Thursday, May 27, 2021

EPCAL Watch Letter Opposing Scrambul Drag Race Permit

 

EPCAL WATCH COALITION

Reginald Farr  Coordinator

Associates

LI Pine Barrens Society

                                    Richard Amper

Group for the East End

Bob De Luca

North Fork Environmental

     Council

                                    Mark Haubner

Defend H2O

Kevin Mc Allister

Open Space Council

Karen Blumer

Michael Madigan

Riverhead Neighborhood

     Preservation Coalition

Phil Barbato

Seatuck Environmental

John Turner

Long Island Sierra Club

Charles Brevington

Audubon Society

Patricia Aitken

Greater Calverton Civic

Toqui Terchun

George Bartunek

Janice Sherer

Greater Jamesport Civic

                                  Patrick Derenze

Northville Beach Civic

Linda Prizer

Kathy McGraw

Sound Park Heights Civic

Michael Foley

Wading River Civic

Sid Bail

 

 

Barbara Blass

Angela De Vito

Christy Hawkins

John McAuliff

Doug Rosenbrock

Rose Sanders

156 Youngs Avenue     Riverhead, New York 11901     631.369.8237

 

 

 

May 26, 2021

 

 

Yvette Aquiar, Supervisor

Members, Riverhead Town Board

Town of Riverhead

200 Howell Avenue

Riverhead, New York 11901

 

RE:      Scrambul Drag Racing at EPCAL

 

 

Madame Supervisor and Members of the Town Board:

 

EPCAL Watch looks forward to the results of your review of the application and contract with Scrambul for use of the runways and adjacent land for drag racing next month.

We are concerned how this project could have come this far without consultation with the civic association and population of Calverton, the hamlet mostly directly affected, and without basic due diligence about the autosports and business credentials of the applicant. 

 

Did you vet the applicant sufficiently to be confident he and his company can fulfill contractual obligations? 

Scrambul was incorporated on December 7, 2020 and has no record of business.  According to its New York State registration it had 1500 shares of stock valued at $.01 per share.  The application shows the same person as President, Vice President, Secretary and Treasurer, hardly the way to describe a real corporation. 

The Town Attorney said at the work session that he was going to request information about prior experience.  What did he find out?  A video was shown to the Board purporting to cover safety provisions but it was an amateurish promotional production.  The Scrambul web site lists six venues for races but only Riverhead is confirmed.

Did Mr. Murphree or his staff in the Planning Department make any effort to have Mr. Baxter correct his woefully inadequate and inaccurate application as was done for Mr. Scalzo?   Why didn’t Mr. Murphree warn the Board of these problems at the work session or Board meeting?

 

Flaws in the Short Environmental Assessment Form

Attached is an EAF generated by the NYSDEC computer app for EAFs.  There are many inconsistencies with Mr. Baxter’s EAF, including

§  its designation of the site not being in a state designated Critical Environmental Area

 

§  the claim there will be no substantial increase in traffic.  With 1000 attendees already purchasing racer and spectator tickets, how could there be no traffic? 

 

§  the claim that the site does not contain any species of animal or their habitats listed as threatened or endangered.  This is patently false and should have been picked up by the Town reviewers

 

§  the claim that the site is not the subject of remediation for hazardous waste, also patently false and should have been

 

§  the claim that the grasslands, and therefore grassland dependent bird species and other wildlife, will not be adversely affected. It was stated that there will be no activities on the grass yet that is not what the diagrams of the two runways show.  Those illustrations show handicap and paddock parking, timing trailers, and fire/rescue vehicles in the grasslands.  

 

§  the total acreage of the site of the proposed action is shown as 2921 acres.  Do they intend to use all of EPCAL? 

 

§  total numbers on one or both days could easily exceed 1,000 including racers, spectators, children, staff, volunteers, vendors, security, etc.  That possibility obligates a mass gathering permit.  [“Special event large gathering. Where 1,001 to 4,000 attendees are expected at the event per calendar day”]

Will the town independently monitor numbers admitted to the site on each day and require admissions be halted if the total number present will exceed 1000?   Have you seen their sales reports that indicate tickets sold to racers, including "crew members", and number of one day spectator passes for Saturday and for Sunday as well as two day passes?

