PINE HILL -- Is it a long-awaited opportunity to save the rural economy of the Catskills by restoring the glory of a bygone mountain house era?

Or a ''mega-resort'' destined to mar the mountains' rugged beauty, threaten New York City's water supply and dwarf its sleepy neighboring hamlets?

The controversy surrounding a plan to build two resorts adjacent to the state's Belleayre Mountain Ski Center in the heart of the Catskill Mountains will descend on Ulster County today.

Hundreds are expected to attend a public hearing about the environmental impact of Crossroad Ventures' plans for 1,960 acres of mountainside covered with maple, ash, beech, hemlock, birch and oak.

Developers say roughly 71 percent of their land would remain untouched. The other 573 acres of forest would be transformed by two 18-hole golf courses, two hotels with 500 rooms between them, 98 other buildings with 261 hotel and time-share units, and a 21-lot subdivision for single-family homes. Construction would take eight years.

Construction work

The resorts would employ hundreds to build and would draw many of its future workers for lower-wage jobs from surrounding towns. Fewer than 20 jobs would make more than $50,000, and those positions could be filled by people out of the region, according to the impact statement.

The Crossroads Foundation, a nonprofit philanthropy group formed by the developer, would receive one-third of all profits and already has been given $235,000 to dole out to community organizations.

Ward Todd, president of the Ulster County Chamber of Commerce and former chairman of the Legislature, said the proposal is consistent with Catskills development plans and its history. Todd also is a Shandaken resident, where 80 percent of the resort's land lies. His wife sits on the town board.

''Based on the numbers we've seen, the project will greatly benefit the economy of Ulster County,'' Todd said. ''We believe the job opportunities are important for our region.''

Environmentalists and other critics have wide-ranging criticisms of the plan. They say the proposal amounts to creating a new city that could threaten New York City's water supply and create heavy traffic on roads like Route 28 and local trails.

''We want to make sure the DEC carefully evaluates the visual impacts, and we believe they have a responsibility to carefully review those impacts and of course the impacts on adjoining wilderness areas,'' said Neil Woodworth, attorney for the Adirondack Mountain Club and the New York/New Jersey Trail Conference.

What's next: The state Department of Environmental Conservation will hear comments today about the draft environmental impact statement for the proposal at the Onteora Junior-Senior High School, 4166 Route 28, Boiceville. Sessions run from 4 to 5:30 p.m. and again at 7 p.m. Written comments will be accepted until Feb. 24.