's grown ever since. After expanding into the hospitality industry with operations like the Twin Pine Camps and the Sterling Inn in the Millinocket Lake region, he purchased a 1,400-acre property abutting the Camps from the Great Northern Timber Company in 2004 and began planning an upscale resort on what is now undeveloped forest land.
The planned resort site, Hammond Ridge, looks out on two of Maine's most famous landmarks, Mt. Katahdin and Millinocket Lake, and borders Baxter State Park. With the resort area planned for just 200 acres of the 1,400 total, Polstein feels his project will be as close as any development will get to the park, due to large conservation-area holdings across the lake by The Nature Conservancy. "I feel a real responsibility to take advantage of quality accommodation," says Polstein. "But do it in a way that honors the natural beauty of the land."
The main lodge will have 60 to 80 rooms, with seven of what Polstein calls "family compounds" clustered around the lodge. Creating spin-off family units helped reduce the facility's size, says Polstein, offering visitors the best possible wilderness experience while potentially giving NEOC access to a new market. "We'll be targeting the market segment of multigenerational family units traveling together looking for aesthetic highlights," says Polstein.
All told, once the new lodge and housing units are in place, the NEOC's guest capacity ˆ including camps, inn and resort ˆ will be nearly 350, up from 240 currently. The development is still in the pre-application process with the Land Use Regulation Commission, but Polstein says he's a month away from submitting the zone change application to LURC seeking a change from unorganized territory management zones to general development, residential development and commercial industrial zones. He expects it will take roughly six months for a ruling on the re-zoning once the application is in.
He admits that the permitting process is "significant, but not daunting," and says he plans to go above and beyond LURC requirements for keeping the development in tune with the wilderness area. For example, he plans to keep construction 500-600 feet from the water, and is instituting thinning standards to preserve trees throughout the site, rather than just along the shoreline as required by LURC.
Assuming the permitting process runs smoothly, Polstein hopes to start construction in fall of this year or spring 2007. In the meantime, he's also looking for financing. Right now, Polstein is the resort's sole investor, but he recently held preliminary talks with Northampton, Mass.-based Canopy Development, a resort developer and financer that focuses on sustainable environmentally conservative construction.
Ultimately, what Polstein believes will distinguish his resort is a unique approach to amenities that combines education with entertainment. He plans activities such as wildlife watching, maple tree sugaring, snow shoeing, cross country skiing, wooden canoe building, culinary classes, forestry immersion education and outdoor photography, to name a few. "Our activities have traditionally been high adventure," says Polstein. "So our goal is to build in more soft adventure and education."
He also plans to expand the current snowmobile and hiking trail system with education and activity centers at key points along the way. But anticipating concerns about the traditional use of the land, he says there won't be any restrictions to the local community. "This parcel of land is home to two fairly significant snowmobile trails," says Polstein, "I fully appreciate the business of those trails. So those will be improved and continue to provide access to people in this area."
Polstein's willingness to allow public use of the land, along with the resort's potential to increase tourism in the region, has generated strong local support for the plan, says Millinocket Town Manager Gene Conlogue. Conlogue also cited hidden economic benefits that sometimes follow upscale resorts. "An example is MBNA," says Conologue, "[Former CEO Charles] Cawley was summering on the coast. When it came time to expand he brought the company to costal Maine because he was familiar with it, and that created local jobs."
The main concerns of the town council members revolve around the resort's potential environmental impact, according to councilman David Nelson. But they're confident in Polstein's ability to build a resort with minimal negative effect based on his good track record with the NEOC. "Something of this scale has never been done in the area before," says Nelson, "We see it as very positive."
A big statement
Weighing in at 3,985 acres with an estimated cost of $500 million, WHG Development's proposed resort, The Reserve at Norton Pond, is big. How big? Sophia Wilson, Brownville's town manager, offers some perspective: "The resort, looking at just the first phase of development, is about two times the value of the entire town of Brownville," says Wilson. (The first phase of The Reserve's construction is estimated to cost $100 million, while the town of Brownville's total tax valuation is currently $30 million.)
The resort will be situated between two of the region's well-known lakes, Schoodic and Ebeemee, and balance a traditional resort feel with luxury amenities while offering easy accessibility via plane. The goal, says WHG Development President Jim Dennehy, is to give people the ability to "leave New York, Boston, Quebec or Montreal at one in the afternoon and have a cocktail [at The Reserve] by five." Dennehy, a West Coast real estate developer with projects from golf courses to sub-divisions under his belt, is making his first foray into the East Coast market with The Reserve.
Although the resort will be large, only about 22% ˆ or 897 acres ˆ of the land is slated for use, says Debbie White, the Maine business representative for WHG Development. "Mr. Dennehy has a strong desire to make the Reserve as environmentally friendly as possible," says White. "He wants people to experience the natural beauty of the area."
Those 897 acres will feature a 550-room hotel, an 18-hole golf course, a 45,000-square-foot convention center, 20,000-square-foot clubhouse, 400 timeshare units, three free-standing restaurants and a 19,435-square-foot spa facility, according to the site plan submitted to the town of Brownville. The project is divided into two phases to accommodate all that construction: Phase one will tackle 200 timeshares and the golf course by April 2007, with the hotel and auxiliary buildings planned for phase two in 2008. WHG is considering additional construction in the future, says White, but will wait to see whether the initial project is a success.
While White said that building amenities like a golf course and an indoor theater will be important to draw vacationers, northern Maine's unique natural assets played a crucial role in Dennehy's decision to put a resort in an area not known for mass-scale tourism and travel, he says. "The major challenge in putting a resort in Brownville is creating an awareness of Maine," says Dennehy. "It's very beautiful and has a lot to offer."
To make the resort more attractive to vacationers and locals, Dennehy plans to develop a luxury train service along a track that runs into the property from Bangor. So far, he says the Montreal, Maine and Atlantic Railway company and the Downeast Scenic Railroad Trust have been interested in offering service to the resort.
The town of Brownville will oversee the permitting and construction of the project. Because the land ˆ currently undeveloped wilderness ˆ is zoned through the town as a sub-division, the project won't have to go through the LURC process, says White, though they will be working closely with the Maine Department of Environmental Protection on stormwater and pollution issues. Once company-funded feasibility studies clear in the next couple weeks, as is expected to happen, the final site plan will be submitted to the town of Brownville. Construction is planned to start in April, says White.
While Sophia Wilson says local support is strong based on potential job and economic growth ˆ WHG projects the resort would employ between 250-500 people in management, skilled and unskilled positions ˆ the town has a few concerns. "The town is a very rural community. I think everybody is looking for that rural character to survive and thrive," says Wilson. "We're also concerned about the environmental impact. The development is bordering on two very pristine water bodies, and we don't want to see those damaged."
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