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AssemblyRepublican News
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FOR IMMEDIATE RELEASE:
May 3, 2004 | CONTACT:
Republican Leader Alex DeCroce/973-984-0922
Assembly Republican Office/609-292-5339
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PENNACCHIO SAYS NEWARK ARENA BONDING
SCHEME IS A COSTLY PROPOSITION
ATTEMPTING TO FLY BELOW THE RADAR BY RUSHING PROPOSAL
Assembly Republican Appropriations Officer, Joe Pennacchio, today said that Newark
arena bonding scheme is fiscally irresponsible and the Administration is attempting to rush the
proposal through the local government review board.
"The Administration has failed to make the 300 page bonding application available to the
public," said Assemblyman Pennacchio, (R-Morris/Passaic). "They are hastily pushing the
application through the review process in an attempt to avoid public scrutiny ."
Pennacchio criticized the local government finance review board for calling a special
meeting to consider an application that allows the Newark Housing Authority to issue $270
million of debt to pay for the Newark Arena.
"Newark is using this revenue to leverage an additional $270 million in taxpayer funded
debt," added Pennacchio. "A community that accepts $600 million in state subsidies should be
working to lower property taxes rather than assuming debt for a sports arena."
"Whether it be directly or indirectly, this proposal will end up costing the residents of
New Jersey," Pennacchio said, "Governor McGreevey and the Newark Housing Authority have
done little to include the public in the process."
Pennacchio noted that no official deal to relocate the New Jersey Devils to Newark has
been made.
"Until we have a firm commitment from the Devils it is inappropriate to even discuss
borrowing money to build them an arena," added Pennacchio. "What is even more
unconscionable is the fact that more than $6 million in bonds issuance costs will not be
publically bid,
"It appears pay-to-play interests are at the heart of this meeting and Governor McGreevey
is more than willing to rush the proposal through the process," Pennacchio concluded. "This
meeting should be postponed until this matter can be investigated and the public has time to fully
scrutinize the policy."
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EMERGENCY MEETING TO REVIEW NEWARK ARENA PROPOSAL IS
MOTIVATED BY PAY-TO-PLAY INTERESTS
STATE ACTION IS BEING TAKEN TOMORROW AT EMERGENCY MEETING OF LOCAL GOVERNMENT FINANCE
BOARD THAT WILL ALLOW MAYOR SHARPE JAMES AND NEWARK TO TURN OVER $412 MILLION OF CITY FUNDS
TO THE NEWARK HOUSING AUTHORITY SO THE HOUSING AUTHORITY CAN FINANCE UP TO $270 MILLION FOR A
NEWARK ARENA, NO WONDER NEWARKS' PROPERTY TAXES ARE SKYROCKETING.
GOVERNOR MCGREEVEY IS WORKING FEVERISHLY WITH THE NEWARK HOUSING AUTHORITY TO
OUICKLY AND OUXETLY SHOVEL. $412 MILLION OF PUBLIC FUNDS OVER 33 YEARS INTO A NEWARK ARENA,
PERHAPS IF M.CGREEVEY WORKED AS HARD ENABLING THESE FUNDS TO BE USED TO OFFSET PROPERTY
TAXES AS HE HAS WORKED TO WASTE IT ON AN UNNECESSARY ARENA FOR NEWARK. THE IRONBOUND
WOULDN'T BE LOOKING TO SECEDE FROM NEWARK
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THE LOCAL GOVERNMENT FINANCE BOARD (CHAIRMAN IS AN APPOINTEE OF THE GOVERNOR) HAS
CALLED A SPECIAL MEETING AT NOON ON MAY 4 TO CONSIDER AN APPLICATION THAT ALLOWS THE
NEWARK HOUSING AUTHORITY TO ISSUE $270 MILLION OF DEBT TO PAY FOR THE NEWARK ARENA. THE
DEBT WILL BE PAID OFF OVER THE NEXT 33 YEARS WITH $412 MILLION OF PORT AUTHORITY LEASE
PAYMENTS BEING TURNED OVER BY NEWARK TO ITS HOUSING AUTHORITY.
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THE APPLICATION SUBMITTED TO THE LOCAL FINANCE BOARD BY THE NEWARK HOUSING AUTHORITY
IS 3100 PAGES LONG AND WAS DELIVERED TO THE LOCAL FINANCE BOARD MEMBERS ONLY A PEW DAYS
AGO. THE MEMBERS HAVE NOT HAD TIME TO CAREFULLY REVIEW THIS IMPORTANT APPLICATION.
- NO MEANINGFUL OPPORTUNITY FOR PUBLIC INVOLVEMENT IS POSSIBLE BECAUSE OF THE LATE NOTICE
OF THE MEETING, THE LACK OF PUBLIC ACCESS TO THE APPLICATION, AND THE MEETING BEING HELD
WHEN MOST PEOPLE ARE WORKING.
- THE APPLICATION IS INCOMPLETE BECAUSE IT DOES NOT CONTAIN A RESOLUTION OF THE NEWARK
HOUSING AUTHORITY REQUIRED TO AUTHORIZE THE TRANSACTION.
THE RUSH TO ALLOW THE NEWARK HOUSING AUTHORITY TO ISSUE $270 MILLION OF DEBT IS
COMPLETELY UNNECESSARY,
- THERE ARE ORDINARLY SCHEDULED MONTHLY MEETINGS OF THE LOCAL FINANCE BOARD.
- THERE IS NO DEAL FOR THE DEVILS TO MOVE TO NEWARK, SO THE MEETING TO APPROVE BORROWING
$270 MILLION TO BUILD THE DEVILS AN ARENA IS ESPECIALLY OUTRAGEOUS,
THE REAL REASON FOR THE RUSHED MEETING COULD BE BECAUSE PAY TO PLAY INTERESTS AND/OR
£ONNEGTED DEMOCRATS ARE PUSHING IT:
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THE COST OF ISSUANCE OF THE BONDS WILL EXCEED $6 MILLION AND WILL GO TO ATTORNEYS,
BANKERS, FINANCIAL ADVISORS, AND OTHER PAY-TO-PLAY INTERESTS.
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NONE OF THESE INTERESTS WERE SELECTED BY PUBLIC BID.
CALL MCGREEVEY AT (609) 293.6000 AND TELL HIM TO ORDER HIS LOCAL FINANCE BOARD TO
RESC$EDU:LE THE MEETING TO ALLOW APPROPRIATE TIME FOR. CONSIDERATION OF THE APPLICATION
BY THE MEMBERS AND TO ALLOW AN OPPORTUNITY FOR THE PUBLIC TO PARTICIPATE IN THE MEETING.
URGE HIM TO SPEND TIME ALLOWING THE PORT AUTHORITY PAYMENTS TO BE USED FOR PROPERTY TAX
RELIEF INSTEAD OF AN ARENA,
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