News
Next Week Ends NPS Review Period Of Sandy Hook Financials
By John Burton
SANDY HOOK - The National Park Service is expected to complete its review of financial information submitted by the designated developer of The Fort At Sandy Hook by early next week.
That deadline coincides with the end of the latest NPS extension granted to Sandy Hook Partners, a commercial development group led by Rumson resident James S. Wassel, to prove that they have the financial capability to proceed with the project.
According to Brian Feeney, a spokesman for the National Parks Service's Northeast Region, Monday will mark the end of the 90-day review period for the financial documentation submitted in support of a plan by SHP to renovate and lease out 36 deteriorating buildings that once housed military facilities at Fort Hancock. The defunct military base is situated at the northern tip of Sandy Hook, which is part of Gateway National Recreation Area.
NPS officials have said in the past that the series of extensions granted to the developer over the years were necessary because a lawsuit filed by a group opposing the development of the federal parkland was hampering the developer's ability to obtain financing.
Save Sandy Hook (SHS), the grassroots organization that fought the proposal in court, lost an appeal last fall and decided not to proceed further with their litigation.
The NPS selected Sandy Hook Partners in 2000 as its choice to restore the deteriorating buildings for commercial and nonprofit use without using taxpayer money. The NPS and SHP formalized the agreement in 2004, granting SHP a 60-year lease on the buildings to be renovated.
Also in 2004, Save Sandy Hook, began its legal battle with the federal government to prevent the redevelopment from moving forward. The group questioned the legality of the lease in light of the fact that the developer had not complied with federal regulations requiring them to prove that they had the financial capability to fund the project.
Members of SSH also worried about the impact of development on the sensitive ecology of the area and opposed the use of public land for a commercial development.
The group charged that the NPS violated its own rules, and federal statutes pertaining to awarding government contracts, by not insisting that Sandy Hook Partners provide documentation detailing the firm's ability to finance the project.
In December, Save Sandy Hook, having lost three rounds in federal court, decided to drop the suit - though not their opposition to the plan.
The most recent extension issued last June granted SHP an additional year, or 90 days following the end of legal proceedings, to show financial capability.
Sandy Hook Partners submitted its financial plan to the NPS on March 24 - one day shy of the deadline, and the park service then had 90 days from that point to have an independent auditing firm evaluate the plan and render its findings.
Pallone (D-NJ), whose congressional district includes Sandy Hook, has long argued against the proposal, labeling it a "commercialization" of public property. Pallone has also criticized the NPS for granting numerous extensions of time to provide financial information rather than voiding the contract.
Pallone outlined his criticisms again last week in a letter to NPS Acting Director Dan Wenk, stressing that this process has been going on for nearly a decade.
"There are serious questions regarding Mr. Wassel's ability to produce the necessary funds to move forward with the three phase project," Pallone's letter stated. "Those fears have been realized over the last four years as NPS has granted Mr. Wassel repeated lease extensions due to SHP's [Sandy Hook Partners'] lack of financial resources."
If the developer, "has submitted insufficient proof of financing," Pallone's letter went on to say, "NPS should immediately begin the process of terminating the lease."
After the auditor report is submitted to NPS, "We have to see what went on with the back and forth," NPS spokesman Feeney noted, referring to the ongoing communication that goes on between government officials and the lessee, "to discuss any points that have come up."
Pallone this week expressed frustration with this nearly 10-year process. "This is getting ridiculously close to the deadline," he said. "My fear is they're going to look for another extension."
Pallone said the NPS denied his request to see the financial documentation, adding, "We have not heard definitely from the park service that they [Sandy Hook Partners] have met the proof."
The NPS has refused to make public that information, citing proprietary concerns on behalf of the developer.
If the plan falls short, the congressman stressed, "I've told them no more extensions."
The deadline is scheduled for close of business on Monday, and the findings should be made public sometime shortly following that period, according to Feeney.