 

Problems in the Special Events Application

§  Andre Baxter is entered as a “person residing in Suffolk County”, but his residence is in Hempstead in Nassau County.  On one of the affidavits he gives an address of Long Island City, Queens.  What are the implications of not being a Suffolk County resident for the application, for additional payments for “day-of” services, and for the Hold Harmless obligation? 

 

§  The total people per day and per hour is listed as 150.  What is the revised figure?  Do spectators at such events stay for the rest of the day once they enter or remain only for an hour or two?  As noted above, have you seen their sales reports that indicate tickets sold to racers, including "crew members", and the number of one day spectator passes for Saturday and for Sunday as well as two-day passes?

 

§  The Parking section is out of date, indicating 250 parking spaces on site and none off-site.  What are the revised numbers?

 

It is necessary to issue a Rescission of the Type II/Negative Declaration and replace it with a Type I/Positive Declaration

The questionable Type II SEQR designation is presumably based on NYCRR 617.5(b )(21) which states: "(21) minor temporary uses of land having negligible or no permanent impact on the environment". While one could reasonably argue that the use proposed will not have permanent impacts, they are hardly negligible given their potential impact on grassland dependent wildlife at the worst possible breeding and nesting time.  

The size of the event requires Type I pursuant to NYCRR 617.4(bI)(6)(iii) as follows:

(6) activities, other than the construction of residential facilities, that meet or exceed any of the following thresholds; or the expansion of existing nonresidential facilities by more than 50 percent of any of the following thresholds:

(iii) parking for 500 vehicles in a city, town or village having a population of 150,000 persons or less;

Scrambul has sold tickets for four hundred cars to participate as competitors.  Ticket sales for spectators are at least six hundred.  Additional staff, volunteers, crew members and vendors are likely to increase the number of vehicles over the 500 limit.  Presumably some of the cars will be brought on truck drawn trailers which will remain on the grounds.

Type I classification and issuance of a positive declaration requires preparation of an EIS which would go into granular detail about all aspects of the proposal and require a discussion of mitigation measures and reasonable alternatives as follows: 

 

(v) a description and evaluation of the range of reasonable alternatives to the action that are feasible, considering the objectives and capabilities of the project sponsor. The description and evaluation of each alternative should be at a level of detail sufficient to permit a comparative assessment of the alternatives discussed. The range of alternatives must include the no action alternative. The no action alternative discussion should evaluate the adverse or beneficial site changes that are likely to occur in the reasonably foreseeable future, in the absence of the proposed action. The range of alternatives may also include, as appropriate, alternative:

(a) sites;

(b) technology;

(c) scale or magnitude;

(d) design;

(e) timing;

(f) use; and

(g) types of action.

 

 

Unanswered Questions

 

We assume many if not all of the following questions are already on the lists of the town’s professional staff and in your minds as you consider how to resolve the many problems associated with this event.

§  Where is Exhibit A (a depiction of the premises) mentioned in paragraph B of the Short Term Runway  Agreement with Scrambul that is the subject or Resolution CDA 2021-5? 

 

§  Is this missing depiction a revision to the Scrambul site plans they displayed at the April 29th Town Board work session?

 

§  Has Scrambul submitted any revised site plans or are those from the April 29th work session still accurate?

 

§  How can Scrambul make the active FAA runway, Runway 14/32, available and prevent any use of it that might interfere with the runway’s use when the Scrambul site plan shows concessions and restrooms will be located on that runway not to mention two drag racing tracks?

 

§  The Scrambul site plan shows parking along runway 14/32. Is that still the plan?  If so why does the Runway Agreement at #13 talk about a parking plan to be submitted not less than 14 days before the start of the Term of the Agreement (Term of the Agreement starts June 17 so plan must be submitted by June 3rd) and why is there mention of shuttle service and authorization from owners of property that may be used for parking?

 

§  Is the yet to be revealed traffic plan (also due by June 3rd) to be implemented by a private company not the Town Police?

 

§  How can the Town give Scrambul exclusive rights to the use of these two runways for this event when the Town has another lessor, Robotics Inc, that leases and uses a portion of these runways?

