BY JEFF CHUDZINSKINorth Country This Week

MASSENA -- The town of Massena is nearing adoption of regulations related to crypto operations in the town but Town Attorney Eric Gustafson wants the county to review the proposal.

At a recent town board meeting, Gustafson told town board members it was not a prerequisite to adopting the regulations, however "out of an abundance of caution" he wanted the County Planning Board to review the proposed regulations before the town adopts them.

"This would be the first time anyone has adopted regulations for such operations, so we want to be extra certain that everything is ready before we move forward," he said.

Once adopted, the regulations would bring to an end an extensive process that has now spanned several years to get to this point.

One operation in particular, North Country Colocation Services, has sought very minor language changes that would allow them and similar operations in industrial zones to expand without the burden of excessive regulations.

North Country Colocation Services is a privately owned data mining operation that employs roughly 85 people currently, with hopes of doubling employment opportunities once an expansion project is approved and completed.

During the March and April board meetings, NCCS CEO David Fogel addressed the board and residents in attendance, informing them of his company's concerns with the regulations and delay in finalizing them.

Fogel spoke at length about the efforts the company has put forth to take care of its employees, ranging from competitive salaries, to benefits packages that are not seen in most industries.

Fogel said those benefits and future jobs are in danger, however, due to language in the proposed regulations that would place extra requirements on operations not only looking to set up shop in Massena but were hoping to expand as well.

He said the planned expansion by NCCS is no different than if Alcoa had sought to expand operations.

“There’s all these extra regulations being imposed on us for expanding that wouldn’t apply to other businesses. And, by the way, shouldn’t apply to our business because they don’t fit what we do. I think they do fit what the small operators do,” Fogel said.

Fogel said unlike other operations in the area, NCCS follows all town planning and zoning board regulations, has gone through and will continue to seek site plan approval process, follows OSHA guidelines, along with other various state and federal guidelines for employee safety.

Fogel said the operation is a professional outfit with a proving track record, a notion supported by Massena Fire Chief Patrick O'Brien and Foreman Aaron Hardy.

Both said that Fogel and NCCS have been great partners to the community that have followed all regulations and have posed zero problems to the code enforcement office and fire department.

Following Fogel's addresses and public feedback, town board members and Gustafson tweaked the language of the proposed regulations so companies like NCCS could proceed forward.

As was originally intended when the moratorium was first discussed in 2018, the language of the regulations will largely address sea box container operations and similar outfits that are not housed in a permanent structure and are not within an industrial zone.

Residents first raised concerns about other operations that were deemed an environmental and noise hazard from "amateur operators," as som residents referred to them.

Gustafson said the initial draft of the regulations is now complete, with the draft being sent to the county for their review process.

"The county Planning Board doesn’t have an approval, but they give an advisory opinion to something like this that has to do with land use regulations. So, it’s off to the county for that purpose,” he said.

Gustafson said if all goes well, town board members could potentially adopt the regulations next month. However, if even a minor change is required in the regulations, another public hearing would need to be scheduled.

“Every time there’s even a small technical change we’re going to have to conduct another public hearing before it’s adopted. So, that’s where we’re at tonight,” he said.

While the regulations are nearing the finish line, Gustafson also began walking town board members through a State Environmental Quality Review (SEQR) process, which is required after the regulations are finalized.

The town will be the lead agency in the SEQR process, which board members will begin working on and should be able to finalize by the next board meeting in June, Gustafson said.

“As a practical matter, there’s no other agencies other than the town board to deal with cryptocurrency regulations. It’s just us because the county does a review of it,” he said.

As it stands, the moratorium for crypto operations will run until Sept. 30, though Gustafson previously said that the moratorium can be lifted prior to that date once regulations are adopted.