Waterloo Village - Controversy, Downfall, and Closure

Controversy, Downfall, and Closure

With the death of Lou Gualandi in 1988, however, Percy Leach lost his most trusted advisor, and the one who had been the voice of moderation in their relationship. Following Gualandi's death, Leach became involved in several controversial projects that brought greater scrutiny upon the Waterloo Foundation for the Arts. The most controversial was the so-called "land swap" that allowed BASF corporation to build a large corporate headquarters on land that had once been part of Allamuchy Mountain State Park. The swap, which was expedited by then New Jersey Governor Thomas Kean, a Leach family friend who had worked as a volunteer at Waterloo during the nascent stages of the village's rebirth in the 1960s, was to pave the way for the aforementioned amphitheater complex, a project that never got past the initial planning stages.

The BASF issue, which had aroused considerable opposition, ushered in a period of uncertainty for Waterloo Village and to some degree contributed to Leach's eventual ouster from his key position with the foundation. The Waterloo board of directors subsequently brought in a new management team and throughout the mid- to late-1990s tried to rebuild trust in the running of the village. Over this time, the foundation slowly downsized the concerts that were held in association with the village, as some of the earlier rock concerts had drawn nearly 20,000 spectators and had completely overwhelmed the area's limited access roads and had caused considerable friction with the surrounding towns.

In the period from 2003 to 2006, the Waterloo Foundation for the Arts had received $900,000 from the State of New Jersey for general expenses, along with more than $300,000 since 2000 to cover repairs. As the state showed increasing displeasure with the village's operation, the $250,000 the group had expected to receive, which would have been used towards the $2 million operating budget for the site, was cut from the 2007 state budget. Waterloo Village was shut down in December 2006, except for the privately-owned Waterloo United Methodist Church, which has a small but dedicated congregation and continues to operate as it has for over 150 years while the fate of the village itself is uncertain. Since 2006, the Village has been open intermittently. For example, in late September, 2008, the concert stage was temporarily opened for the Geraldine R. Dodge Poetry Festival.