The citizens' campaign to force a referendum on granting Gloucester Crossing a 12 year, tax forgiveness worth an estimated $3.2 million tax break has failed, according to City Clerk Robert Whynott

"There is no basis in law for any extension," Whynott reiterated Friday, "and it's over."

But the opposition is not ready to concede, and is now threatening legal action.

James O'Hara, one of the leaders of the opposition, said his group, which gathered more than 2,500 signatures on petitions seeking repeal of the council's decision, is "researching what our rights are."

"People out there are kind of appalled," he said.

He also released a Dec. 31 letter to Whynott, which demanded the acceptance of the 741 signatures that were not accepted when they were presented on Dec. 29.

"We tried to contact your office today, to deliver this letter and the 741 Citizens Referendum signatures in person, but found City Hall closed, presumably because of snow," the letter began.

"We have spoken with counsel, and herewith demand that you accept the 741 Citizens Referendum signatures we delivered to your office on 29 December 2008, and request a written explanation of why you did not accept them at the time delivered.

"If you do not accept them, we anticipate issuing a Writ of Mandamus from the Essex Superior Court in Salem, directing you to accept these signatures and our Citizens Referendum opposing the granting of a TIF to Gloucester Crossing and Demoulas Supermarket," it read.

Whynott made his comment to the Times about the petition drive's shortfall after conferring with City Solicitor Suzanne Egan about an earlier pair of letters to Whynott from O'Hara on behalf of a subset of the group No Free Lunch for Gloucester Crossing.

Dated Dec. 27, The first letter demanded an extension of a deadline to give the citizens more time to gather and submit voters' signatures behind a petition campaign to force a referendum on the decision by the council last month to authorize the tax forgiveness in the form of a TIF or tax incremental financing agreement with developer Sam Park.

The second letter, written four days later, reflected the decision by Whynott to disallow a belatedly delivered group of 741 signatures that would have put the number beyond the 2,170 needed to qualify the campaign.

The City Charter allows citizens to force a council reconsideration and if necessary a ballot referendum by filing signatures equal to 10 percent of registered votes, and gives 21 days from the council act to present the signatures needed to trigger the remedial counter-measures.

Whynott counted 21 days as expiring on Dec. 26, even though the council vote for the TIF was on Dec. 3, but he noted that City Hall was closed for Christmas.

O'Hara and his colleagues countered that a parking ban imposed in response to the three-day storm on the weekend before Christmas ought to have been taken into account when counting to the deadline for petitions. O'Hara claimed an "act of God" extension.

Whynott has said there was no provision in the City Charter for "acts of God" or any other extensions of the 21 days allowed by charter for the gathering of citizen signatures.

Hoping to win a concession of extra time to achieve the numerical threshold of 2,095 signatures — 10 percent of the number of registered voters — the petitioners on Friday, Dec. 26 were barred at the City Clerk's office from filing 741 signatures gathered over the weekend.

Whynott has repeatedly said the charter was precise in granting 21 days and no more for citizens to gather and present their evidence of disaffection with official action.

O'Hara wrote in the second letter that the size of the signing group indicates that "a substantial proportion of the citizenry of Gloucester opposes the granting of local, state and federal tax money in the form of a tax forgiveness in the form of a 50-percent reduction over 12 years."

Richard Gaines can be reached at rgaines@gloucestertimes.com