Feb. 22– Feb. 22–WATERTOWN — An investor abandoned his plan to build a $12 million destination hotel in the town of Pamelia, although reasons behind the decision remain unclear.

Mathias R. Shaner, chief executive officer and chairman of Shaner Investments, previously proposed to erect a 100-room hotel near Interstate 81 at 23339 Route 12, but Pamelia Town Code Enforcement Officer Walter H. VanTassel said the businessman no longer intends to pursue the project. The Town Planning Board approved the investor's site plan for the hotel in June, albeit with multiple conditions, according to a decision slip. Mr. Shaner did not return several requests for comment.

"It's a dead deal as far as I know," Mr. VanTassel said.

The investor originally established an agreement to purchase 50 acres of land from Suzanne Phillips for his hotel. The attorney representing his firm, David A. Renzi, however, wrote in an Oct. 15 letter to Mrs. Phillips' attorney that "it is my understanding the contract is null and void." Mr. Renzi did not return a request for comment.

"The town was so thrilled (about the hotel). The county was so thrilled," Mrs. Phillips said. "It's just a shame."

Town officials were told the state Department of Transportation would not allow Mr. Shaner to build an entrance off of Teal Drive or install a traffic light at Route 12 due to concerns of traffic congestion, prompting him to drop the project, Mr. VanTassel said. The firm, however, never shared its plans with the department.

"We have not received anything in the way of an application for a highway work permit, nor have we had any communication with the developer," said DOT regional spokesperson Michael R. Flick in an emailed statement.

The hotel was expected to include large rooms that could house groups, fine dining services, an indoor swimming pool, a conference room, an arcade and more. Shaner Investments, State College, Pa., planned to hire 25 to 30 full-time employees.

Mr. Shaner, a seasonal resident of Pillar Point, and his firm also considered constructing other possible facilities to coincide with its destination resort, including amusement park rides, corporate offices and national-brand restaurants.

Robert Fleming, Dexter, would have co-owned the hotel, but Mr. Fleming said he was no longer involved with the project. He declined to provide further comment.

Shaner Investments and Mrs. Phillips, Rochester, signed a contract for an eventual property sale in May, a deal she said she regrets signing due to "extensive legal bills," a lack of communication and mounting frustration.

The contract required the firm to pay a $10,000 down payment and another $10,000 fee for each 30-day extension. Mrs. Phillips said she only paid the initial down payment despite having multiple extensions.

The businessman's last communication to Mrs. Phillips and her attorney not written by Mr. Renzi was an email in August. In it, he wrote "we continue to perform the studies needed to obtain financing for the project and also the studies that we need to do to close in a appropriate way."

"It just caused problems all the way around," Mrs. Phillips said. "He just really turned out to be a shyster,"

Shaner Investments has developed two hotels in Pennsylvania and one in West Virginia, according to its website.