News
Pallone Renews Call For Investigation Of Sandy Hook Lease
By John Burton
SANDY HOOK - In response to a recent decision by a federal appeals court judge upholding a controversial lease agreement between the National Park Service and a private developer Congressman Frank Pallone Jr. has renewed his call for the federal agency overseeing the agreement to move forward with an investigation into the circumstances surrounding the award of the lease.
The agreement gives a private developer, Sandy Hook Partners, the right to renovate and sublease to commercial interests a minimum of 36 buildings at Sandy Hook for office space, restaurants, lodging and education uses.
The developer has been granted numerous extensions of time to show proof of financing for the project despite a stipulation in the lease documents that the designated lessee demonstrate proof of financing in the initial lease agreement.
Pallone (D-NJ), whose congressional district includes Gateway National Recreation Area at Sandy Hook, has sent letters to the U.S. Department of the Interior, which oversees the National Park Service (NPS), urging the department to terminate the lease with Sandy Hook Partners.
In addition, Pallone last week sent a letter to Earl Devaney, Department of the Interior's inspector general, calling on Devaney to continue and conclude the investigation into the awarding of the lease, that the inspector general agreed to undertake 15 months ago.
Pallone has been a long-standing critic of the proposed agreement between the NPS and Sandy Hook Partners. The agreement would permit Sandy Hook Partners, headed by Rumson resident James Wassel, to renovate 36 of the historic former fort's approximately 100 buildings. In exchange, the development firm would be given a 60-year lease allowing the firm to sub-lease the restored structures for a variety of uses, such as for commercial endeavors like cafes and bed-and-breakfasts, conference centers, office space, as well as plans for the buildings to be used for not-for-profits and for educational uses.
The proposed public/private partnership was controversial, with some historic preservationists in favor as a means of restoring and preserving the aging and deteriorating buildings at the fort. But others opposed it, fearing what impact the development would have on Sandy Hook's ecosystem, as well as what the added traffic and impact would be to the overall area. The objectors also cited their opposition to granting the use of publicly-owned parkland, intended for recreation, for a for-profit venture.
Opponents had banded together under the banner of a group called Save Sandy Hook, which initiated a lawsuit in federal court seeking to prevent the lease from moving forward. Along with its other objections, the group alleged the NPS and the Department of the Interior violated its own ground rules in awarding the lease to an entity that failed to show it had the financial wherewithal to undertake the project.
Save Sandy Hook was unsuccessful in its legal efforts with a federal court twice dismissing the group's suit. On Sept. 26 the Third Circuit Court of Appeals ruled in favor of Sandy Hook Partners and the NPS and Department of the Interior when the court upheld the lower court ruling.
During the course of the approximately four years that the matter was making its way through the federal legal system, the NPS had granted a series of extensions to Sandy Hook Partners, arguing the ongoing legal battle was impeding the developer's ability to woo financial backers. The extensions were for six months to a year, but contained the rider that should the suit be settled or withdrawn the developer would have a 90-day period to show financial ability.
Save Sandy Hook had always countered the suit was instituted in 2004, which gave the developer four years from the time he was named as the successful bidder for the project to obtain funding.
Pallone hasn't been shy about his opposition to the NPS plan and about the lease awarded to Sandy Hook Partners. He has called the plan the "over-commercialization" of public land, and he, like the other opponents have said, he questioned the developer's ability to raise the necessary money.
In his letters dated last week, Pallone told the NPS Director Mary A. Bomar that "there are serious questions," regarding Sandy Hook Partners and Wassel's ability to raise the money. Given that, Pallone told Bonar if Wassel has not shown the financial ability in the 90-day timeframe, "I believe the lease agreement should be terminated."
And once terminated, Pallone said the NPS should cease in trying to locate private bidding for the fort buildings. Instead, the Congressman said, the National Park Service should look to state and local officials, along with not-for-profits to find an alternate means for funding to restore and preserve the historic site. Along with his notice to the NPS, Pallone is asking Devaney to continue the investigation. Devaney had agreed in July 2007 to Pallone's request to look into the process of awarding the lease to Sandy Hook Partners. Pallone in his letter said, "This entire process remains a debacle."
"My position hasn't changed," Pallone said on Wednesday. "They (NPS) should never have granted all these extensions in the first place."
"There really shouldn't be any more extensions because I think they (Sandy Hook Partners) had enough opportunity and, obviously, they haven't proven themselves," Pallone added.
In the aftermath of the federal Appeals Court decision, Wassel told The Two River Times™ the project is moving ahead and he has completed work on three of the structures and has several partners who would provide the needed equity for the project.
This week Philip Sheridan, assistant regional director for communications for the NPS in the northeast region, said, "I can't comment on letters I haven't seen."
The inspector general's office for the Department of the Interior, in Washington, D.C., by press time on Wednesday did not return calls seeking comment.
The three-month clock for Wassel to show documentation for the project financing would begin once the legal battle is officially over.
Save Sandy Hook could petition the U.S. Supreme Court to hear the matter. Save Sandy Hook would likely make its decision as to whether to continue its legal battle in the first week of November, this week said James Coleman, treasurer for the organization.
