ATV trails put resort in tax jeopardy

David Pierce

The decision to rent property to an ATV business could cost Pocono Manor tens of thousands of dollars in additional property taxes.

Lost Trails ATV operates an all-terrain-vehicle business on a portion of Pocono Manor property, owned by Matzel Development, that enjoys municipal and school property tax breaks under Pennsylvania's Act 319. The act, also known as Clean and Green, requires the owner to maintain undeveloped land in forest or agricultural use.

The Monroe County Assessment Board believes Matzel may have violated those provisions because the ATV business added new riding trails to the pre-existing network.

"They have always maintained in their correspondence that they restricted their activities to current trails," said assessment attorney Mark Love. "We determined there were new trails created, and based on that, it was a violation."

If the assessment board prevails, Matzel would be required to pay seven years of back county, township and school property taxes on 1,400 acres at the higher regular tax rates. The properties are located just east of Interstate 380 in Pocono and Tobyhanna townships.

The four parcels would be assessed at a combined additional $391,000 for tax purposes, according to Paulette Sebring of the assessment office. The millage would be applied to the higher assessed value, meaning the payment of additional taxes.

But the president of Lost Trails, Tony Novak, says no new trails have been created since the ATV business opened two years ago.

"It's all pre-existing trails," Novak said. "It's an old surface mine quarry type of place."

Novak said the trails were used by hunters, hikers, horseback riders, ATV riders and quarry workers years before he began operating.

"People have been illegally riding ATVs) here for years before we organized it and made it safer," Novak said. "I always thought that was the purpose of Clean and Green — to enjoy the outdoors and keep it undeveloped."

Love and other assessment officials are scheduled to discuss the matter Monday with Matzel Development.

"In all fairness to them, we're giving them an opportunity to explain their position," Love said.

Love previously advised the board — following a year-plus review — that the ATV business was permitted under Act 319. But that was before assessment determined Lost Trails had expanded the trails.

Neighbors of the all-terrain business have complained repeatedly about the noise and environmental impact posed by ATV riders.

"They're scaring all the wildlife away, crossing the streams," said resident Russell Cramer. "Even though it's their property, it's impacting us."

Cramer, who attended Wednesday's assessment board meeting, said Novak did move the trails farther away from homes after residents complained to township officials.

"We're still seeing them," Cramer said. "We're still hearing them."

Novak's business also is in violation of wetland regulations for failing to obtain a permit or provide adequate erosion control for a stream crossing.

"The crossing that they installed is still in," said John Motz of the Monroe County Conservation District. "They are working towards compliance."

Lost Trails has taken interim erosion control measures to prevent silt form spilling into the stream, Motz said.

James M. Cahill, managing partner for Pocono Manor, ordered Novak to immediately shutdown the business last month, according to an Aug. 13 letter to Novak obtained by the Pocono Record.

"This decision was made as a result of the recent notice of violation issued by the Monroe County Conservation District and my conversation with John Motz at the Monroe County Conservation District," Cahill wrote. "The primary area of concern is the continued siltation of the wetlands at the crossing."

The Pocono Manor letter called for ending all ATV activity until the permit violation is rectified. But Novak says the business has continued to operate without interruption, that he is on the same page with Pocono Manor and the conservation district.

"I think that was a friendly reminder from the Pocono Manor Inn and we continue to work with the conservation district," Novak said.

Cahill didn't immediately return a call Thursday seeking comment.

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Source: http://www.poconorecord.com/apps/pbcs.dll/article?AID=/20090911/NEWS/909110376

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