 

§  How and where will spectators be controlled? The Scrambul site plan shows a small area for spectators adjacent to runway 14/32.  Will there be a fence around the area? At the work session, Scrambul said spectators will not be permitted to go to Runway 5/23:  how will they be kept from going there? How will they be kept off the protected grasslands?

 

§  The Scrambul website says there will be no bleachers but spectators can bring chairs and EZ tents.  Where can they set these up?

 

§   In social media there have been references to overnight camping or parking at the site.  Has that been discussed and/or explicitly prohibited?

 

§  The Scrambul site plan shows only a fence between the spectators and the race track, no concrete barrier. Member Rothwell at the work session asked for a revision of the placement of concrete barriers. Has that revision been received? What does it show? 

 

§  What kind of concrete barriers will be used?  Jersey or Texas barriers such as used during highway construction?  How many will be rented and brought it by special trucks? 

 

§  The proposed Short Term Runway Use Agreement, Paragraph D states that Scrambul shall pay rent for, "Surface use for Runway 5/23 and Runway 14/32, associated taxiways, and other areas".  What are these unnamed "other areas"?

 

§  Because Scrambul has no established corporate identity or credit record, will you apply 255-10 D?  “The Town Board may require the applicant to provide a letter of credit, bond or other suitable security instrument to secure compliance with conditions in the permit for an event to be conducted on Town property and to insure adequate cleanup of the property after the event. The Town Board shall set the amount by resolution, and no permit shall be issued until the security has been provided to the Town Clerk”

 

§  Have you ascertained the views and received clearance about drag racing at EPCAL from the Suffolk County Department of Health, the Department of Environmental Conservation, the Calverton National Cemetery, the Gold Star Mothers and the residents of Calverton and other nearby communities?   Has a completed application as revised been filed with the Suffolk County Department of Health Services?

 

§  Is Scrambul planning to add any chemical or material to the surface of the runways?  Will it be cleaned off after the two days of races?  Is there any risk of surface or water contamination in bordering areas?

 

§  Did each member of the Board receive notice of the Fire Marshall’s findings and review them?  Has that now occurred?  Is it available to the public?

 

§  What state and local laws, rules and regulations were used as indices of sufficient compliance?

 

§  Are the Standard Operating procedures [SOPs] and policies referred in the application attached to the public safety plan?

 

§  Are the EMT/EMS staff members the only emergency personnel that will be on-site?

 

§  Is the Manorville Volunteer Fire Department going to be on-site for the entirety of the event?  If not, what is their anticipated time of arrival as needed? And who will intervene until they arrive?  What other fire departments have signed on to assist?

 

§  What type of staffing, including volunteers?  What are their qualifications and credentials to perform requisite services including but not limited to EMT/EMS?  For example, have staff been trained in traffic zone safety?

 

§  Is there a separate first aid tent for spectators or are services for possible non-life-threatening injuries incorporated into the anticipated EMT/EMS services?

 

§  Is it realistic to project that the EMS access time to an incident via each of the four access points mentioned in the plan is only two minutes?

 

§  There appear to be provisions for evacuation of staff, autos and associated auto drivers/staff.  But where are the provisions for the spectators?

 

§  Have all the vendors been identified?  Do all have the requisite SCDOH permits?

 

§  Is the signage sufficient?  Where exactly will they be located to allow for ease of viewing?  The event maps/plans do not show such. 

 

§  1,000 spectators and their cars now anticipated, what is the number of portable toilet facilities that will be available?  (Estimates of usual use call for about 23 uni-sex units, not counting ADA compliant units.)  How many units will be ADA compliant?  How many times a day will they be cleaned?  Will each unit have hot and cold water available for handwashing as well as single use towels for hand drying?  Will facilities for female patrons be equipped with sanitary item disposal containers?  Will there be attendants/volunteers present to assist with maintenance, ensuring the units remain clean and sanitary? 

§  What materials will be used to suppress/put out any fires/explosions that may occur as the result of an accident/mishap?  Do we have the MSDS sheets for these substances?  Do any of the firefighting materials contain regulated chemicals such as PFOS?

 

§  What chemical substance will be used to enhance track traction?  How is it disposed of once it is applied to the runways?

