LT there are some meets, in the area... Arround the Rochester and Watkins Glen area. The group is
http://www.lotusowners.com/ There are not any Locost meets that i know of. However i will be attending the Carlisle Pa show of Kit cars, may 18-20th. There are generally a few Locosts, or atleast that is what i hear.
I "personally" would not bother with the Festiva powerplant. If i wanted a small and midengine setup i would be looking into Honda powerplants. I know that you can get a B16 engine and tranny for arround $1000. That is 1.6l and 160hp. That would move a 1000lb Locost very nicely. There is a section on here for "non triditional" locosts. I would read there if you are looking into this. There are a good amount of Auto-x within 1.5-2 hrs from you. Buffalo, Erie, Corning. There are also regions in Binghamton, Rochester. I tend to stay in Corning region (Glen as i'm the solo chairman) and i try to hit Rochester and Binghamton regions. And also WGI that i will be hitting at least once a year with the locost.
I would try to decide on which powerplant to use before you start the frame. You don't want to rebuild the frame if you change your mind on a engine. I'm going to be using the GM L67 (3800 Supercharged) and i can get the engine with arround 50K miles for arround $500! So it would not fit into a frame built for 4 cyl.
Good luck!