For 50 years, second homeowners at a Jay Peak Resort subdivision have had access to free water, but that perk will likely be another casualty of the EB-5 scandal.
Michael Goldberg, the court-appointed Securities and Exchange Commission receiver who is running Jay Peak Resort, told 30 homeowners last week that the resort could no longer afford to maintain a water system for them at no cost.
The state says the system must be inspected because tests have shown elevated levels of manganese, a naturally occurring mineral. The cost of cleaning and repairs could be as much as $115,000, Goldberg says.
In a letter to residents, Goldberg said ownership of the water system would be transferred to a homeowners association and residents would need to pay for the maintenance themselves. He gave the residents less than two weeks to find an alternative. In an interview, Goldberg said that he wanted to put residents on notice right away because of potential public health effects, and in retrospect he said the letter was “too harsh.”
“I have no problem giving them more time, I have no problem fixing it, but they have to pay for the maintenance,” Goldberg said. “We’re not a charity where we can afford to incur costs for a bunch of second homeowners at the expense of victims, employees and contractors. We wanted them to know they have to step up and take responsibility. The days of free water, unfortunately, are over. We can’t afford to do that.”
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