The proposal is dead to have a Lewis County agency buy the former Lyons Falls Pulp & Paper for conversion into a business park.
Thursday morning the Lewis County Local Development Corporation voted to drop out of the deal.
The LDC has had an option to buy the property since August, 2008.
LDC member Rick Lucas said there were too many unknowns surrounding the property, the costs to clean it up and develop it, and the availability of grants to fund the project.
The LDC's action comes after a scathing letter written it March 17th by the property's owner, Michael Johnson, of Carthage.
In the letter, Johnson accused the LDC of wasting his time and resources, as well as those of the taxpayers of Lewis County. He said he reserves his right to bring legal action against the LDC.
Johnson accused the LDC of playing dumb about asbestos and structural issues that LDC officials claimed had surfaced only recently.
"Upon your request our agreement shall expire in the requested ten days, or on March 27, 2009. GAME OVER...." Johnson wrote.
Johnson was responding to a letter from LDC attorney Ray Meier. Meier had written Johnson that because so many property liabilities had surfaced, the LDC could pay him only $10,000, already on deposit with Johnson.
Johnson would have to be happy with the $10,000 plus any tax benefits he might accrue from the deal, Meier wrote.
"Otherwise, our board has instructed me to withdraw from the agreement," Meier wrote.
Johnson responded that he is returning the LDC's $10,000 deposit "out of sympathy for the taxpayers of Lewis County."
Lucas said he still hopes the property gets cleaned up one way or another.
"Right now it's not in the cards," Lucas said.
In September, county legislators had appropriated $100,000 to the LDC to be used for "soft costs" associated with the project.