 

§  How many trash/waste material containers/barrels will be on-site?  How often will they be emptied during each of the 12-hour days?

 

§  Will spectators be allowed to bring in coolers and food stuff?  How will the event applicant control for on-site use of alcoholic beverages, whether they arrive with the event goers or are sold by vendors?

 

§  Is the Town of Riverhead, including our EMT/Ems services and police services [our traffic control officers] going to be assigned to this event?  If so, what are the anticipated costs to the Town and how will these be met?  Will staff be taken off normal operations and assigned to EPCAL?

 

§  Has the Police Chief reviewed the proposed traffic control measures, and if so can his findings/report please be shared with us?

 

§  How will Town re-coup money spent to have Town employees at the site each day of the event?  Has a budget for projected salaries and benefits been developed and presented as an appendix to the proposed contract?

 

For the above reasons and pending questions as citizens of Riverhead, we see no alternative but to rescind the approval under article § 255-13. “statements contained in the application are materially inaccurate” and accordingly, permanently table the proposed contract until a new application is approved.  If a more accurate application is presented, we hope it will satisfactorily address the following problems:

Additionally these requirements from Chapter 255, Article II - Special Events of the Code have not been met:

 

Section 255-9C(4) - application must include an environmental impact study

 

Section 255-11B - in determining whether to approve or deny an application the Town Board shall consider the information provided including: (1) the environmental impact study

 

(8) - verification that the information contained in the application is not found to be false or nonexistent in any material detail.

 

Sincerely,

 

Rex Farr

Coordinator

 

 

 

 

 

Wednesday, November 18, 2020

Personal Doubts About the Preston/Ghermezian Deal

 The following is my personal compilation and does not represent EPCAL Watch 

       --John McAuliff


There are many reasons that the procedure of creating the contract with EPCAL is so flawed that it borders on fraud and merits investigation by legal authority at the County or State level.  Beyond that the impact of the Ghermezian family becoming our largest and wealthiest landowner should be of concern to not only the people of Riverhead, but also of the East End and all of Suffolk County.

 

1)       Then Supervisor Sean Walter and Frank Isler deliberately withheld from the Town Board that there were other potential offers for the land despite the obligation to share that information in a timely fashion.

 

2)       The contract emanated from the computer of the prospective purchaser, not from that of the town or its legal representative.

 

3)      The addition of 1,000 acres without any change in cost was not debated and specifically voted on by the Town Board.  The former Supervisor in collusion with Daniel Preston simply announced the change and entered it into the Letter of Intent.  Although the Town Board acting as the CDA did unanimously authorize the Supervisor to sign the LOI which included the 1000 acres via CDA Res. #7, of April 4, 2017, there was no discussion about the inclusion of the gifted property. https://saveepcal.blogspot.com/2019/11/how-1000-acres-were-added.html

 

4)      How much of the land is undevelopable is not written into the contract and has been interpreted in various ways.  https://saveepcal.blogspot.com/2019/11/how-much-land-is-developable.html

 

5)      The resolution of the previous Board that ostensibly agreed to the contract was described by John Dunleavy, its sponsor and an essential vote, to be only for procedural purposes and not a final document but when the new Board took office it was characterized as final and unchangeable.   https://saveepcal.blogspot.com/2019/10/john-dunleavy-on-epcal-contract-vote.html

 

6)      Jodi Giglio’s secret and private meeting with the Ghermezians during the hearing procedure was cleared by the Ethics Board on the technical grounds that town code did not forbid such a meeting and State law did not apply.  Her undeniable conflict of interest required her to abstain of the Qualified and Eligible vote which would have led to a tie and therefore defeat.         https://riverheadlocal.com/2018/04/06/a-public-officials-poor-choice-has-real-consequences-for-all-of-us/

 

7)       The Ghermezians hid from the Town Board the real estate fraud of Stuart Bienenstock,their director of business development and representative to the Board, https://riverheadlocal.com/2019/02/24/court-triple-five-executive-intentionally-defrauded-buyer-in-n-j-real-estate-deal/

 

