BY JOHN RICHARDSON

MaineToday Media, Inc.

Two leading opponents of Plum Creek Timber Co.'s development plan for the Moosehead Lake region made an appeal Thursday to scrap a proposed resort and subdivision near Lily Bay State Park, even if it means allowing development on land now targeted for conservation.

Maine Audubon and the Natural Resources Council of Maine said the Lily Bay peninsula is too valuable for recreation and as wildlife habitat. And they vowed to fight the overall plan, in court if necessary, if the area isn't made off-limits to development.

"We think this is far and away the biggest stumbling block," said Brownie Carson, executive director of the Natural Resources council of Maine. Lily Bay, however, has been a centerpiece of Plum Creek's development plan since it was unveiled more than three years ago. And while the acreage of the resort has been scaled back, once by the company and once by state planners, it clearly remains a core piece of the project.

"Lily Bay is extremely important to the viability of this plan, and has been since day one," said Luke Muzzy, project manager for Plum Creek. Plum Creek's overall plan for the region calls for 975 house lots and two resorts, which could include another 1,050 hotel rooms, condos or homes.

The plan also includes more than 400,000 acres of land to be conserved through sales and easements that limit future development. The land that is the focus of the most intense opposition sits on the eastern side of the lake about 10 miles north of Greenville, and just across Lily Bay from the state park.

It is a quiet, wooded peninsula that slopes down to the lake shore. It is home to Canada lynx, a federally threatened species, and native brook trout, as well as logging roads and more than 100 camps, or rustic cottages.

Plum Creek's final proposal called for developing as much as 4,358 acres, including some shore land on Lily Bay and some of the highlands overlooking the bay and the state park. The area would include 154 house lots and a resort with 250 units, as well as a golf course, marina and other facilities.

The Maine Land Use Regulation Commission is now recommending that the Lily Bay development area be scaled back to about 1,350 acres because of the concerns about wildlife and damage to the area's recreational value. Although the commission wants the company to monitor the effects on wildlife, it is not pushing Plum Creek to reduce the number of homes or resort units.

The commission is accepting written comments on its recommended changes until July 11. A final decision on the Plum Creek plan is expected this summer or fall.

"It's not too late for Lily Bay or Maine," said Kevin Carley, executive director of Maine Audubon. "Plum Creek development does not belong on Lily Bay peninsula. That's a message that LURC has heard from hundreds of Maine people and visitors."

Carley and Carson, of the NRCM, said Plum Creek or the land use commission should eliminate development there and, in return, remove 33,500 acres on the west side of the lake from the conservation package. "The Lily Bay peninsula is far more ecologically important," Carson said.

Plum Creek will continue logging the land to the west whether or not it is part of the conservation area, but taking it out of the easement would effectively allow the company to propose development there later.

The groups clearly suggested that conserving Lily Bay would spare the company a long-drawn out battle, including possible legal appeals down the road. They also hinted at using the Endangered Species Act to save Lily Bay, if necessary.

"The Lily Bay peninsula is really a very key place for the Canada lynx," said Jody Jones, a biologist with Maine Audubon.

Muzzy, the Plum Creek project manager, said he had no direct response to the idea.

"We're so busy analyzing LURC's (recommended changes) and, really, it's their game now," he said.

The company, in fact, has not yet decided whether all the changes recommended by the state commission are feasible, according to Muzzy. "Lily Bay's a big issue. They're proposing that we reduce the acreage by somewhere in the 70 percent range, and we have to take that and do an analysis to see whether we can site the units there and make the project viable," he said.

Catherine Carroll, staff director of the Land Use Regulation Commission, said the commission's members will consider feedback, including any suggestions floated by conservation groups. But she also said members want to avoid protracted negotiations.

The debate over Lily Bay is not new, and the agency's recommendation -- move forward with scaled back development -- took those issues into account, she said. "Obviously what I'm hearing from the applicant and the parties is that Lily Bay is very important to them."