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Booker
hires an arena consultant Former Codey chief counsel to review the details
of Newark's deal with the Devils
(As
appeared in the Newark Star Ledger, July 25, 2006)
Newark Mayor
Cory Booker has hired the attorney who was former Gov. Richard Codey's top
lawyer to evaluate the city's deal for a downtown arena.
Paul Fader,
who as chief counsel to Codey led the negotiations with the Giants and Jets
that led to a deal for a new football stadium in the Meadowlands, said
yesterday the Booker administration has given him a mandate to take a second
look at the entire transaction for the $350 million arena.
Less than a
month on the job, Booker has threatened to back out of the deal, which calls
for the city to contribute $210 million toward a new home for hockey's Devils.
While the mayor has said little about the deal since taking office July 1, in
hiring Fader he has made it clear he remains unsatisfied with a project his
predecessor, Sharpe James, viewed as a legacy of 20 years in office.
"I've been asked to review the transactions and report to my client
with respect to that," Fader, a top contributor to Booker's campaign, said
yesterday. "Any decision about actions will be made by the city."
The
city will pay Fader $175 per hour for his work on the arena. He has been given
no time frame.
During Booker's recent mayoral campaign, Fader raised
and contributed $10,000 on behalf of a group called Friends of Paul T. Fader,
according to reports filed with the state's Election Law Enforcement
Commission.
Desiree Peterkin-Bell, a spokeswoman for the mayor, said
Fader's support for the Booker campaign had no bearing on his hiring.
"What it says is this deal needs to be revisited," Peterkin-Bell said.
"Based on everything that had been negotiated previously, this needs to be
revisited overall, completely.
Peterkin-Bell said Booker has no
immediate plans to order a stop to the work on the arena but is not ruling it
out in the future.
"We're not making any rash decisions," she said.
"But it's not until you dig deeper that you get a sense of what vagaries
exist."
Devils principal owner Jeff Vanderbeek said he has no problem
with Booker's action. "I would have done the exact same thing," Vanderbeek
said. "He is the mayor of the largest city in New Jersey and this is the most
high-profile project. He should take a close look at it."
Richard
Monteilh, who negotiated the arena deal as business administrator for James,
said Fader understands complicated sports facility projects and should help
Booker understand the value of the agreement.
"Hopefully, he can get
them on the other side of the negotiating table with us supporting the
project," said Monteilh, who is in charge of the city's Downtown Core
Redevelopment Corp., an agency overseeing development of the arena and
downtown.
Fader's review will take place at a crucial time for the
project at Broad and Lafayette streets, where the steel shell of the structure
grows by the day. The Devils started construction last year and have had the
project on a fast track because they want to begin playing there in the fall of
2007.
The aggressive schedule forced the Devils to begin construction
before finalizing the design of the arena or receiving a raft of permits they
need to complete the project, including all permits for the interior of the
building. Construction experts said that is not uncommon on such a large
project, but keeping the arena on schedule will require the full commitment of
the city, which could cause delays by dragging its feet on the approvals.
"The Devils have building permits for foundations and footing and for
their structural steel, but nothing else," said Neil Mitgard, a Newark
construction code official. "They can't do work on anything else besides those
areas."
Mitgard said the Devils attempted to press ahead last month
with preliminary work on the arena's plumbing system. But when the city learned
of the activity, it ordered the team to stop the work.
Vanderbeek said
the plumbing work was the result of an error in paperwork that is now being
fixed. He added that he expected no additional problems. "The city is doing its
job and everything is moving along," he said.
Monteilh, who has worked
closely with Vanderbeek for three years, said, "I don't see any problems with
permits going forward, but these are complicated projects."
Codey said
Fader will be able to "understand the skinny from both sides, the taxpayers'
side and the owner's side. He'll know what works and what doesn't."
The
Devils' lease for the arena calls for the city to receive $2 million a year in
rent from the team; 7 percent of all luxury suite sales, concession sales,
general advertising revenue and naming rights; and 4 percent of all gross
revenues from other events.
Booker has made two other moves aimed at
exerting more control over the arena through the Downtown Core Redevelopment
Corp.
At last week's meeting of the redevelopment agency, the board
voted to require a second signature for all checks for more than $500. Newark
council members Carlos Gonzalez and Augusto Amador, both Booker allies, are the
newest additions to the agency's board, and Gonzalez will have to sign all
checks exceeding $500.
In addition, the board voted to hire the firm of
Rosenfarb Winters to perform an audit of the agency.
"We are going to
see how the money has been dispersed. We don't know if we should be concerned,"
Gonzalez said. Back
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