8)      The Ghermezians also hid from the Town Board the financial and technological bankruptcy of their partner, Daniel Preston and Luminati, and his withdrawal from operations at EPCAL until reported by the Riverhead Local and the News Review.  The Ghermezians paid his debt to the town in order to maintain the fiction of his participation with good standing in the contract.  https://riverheadlocal.com/2019/04/23/luminati-aerospace-ceo-says-hes-moving-his-company-upstate/  

 

9)      Luminati was the sole beneficiary of the covert addition of 1,000 acres at no cost.  By becoming Daniel Preston’s partner in Calverton Aviation and Technology, the Ghermezians shared his privileged and suspect position.  The earlier exposure of dishonesty about his resume and aerospace accomplishments by Riverhead Local led to his neutering as a non-voting 25% owner of Calverton Aviation and Technology although the Ghermezians continued to pretend he was their inspiration and technical expertise.                                                                                                                                https://riverheadlocal.com/2018/02/27/past-full-outrageous-claims-broken-deals-luminatis-daniel-preston-coming-riverhead/

 

10)    The Ghermezians have been charged with corruption connected to their original entertainment mall in Edmonton, Canada and gambling investments in Las Vegas.   They made substantial political contributions to Republicans in New Jersey during the unfinished development of the American Dream entertainment mall.  They use political and economic leverage to obtain public bonding and tax abatements.  Their contributions sought to defeat members of the Miami Commission who opposed their entertainment mall and even one who voted to approve it but challenged any public subsidy. They are under investigation by Canada’s IRS for international financial and tax transgressions.  The Board majority is indifferent to this record.

https://saveepcal.blogspot.com/2019/11/ghermezians-record-in-las-vegas.html

https://www.insidernj.com/press-release/sierra-cub-eda-task-force-investigate-american-dream-xanadu/

https://saveepcal.blogspot.com/2019/11/ghermezians-political-games-in-miami.html

 

 

11)    In the qualified and eligible process, the Ghermezians refused to provide important economic information on the grounds they were a private family company.  The Republican majority said additional information was not needed.

 

12)    The Ghermezians exploit local government resources to fund their projects, examples from Florida and New Jersey 

                 Money owed to local government in NJ

In East Rutherford, where [the Ghermezians'] American Dream is located, officials, including former Mayor James Cassella, said the mall owes $1 million in payments for last year and an anticipated $2 million in payments in 2020 that are outstanding.

 

"East Rutherford in 2020 could be shorted $3 million if you count the million dollars that we should have received” last year, Cassella said. The mayor lamented his home borough may never see the $2 million owed in 2020.https://www.northjersey.com/story/news/bergen/east-rutherford/2020/01/27/east-rutherford-nj-voters-ok-35-5-m-school-bond/4591726002/

 

Within this story is reference to the effort by the Ghermezians to get public funding for their Miami supermall
https://www.miamiherald.com/news/local/community/miami-dade/article236994859.html

This story describes the maneuvering to get around legislated restrictions to provide $15 million in sewer construction.
https://www.miamiherald.com/news/local/community/miami-dade/article223062075.html

 

13)    The description of the Ghermezians development plan in the contract of sale is so general as to be meaningless. Their public relations spins have included power points which promote aspirations to recreate the aerospace industry in Calverton, to become an east coast Silicone Valley, to feature an eco friendly building that is a community asset.

There is suspicion that their goal may be creation of a gambling casino complex based on deep involvement in Las Vegas and the great success of Jakes 58. 

A promo by the Ghermezians about their engagement with native Americans includes these lines about what Triple Five offers:

NATIVE AFFAIRS

WITH A CLEAR UNDERSTANDING OF THE ATTACHMENT TO THE LAND OUR FIRST PEOPLES OF NORTH AMERICA HAVE, AND THEIR STRONG DESIRE TO CREATE ECONOMIC WEALTH FOR THEIR PEOPLE, TRIPLE FIVE WILL BE OFFERING THE FOLLOWING EXCITING SERVICES AND OPPORTUNITIES TO FIRST NATIONS IN CANADA AND THE NATIVE TRIBES OF AMERICA. ...

Development of casinos, residential, commercial and industrial - on or off reservation.

https://triplefive.com/en/pages/native-affairs-division

This is not conclusive, but merits an official question from the Supervisor about whether they would agree to a permanent prohibition in the final sale document on use of EPCAL for a casino.

