Senator Kevin O'Toole

August 19, 2008   

Contact: Senate Republican Office / (609) 292-5199
Senator Kevin J. O'Toole

Senate Republican Whip Kevin O’Toole issued the following statement after reading articles and commentary in the Record of Bergen County about the role that Gary Rose, former chief of the Office of Economic Growth, played in negotiating a bailout of the troubled Xanadu project in the Meadowlands:

“Reports that Rose held significant interests in Goldman Sachs and Dune Real Estate are troubling because the investment bank and hedge fund played such key roles in the Xanadu bailout. I agree with Senate President Codey’s published comments questioning whether former Goldman executive Rose should have been involved with the negotiations, given his close ties to the bank and investments in Dune. I also echo Senator Gordon’s concern about the belated disclosure of Rose’s investments in Dune and Governor Corzine’s relationships to investors in the Dune hedge fund.

“Reporters are right to question the handling of these negotiations. I call on Gary Rose to clear up remaining questions about his role by detailing publicly what took place during the talks and what steps he took to eliminate conflicts of interest.

“The total government investment in the Xanadu project is large and probably growing. Taxpayers deserve to be reassured that public officials charged with negotiating on their behalf were acting only with their interests in mind. Mr. Rose needs to provide that reassurance by disclosing the history and present standing of his holdings in Goldman and Dune, and explaining the actions he took while negotiating the rescue of the Xanadu project.”

Senate Republican Whip Kevin O’Toole issued the following statement after reading articles and commentary in the Record of Bergen County about the role that Gary Rose, former chief of the Office of Economic Growth, played in negotiating a bailout of the troubled Xanadu project in [...]