June 27, 2000

Mr. Phillip M. Adler
16 School Street
Rye, New York 10580

                            Re: Carmel Club at Lake McGregor

Dear Mr. Adler:

        I am writing to follow up on your telephone conversation last week with Margaret Lloyd of the New York City Department of Environmental Protection. As you know, the proposed Carmel Club at Lake McGregor is located within the watershed of the New York City water supply system. Accordingly, the project is subject to the City's watershed regulations. (Rules and Regulations for the Protection from Contamination, Degradation and Pollution of the New York City Water Supply and Its Sources, 15 RCNY Chapter 18, 10 NYCRR Part 128).

        DEP has reviewed its letter dated July 30, 1991 conditionally approving plans for a wastewater treatment plant for the project and determined that the letter is not a currently valid approval. Consequently, any wastewater treatment plant proposed for the project must comply with the requirements of DEP's current watershed regulations, including restrictions on construction of new plants within phosphorus restricted basins. In addition, DEP has concluded that the project is not "grandfathered" from compliance with the other provisions of the watershed regulations. In particular, DEP has been informed by the State Department Environmental Conservation that they have no record of a Notice of Intent having been filed for the project before May 1997 under the State general permit for stormwater discharges from construction activities. Consequently, the project must also comply with the impervious surface and stormwater requirements of the City's watershed regulations. Other provisions of the watershed regulations may also apply to the project.

        DEP would be happy to meet with you to discuss the requirements of the watershed regulations as they apply to Carmel Club at Lake McGregor. If you would like to meet with DEP, please call Ms. Lloyd at (914) 742-2033. If you have any questions, please feel free to call me at the number listed above.

c: Lloyd, Belovin