***MULTIMEDIA PACKAGE*** Schaer & Scalera on Enactment of Bill to Protect Taxpayers Against Another EnCap

***MULTIMEDIA PACKAGE***

SCHAER & SCALERA ON ENACTMENT OF BILL TO PROTECT TAXPAYERS AGAINST ANOTHER ENCAP

New Law Enhances Protections, Oversight in Public/Private Redevelopment Projects

(NORTH ARLINGTON) - Assemblymen Gary S. Schaer and Fred Scalera today issued a multimedia package on their legislation to enhance the protections and oversight surrounding public investments in private redevelopment projects.

Schaer and Scalera (both D-Bergen/Essex/Passaic) sponsored the new law (A-2650) following the collapse of the EnCap Mixed-Use Redevelopment Project, which squandered more than $300 million in public money from the state and Bergen County in an attempt to transform abandoned municipal landfills in the Meadowlands into golf courses and luxury housing.

The measure was signed into law by Gov. Jon S. Corzine during a public ceremony Monday in North Arlington, one of three Bergen County municipalities most seriously affected by the EnCap collapse and the first town to call for an investigation into the now-defunct project.

Under the law, businesses receiving financial assistance in excess of $50 million from single or multiple public entities to help fund a redevelopment or environmental remediation project must file annual, independently audited financial statements with the state Treasurer and each public entity from which the business has secured financing.

The law further stipulates the following for any qualifying contract:

• The private business spends a minimum of $1 for every $5 received in public funds;
• The public entity reserves 10 percent of the total funds approved, to be disbursed upon the successful completion of the project; and
• The private business submits payment of a performance bond, the amount of which will be tied to the project costs attributable to the publically funded improvements.

The multimedia package consists of a video press release of the bill signing, audio of same and a transcript of comments from Schaer and Scalera.

The video can be accessed directly via our Web site - www.assemblydems.com - or by clicking here.

The audio file is available upon request.

A transcript of comments from the sponsors is appended below:

Assemblyman Gary S. Schaer (D-Bergen/Essex/Passaic):

"I must tell you that, having worked on this bill for weeks and months and years, somehow seeing it all come to fruition in one small moment is a remarkable thing."

Assemblyman Fred Scalera (D-Bergen/Essex/Passaic):

"We found out about property not being cleaned up.  We found out about not proper follow-up.  We saw the problems occurring, and the writing was on the wall."

Schaer:

"This bill will create a centralized agency to oversee exactly what goes on when the state's dollars or any municipal or county dollars are involved."

Scalera:

"For the private investor, for every $5 of public funds received, he has to put up a $1, so you might call it skin in the game. He has something to lose also."

Schaer:

"There's a sign that we want to put out today - New Jersey is open for business, but it is not for sale."

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