It wouldn't be the first time a kid from Western Canada wasn't enthusiastic about playing in a big city in the U.S. So, seems possible to me. Total speculation, but it seems possible.That was my reaction as well. He may be overwhelmed with New York or just the Northeast U.S.
So what’s the next step?
Trade his rights?
If they can't trade his rights and don't sign him, he'll go back in the draft again.