Signing
of fort lease irks Pallone
BY GLORIA STRAVELLI
Staff Writer
Critics are charging that the lease signed last week by the National Park Service (NPS) and Sandy Hook Partners, LLC amounts to yet another extension for the developer — one that can run indefinitely.
"It’s simply an extension of time," said Judith Stanley Coleman Tuesday. "He has an extension definitely until December, and then they can sit down and decide if he gets another one. Who are these great nabobs who decided when will be the next extension, and the next?
"Everything I was worried about happening can happen under this lease," she said.
The 60-year historic lease signed by the park service and James Wassel, head of Sandy Hook Partners (SHP), July 9 gives the developer until Dec. 31 — or an extended date decided solely by the park service — to demonstrate that he has secured a "commercially reasonable commitment for financing" for phase I of The Fort at Sandy Hook.
The NPS signed a letter of intent with the developer in November 2001, then extended the commitment twice for six-month terms. Wassel made the last extension June 30, submitting financial data showing commitments for $13 million in financing, less than one-third of the $75 million needed for the total project. The park service said it would not disclose details of the developer’s financing commitments until loan commitments are signed.
The NPS/SHP lease signed last week gives the NPS the right to review the commitment and requires that financing be closed so "construction funds are available" and, in combination with other funding sources, constitute all funds necessary to complete the project.
The lease also gives Wassel more time — six years in total, rather than the five originally set — to complete the rehabilitation and leasing of 36 historic buildings.
The developer has 64 months to complete the three phases of the rehabilitation and an extra year for the rehab of the Officers’ Club, the most deteriorated of the 36 buildings included in the SHP proposal.
The 72-page lease, which expires June 30, 2064, states the buildings should be leased for three principal uses: educational, general office, and conference and meeting use.
The NPS can agree to changes in the list of buildings included in each phase, "so long as the total square footage of the buildings in phases I and II are not reduced by more than 10 percent" and all of the buildings are included in the three phases.
The lease provides that the park service may assign additional buildings to the developer and gives the developer the right to transfer the lease with the approval of the park service, which, it says, can’t unreasonably withhold consent.
According to terms of the lease, phase I must be completed in 18 months and includes seven buildings: five on Officers Row, one barrack and the mule barn.
Phase II must be completed in 36 months and comprises 18 buildings including the chapel, theater, power plant, five more Officers’ Row structures and the YMCA building. The NPS will share use of the chapel and theater.
Twenty buildings are included in phase III including the Officers’ club, motor shop, officers quarters, mess halls, barracks, bakery, post exchange and gas station, and must be completed within 54 months. The developer has 66 months in which to complete rehab of the Officers’ Club.
Rehabilitation of the landmark structures must comply with federal standards for the rehabilitation of historic properties.
Another detail of the lease, which is available from the NPS, 958 parking spaces dispersed throughout the redevelopment area are allocated to the developer, 200 of those at the theater.
Following the lease signing, Rep. Frank Pallone Jr. (D-Monmouth) blasted the NPS for failing to let him see the lease agreement before signing it and said he would "oppose the final signed agreement because it begins the dangerous course of commercializing Sandy Hook."
In a statement, Pallone said the longer time frame is a signal that the developer is having trouble securing financing.
"The long time frame is a clear indication to me that Wassel is going to have a difficult time coming up with the resources to complete this project in a timely fashion," Pallone said.
Pallone is scheduled to meet with Stanley Coleman and members of Save Sandy Hook, a grassroots organization she heads that was formed to oppose the development and any commercialization of Sandy Hook, to examine options and to address the NPS’ handling of the process which, he said, was "plagued by … unwillingness to provide all information to the public."
On Friday, Pallone’s office also released the results of an investigation by the Inspector General’s Office of the Department of the Interior into complaints about the procurement process that led to the choice of Sandy Hook Partners’ proposal. The agency said it found no evidence of criminal, civil or administrative violations, and closed the investigation.
According to a release by Sandy Hook Partners, The Fort at Sandy Hook will incorporate marine/environmental science, educational, cultural arts, corporate learning and training, and hospitality programs.
In addition, it announced establishment of the Fort Foundation for the Arts and Education to provide cultural arts and education programs, and said it will seek funding in the form of grants and sponsorships.
Once renovation of the Officers’ Club is complete, it will become the home the American Military Club and Museum.