Pallone Requests Update on Fort Hancock Lease Agreement with Sandy Hook Partners

Washington, D.C. --- U.S. Rep. Frank Pallone Jr., sent the following letter to the National Park Service on Friday requesting a detailed update on the status of the lease agreement between Sandy Hook Partners (SHP) and Fort Hancock at the Gateway National Recreation Area's Sandy Hook Unit. The letter asks several questions regarding adequate proof of funds and the possible termination of the lease.

The letter also requests that NPS provide a full briefing on the implementation of the August 13, 2008 Management Advisory issued by the Interior Department's Office of Inspector General pertaining to establishing better policy and procedure for administering the NPS leasing program.

Additionally, Pallone sent a letter to the Inspector Generals' office urging the immediate release of all relevant information related to an investigation of the lease agreement between SHP and the NPS. The New Jersey congressman believes the lease should be terminated if SHP owner James Wassel can not provide adequate proof of financing for the redevelopment project.

June 19, 2009

Mr. Dan Wenk, Acting Director

National Park Service

1849 C Street NW

Washington, DC 20240

Dear Acting Director Wenk:

I am writing to request that the National Park Service (NPS) provide a detailed update on the status of the lease agreement with Sandy Hook Partners (SHP) to continue the redevelopment of Fort Hancock at the Gateway National Recreation Area's Sandy Hook Unit. I would also like NPS to provide a full briefing on the implementation of the August 13, 2008 Management Advisory issued by the Interior Department's Office of Inspector General pertaining to establishing better policy and procedure for administering the NPS leasing program.

Under the terms of the lease, SHP, which is owned by Mr. James Wassel, agreed to renovate 36 of Fort Hancock's 100 buildings. There are serious questions regarding Mr. Wassel's ability to produce the necessary funds to move forward with the three phase project. Those fears have been realized over the last four years as NPS has granted Mr. Wassel repeated lease extensions due to SHP's lack of financial resources.

As you know, on September 26, 2008, the Third Circuit Court ruled in favor of the lease granted to Sandy Hook Partners. I did not support this ruling. After the Court’s decision, the National Park Service decided to give Sandy Hook Partners 90 days to come up with the funds for the proposed renovation projects. SHP submitted their proof of financing documents in late March.

If Mr. James Wassel, owner of Sandy Hook Partners, has submitted insufficient proof of financing, NPS should immediately begin the process of terminating the lease.

I have some specific questions that I would like your staff to answer as soon as possible. First, did SHP provide adequate proof of financing? If not, what were the deficiencies and has the NPS notified SHP that it is in violation of the current lease? Finally, when will the NPS begin process of terminating the lease?

Furthermore, at my request, the Interior Department's Office of Inspector General investigated the lease agreement. As a result of that investigation, the IG issued a Management Advisory to NPS, suggesting that, at a minimum, the following recommendations be considered to improve the leasing program:

• Establish general procedures to be followed by a request for proposal evaluation panel when reviewing and recommending an entity for lease negotiations;
• Develop standardized documentation for evaluation panels that provides consistency and transparency of the panel's evaluation process and final recommendation. Ensure the retention of this documentation within the administrative file;
• Provide documented guidance to the evaluation panel, which clearly defines NPS' priorities and assigns a weighted value to each selection criteria; and
• Establish consistent financial requirements on prospective lessees.

I would also ask that your staff provide a full update on what NPS has done to implement the Management Advisory.

Please contact Tim Del Monico in my office at 202-225-4671 to set up a detailed briefing on the status of the lease agreement with SHP and the implementation of the Management Advisory. I appreciate your prompt attention to this matter.

Sincerely,

FRANK PALLONE, JR.

Member of Congress

CC: Barry Sullivan, Superintendant, Gateway National Recreation Area

David Avrin, Superintendant, Gateway National Recreation Area, Sandy Hook Unit