A packed Town of Thompson meeting room heard competing views on Tuesday, August 4, 2026, over proposed tax-exempt bond financing connected to Camp Iroquois Springs in Rock Hill.
Congregation Machna Shalva are seeking up to $15 million in qualified 501(c)(3) bonds through the Public Finance Authority, an agency organized under Wisconsin law.
The authority would issue the bonds and loan the proceeds to the camp organizations, which would be responsible for repayment. According to the public notice, the bonds would not be a debt or liability of the Town of Thompson.
In a search of public records, the Democrat found one New York nonprofit system that had used the Wisconsin authority. Dormitory Authority of the State of New York records show Wisconsin Public Finance Authority bonds were used in 2022 to refinance approximately $9.5 million in Touro College debt and approximately $44.4 million in New York Medical College debt.
That financing paid off existing debt and was not the same as the proposed Rock Hill transaction.
Before the proposed sale, Iroquois Springs operated as a traditional coed overnight summer camp. According to its website, the camp was founded in 1931 and served about 225 boys and 225 girls, along with approximately 250 staff members, on nearly 200 acres.
Town Supervisor Scott Mace told the crowd, which filled the Town Hall courtroom and overflowed into the lobby, that the hearing was not about approving the sale or deciding whether proposed buildings could be constructed.
“It’s about deciding if it is a community benefit,” Mace said.
Attorney Martin Miller, representing the camp, said the money needed to purchase the property was already being held by an escrow agent and that the acquisition was essentially complete.
“None of the money that we’re speaking about tonight is required for the purchase,” Miller said. “The purchase is a done deal.”
Miller said the bond money would instead help pay for development and improvements. He also said approval of the financing would not approve any particular construction plan. Proposed buildings and other changes would still require review by the Thompson Planning Board and other local and state agencies.
The public hearing notice, however, states that the bond proceeds may be used to finance the acquisition of Camp Iroquois Springs, along with interest and costs connected to issuing the bonds.
Mace spoke to the Democrat after the meeting and said he did not know how to explain the difference between the notice and Miller’s statements.
“I heard a couple of different things,” Mace said. “I don’t think we got the full story.”
When asked whether he was certain about how the bond money would be used, Mace said he was not.
“Marty keeps telling me he doesn’t know the details of the sale,” Mace said.
Mace also questioned the difference between the proposed $15 million bond issue and approximately $8 million in improvements described in paperwork provided by the camp.
“If they’re spending $8 million the next two years, then why do they need a bond of $15 million?” Mace said. “So it’s gotta be financing the acquisition of the property to some extent.”
Mace said requiring a detailed breakdown of how the bond proceeds would be used was not under the Town Board’s authority. He said the board was not acting on the sale and was focused on whether the proposal provides a community benefit.
Mace said a lower interest rate may be one reason the applicants chose tax-exempt financing. He estimated that the rate could be approximately three percentage points lower than ordinary financing, potentially saving millions of dollars over the life of the loan.
Council Member Melinda Meddaugh said before the public hearing started that community benefit involves more than money being spent locally.
“We’re deciding if this is a significant public benefit,” Meddaugh said. “Significant public benefit is not just economic.”
She said the board should also consider environmental effects, public infrastructure, public use of the property and whether the project fits with the town’s comprehensive plan.
Camp plans
According to paperwork provided by the camp, Machna Shalva plans to operate a boys’ summer yeshiva that could eventually serve approximately 600 students.
The documents say the first year of work would include new staff and classroom buildings, study areas and renovations to existing camper cabins. Two buildings near the pool would be demolished and replaced with a mikvah building.
Proposed second-year work includes a new shul, another classroom building and another staff building.
The paperwork estimates the first year of improvements at approximately $3.93 million and the second year at approximately $3.9 million. The camp placed the total investment at no less than $8 million because of rising labor and material costs.
A letter included in the paperwork from All Country Services, a contractor expected to work on the project, said the work could support approximately 30 year-round jobs. It also listed Sullivan County businesses that could be used for lumber, concrete, electrical, plumbing and equipment work.
Those employment and local spending estimates were provided by the camp and contractor and have not been independently confirmed.
Public benefit questioned
Several speakers said they did not oppose the sale or the religious identity of the buyer but opposed the proposed bond financing.
Residents questioned why a Wisconsin authority was being used instead of a New York issuer. They also asked whether the promised use of local contractors would be guaranteed and whether the construction spending would offset the possible loss of property-tax revenue.
The Lake Communities Alliance of Rock Hill estimated that the property could remove approximately $110,000 from the tax rolls if it receives a property-tax exemption. That figure has not been confirmed through town assessment records.
Sean Rieber, a former longtime member of the Sullivan County Industrial Development Agency, said the previous camp owner financed improvements through camp revenue, private investment or ordinary bank financing.
“We’re being offered and promised $8 million in improvements,” Rieber said.
He questioned whether those improvements provided enough public benefit to offset the loss of a six-figure taxpayer.
“Every dollar not paid in taxes is made up by somebody else,” Rieber said.
Rieber also said he supported a proposed tunnel beneath Bowers Road that would allow children to move safely between sections of the camp.
Legal cases cited
Attorney Steven Barshov, also representing the camp, said the term tax-exempt bonds refers to the tax treatment of interest received by bond purchasers. He said that was separate from whether the property receives an exemption from local property taxes.
Barshov also cited previous court cases involving religious schools and local land-use decisions.
He raised the Religious Land Use and Institutionalized Persons Act, known as RLUIPA, and argued that a religious educational use should not be treated less favorably than a similar secular camp.
Rieber and others in the crowd said Barshov’s references to lawsuits sounded like a threat of legal action.
Barshov did not directly threaten to sue Thompson during the hearing. However, during a 2025 Town of Fallsburg zoning hearing, Barshov threatened possible RLUIPA litigation if officials did not adopt proposed zoning amendments, according to a previous Democrat report.
Paperwork provided by the camp included U.S. Department of Justice material stating that religious institutions are not automatically exempt from zoning rules and may still be subject to neutral requirements involving traffic, parking, noise and septic systems.
The Town Board took no vote and extended the public comment period for 14 days. Any construction, environmental review or expansion would be considered separately through the planning process.