Former Gov. James E. McGreevey announced last night he was
resigning from the law firm that hired him last year after
he stepped down as governor after admitting a homosexual affair.
The announcement came amid allegations that McGreevey's work
for the firm on behalf of the developers of the $1.3 billion
Xanadu project at the Meadowlands sports complex represented
a conflict of interest.
In a written statement announcing his resignation from the
firm of his friend and confidant, state Sen. Raymond Lesniak,
McGreevey thanked Lesniak for his "friendship and support"
during "a very difficult period in my life."
"It is clear, however, that my work with Weiner Lesniak
has created distractions," the statement said. "As
such, I have informed Senator Lesniak of my decision to leave
Weiner Lesniak effective immediately."
McGreevey stunned the nation in August when he disclosed his
homosexual affair. He went to work for Weiner Lesniak after
his resignation as governor in November.
In his position with the firm, McGreevey had been doing legal
work on behalf of the Virginia-based Mills Corp. and its partner,
Mack Cali Realty of Cranford, which were named by his administration
two years ago to develop the Xanadu project, a huge entertainment
and retail complex planned for the area around Continental
Airlines Arena.
State employees are barred from doing business related to
their work with New Jersey for a year, but there is currently
no such restriction on former governors.
In response to the disclosures about McGreevey's involvement
with Xanadu, first reported by The Record of Bergen County
and The Star-Ledger of Newark, acting Gov. Richard J. Codey
yesterday directed his legal counsel to review and possibly
make changes to the state's ethics guidelines as they apply
to the executive branch.
-- -- --
F ormer Mercer County Executive Robert D. Prunetti has worked
for more than a year on behalf of a company that became linked
to the county during his days in office, but little criticism
has followed that move.
As a consultant, Prunetti has helped oversee Manex Entertainment's
plans to open up shop in the former Roebling factory complex
in Trenton. Under Prunetti's administration, the Mercer County
Improvement Authority sealed a deal to loan the company virtually
all of the cash needed to buy the site.
Reached yesterday in Los Angeles while working for Manex,
Prunetti said his role didn't pose a conflict.
Prunetti said he was involved with efforts to bring Manex
to Trenton as county executive, but he hasn't taken part in
any direct negotiations with the county since he started his
consultant job.
"There were occasions when I acted as a liaison, but
I didn't represent them before the county or negotiate like
that," he said.
The Manex project has yet to get off the ground, but Prunetti
said the plans are still in the works. Though Prunetti said
his situation was far different from the former governor's
current position, he said he didn't know enough about McGreevey's
involvement to know whether it was unethical.
Prunetti noted that he talked to several attorneys about his
decision to act as a consultant for Manex and all said it
didn't pose a conflict with any county guidelines.
McGreevey's re-emergence in the public eye on behalf of a
developer tied to his administration triggered a backlash
of criticism from environmental and watchdog groups who see
the former governor's new role as a conflict.
"He obviously had a relationship with Xanadu before he
left office, when he was a decision-maker over the project.
Now that he's not in that office anymore, he's obviously benefiting
from his previous relationship," said Dena Mottola of
the New Jersey Public Interest Research Group.
-- -- --
"In a state that has seen so many ethical problems in
the past two years, the issue with Governor McGreevey is almost
worse than anything we've seen," said Jeff Tittel, director
of the New Jersey chapter of the Sierra Club.
The Sierra Club has lawsuits against the state over traffic,
air quality and other issues related to Xanadu. "There's
a governor who promoted ending `business as usual' in Trenton,
and he's taken it to a new art form. It's shameful,"
Tittel said.
An independent investigation should be conducted to see if
McGreevey expected favors as a result of his support for Xanadu,
Tittel said.
"I do wonder how he got to this point," said Tittel.
"It appears to be an ethical violation."
In a written statement acknowledging McGreevey's resignation,
Lesniak denied that McGreevey's work was a conflict of interest.
"Governor McGreevey's work with Weiner Lesniak was at
no times in conflict with state ethics laws. New Jersey's
Conflicts of Interest Law applies to Cabinet officers and
employees of the executive branch but not to former governors
themselves. Not withstanding this, earlier today, Governor
McGreevey said he would voluntarily comply.
"In reality, since a governor touches every aspect of
public life in New Jersey, it is impossible, as a practical
matter, for a Governor to practice law at our firm,"
the statement read.
McGreevey did not specify what he planned to do next but said
in his statement that the decision would "enable me to
pursue professional interests focusing on public policy challenges."
A former mayor of Woodbridge, McGreevey was elected governor
in 2001.
McGreevey did not immediately return a phone message left
at his transition office in Woodbridge by the Associated Press
last night. A message left for Lesniak at his home was not
immediately returned.
-- -- --
George Zoffinger, president of the New Jersey Sports and Exposition
Authority, said he was surprised to hear of McGreevey's involvement.
The authority controls the Xanadu site.
"He has no involvement with the sports authority,"
Zoffinger said. "I don't know exactly what he's done.
I've never talked to him about it. He's never talked to me
about it. People can talk and draw conclusions about it anyway
that they want."
Bill Sheehan, the riverkeeper for the environmental group
Hackensack Riverkeeper, called McGreevey one of the state's
best governors and did not see a problem with him working
on the project.
He also praised Zoffinger and Carl Goldberg, the authority
chairman, for their "honorable work" to stop Xanadu
from being built on 587 acres of wetlands that now is protected.
"When (people) stop being governor or go out of office,
it doesn't mean they have to stop living," Sheehan said.
"When he announced he was going to resign, I was very
upset about that. . . . I'm glad to see he landed on his feet."
Lesniak's firm was hired by Mills/Mack Cali after the partnership
was chosen to develop the Xanadu project.
McGreevey had made Xanadu a centerpiece of his economic vision
for New Jersey. When he signed the ground lease for the project
in October - just weeks before leaving office - he boasted
Xanadu would generate work for more than 40,000 people.
But the project triggered feuds with environmental groups,
which went to court to block construction, complaining the
project would add to traffic congestion and pose a threat
to water quality in the environmentally sensitive area.