Of linked concern is the lobbying campaign of MGM Resorts which owns the Yonkers race track and casino (slots only) for legislation that will allow full scale casinos downstate, note the plural which may only refer to Queens, but their map includes Jakes 58..
https://www.mgmresorts.com/en/hotels/united-states/empire-city.html

See page 12 where their survey focuses on Long Island opinion
https://www.mgmresorts.com/content/dam/MGM/mgm-empire-city/resources/reports/mgm-empire-city-resources-nys-october-gaming-survey-deck.pdf

 

14)    The corona virus crisis has introduced new even more serious questions about whether the Ghermezians are financially qualified to purchase the EPCAL land. 

https://www.cnbc.com/2020/04/06/mall-owners-worried-over-mortgage-payments-as-retailers-skip-rent.html

https://www.forbes.com/sites/warrenshoulberg/2020/04/09/post-coronavirus-american-dream-will-try-yet-another-re-do/

 

 

My Op Ed published in the Riverhead News Review on January 20, 2020

https://riverheadnewsreview.timesreview.com/2020/01/97775/guest-column-new-board-must-revisit-this-project/

 

               My Op Ed published in Riverhead Local on April 14, 2020

https://riverheadlocal.com/2020/04/14/covid-19-should-not-diminish-our-democracy-but-should-terminate-the-epcal-deal/

 

Mr. Ghermezian said he "just spent $14 million" on the former Dowling College school of aviation in Shirley to help the EPCAL project.

Other areas are "begging" them to come there, he said, and said Riverhead should appreciate that they are interested in EPCAL.

"You have to hug us. You have to kiss  us," he shouted. "This is dirty. This is  politics."

2)   In order to find the Ghermezians qualified and eligible, the Board would need to adopt a resolution to suspend its own requirement for full financial disclosure by the prospective purchaser.  It would be irresponsible to let the Ghermezians evade their obligation to provide complete financial and pro forma statements.

3)  The Q & E decision has been suspended pending a finding by the Board of Ethics about Councilwoman Jodi Giglio's secret private meeting with the Ghermezians.   It the Ethics Board recommends Ms. Giglio recuse herself from voting on the Ghermezian contract, we need to know whether she will accept its conclusion.

4)   It has become obvious from prominent Republican supporters of the deal that all 1,643 acres are intended for commercial use, not only the 600 currently listed as developable.    Deceptive statements that only 600 acres will be developed must be exposed.

-- In his op ed in the May 24 News Review, former Republican Congressman Hochbruechkner argues that all of the land within the EPCAL fence should be used for "economic benefit" because other land outside it has "already been deeded to New York State for environmental protection."  In his view "...environmental goals in the Calverton area have already been addressed...quite successfully."

-- Former head of the Republican Party Mason Haas commented similarly on-line in the Riverhead Local that, "The land within the fenced area was to be off limits to DEC restrictions, as it was to be part of the economic generator for the east end. ... The acreage you speak of if within the fence always was to be off limits to regulations. As we have seen, over regulating does have its down side."




A 2020 article from Minnesota confirms the Ghermezians disposition to use political weight to obtain public funding.



An August 2021 article reaffirms the uncertain financial status of the Ghermezians prime holdings.  Some fear that they can find the money necessary to complete purchase of the land and then will either sit on it until their fortunes improve or flip it to another buyer at a much higher price to pay their debts.

New Jersey’s American Dream Megamall Is Once Again Sinking in Debt

(Bloomberg) -- Since its groundbreaking nearly two decades ago, the megamall built in New Jersey’s Meadowlands has done little except hemorrhage cash. Now, less than two years after its much-delayed opening, the complex known as American Dream is threatening to dash the lofty ambitions of yet another developer.  

The Ghermezian family, which runs some of the biggest and most successful malls in North America, can’t keep up with the bills on the shopping and entertainment megaplex, which helped drive its original developer to the brink of bankruptcy and later was seized by lenders from the team that came next....

https://www.bnnbloomberg.ca/new-jersey-s-american-dream-megamall-is-once-again-sinking-in-debt-1.1641878