Luxury resort plan on hold in a small Catskills town that needs jobs. Here's why residents are relieved.

A plan to bring a large luxury resort to a small Catskills town is temporarily on hold. 

Residents argued the environmental review was inadequate, and a judge agreed. 

Abandoned resorts outnumber those still operating in the Catskills. In Greene County's Cairo, many would like to see some of that business return. 

"It would certainly help the economy up here, for sure," resident Ray Leonardo said. 

Blackhead Mountain Lodge in the Hamlet of Round Top was one of Cairo's bustling resorts during the 1970s. It closed in 2022, and was sold to developer RCBG. 

"The developer first submitted plans for a 50-room hotel, keeping the pool, keeping the golf course. Everybody was thrilled," Jackie Dinan said. 

Dinan said the thrill quickly was gone when RCBG revised its plans, proposing a luxury condo-hotel resort, with a big main lodge, dozens of new buildings with a total of 264 bedrooms, along with multiple pools and restaurants. Residents worried the resort would threaten the underground water supply. 

"Once it gets pumping at the level they're proposing, which I believe they're underestimating, you know, if my well goes dry, my property's got no value," resident Stephen Petronio said. 

A judge ruled the local planning board failed to take the required hard look at water supply and other concerns. 

The developer and attorney have not answered CBS News New York's requests for comment. 

Residents are relieved the project is on hold for now, and further environmental review is likely. 

"The area, the community needs jobs. We have a beautiful location, would love to share it with people. We just want it done in a thoughtful, smart way," Dinan said.