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Massena town board makes a move toward sale of land to cryptocurrency miners

Posted 3/15/18

By ANDY GARDNER MASSENA — The Town Council at a Wednesday special meeting took the first step toward selling a parcel of land to a cryptocurrency mining operation, but voters will be able to weigh …

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Massena town board makes a move toward sale of land to cryptocurrency miners

Posted

By ANDY GARDNER

MASSENA — The Town Council at a Wednesday special meeting took the first step toward selling a parcel of land to a cryptocurrency mining operation, but voters will be able to weigh in if they want to.

The board passed a resolution declaring the parcel on county Route 42 as surplus. Blockchain Industries, a cryptocurrency mining firm, approached the board last month to inquire about buying, with plans to build a facility on it and possibly hire 500 people, most of whom would not be working in the mining portion.

Town attorney Eric Gustafson said the resolution is just a step towards a possible sale, but does not obligate them. He said it is subject to permissive referendum, meaning it does not have to go to a vote, but citizens could make it happen.

“If somebody wanted to oppose it, they would have to file a petition to have a vote,” Gustafson told the board, later adding that the town is legally required to get fair market value for the land.

Councilman Samuel Carbone said he is recusing himself from the discussion because it involves his employer, the New York Power Authority. Blockchain Industries are seeking NYPA subsidies because of the amount of electricity cryptocurrency requires. He did offer two thoughts on what he believes a potential deal should include.

“If the town sells any property, there should be two stipulations. If a prospective buyer backs out, there should be a way to get the property back. And there is a fund set aside for any potential cleanup if the company backs out in the future,” the councilman said.

Gustafson said the land was formerly owned by Alcoa. The town acquired it several years ago in a land swap with the company. He said DEC with their consent released the land from regulation.

“That wouldn’t be happening unless they were fairly certain the property was clean,” he said.