Wouldn't let me edit the previous post but....FYSA
If you look on the Susquehanna county property maps (https://susqco.maps.arcgis.com/apps/webappviewer/index.html?id=3685466c65fb4a9bb628d7d24849ff4e) that sign is on landed opened by "Moore Motors, Inc" which Google indicates was a Philadelphia Volkswagen dealer in the 60s and I can only imagine is the legacy family business of Joseph Moore (80 year old Elk mountain owner).
Someone in a post on this board from years ago speculated that part of the dispute involved him wanting to build condos and needing an access way though the village. That property map at least supports that theory. There's a plot behind the village that runs up along the east side of the mountain (certainly plausible for slopeside condos) also owned by Moore Motors. And the village property indeed would prevent the continuation of Elk mountain road to access that property. So... Doesn't confirm it but also doesn't deny it. The head scratcher... Not really sure why high end real estate up the hill would be bad for the village anyway. Rising tides and all. Particularly as a negotiation point for the reopening of perhaps deeded walk on access. But as you said.. The whole thing just makes no sense, no business sense for Elk, no sense for the VOFS owners... There just seem such obvious negotiations that could greatly benefit everyone.