This is a rush transcript from "On the Record," August 26, 2009. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: Not in our backyard, that's what some neighbors in New Jersey are telling Libyan President Muammar Qaddafi. In less than one month President Muammar Qaddafi is coming here to the United States to speak at the United Nations.

But check out his housing plans. Qaddafi plans to stay in Englewood Cliffs, New Jersey. He wants to pitch his Bedouin tent there, something he does when he travels.

And Englewood Cliffs neighbors are fuming. Why? Well, for starters, Qaddafi gave the Pan Am killer a hero's welcome in Libya. The Pan Am 103 killer was released from jail after only eight years.

The Scottish government released him on compassionate grounds because they say he has terminal cancer. But people are furious. He killed 270 people -- do the math. That's about 14 days per murder. Thirty-three of the Pan Am victims were actually from New Jersey.

Now, we spoke to one very angry and prominent resident in particular, Rabbi Shmuley Boteach.


VAN SUSTEREN: Rabbi, it's nice to see you, sir.


VAN SUSTEREN: In person, we've spoken before.

BOTEACH: We have.

VAN SUSTEREN: Where are we, by they way?

BOTEACH: We are in Englewood, New Jersey. It's a suburb of New York City, across the Hudson. And we are only about, without traffic, maybe 15 or 20 minutes from downtown Manhattan.

VAN SUSTEREN: There is a lot of noise in the background. What is that noise from?

BOTEACH: They are now --

VAN SUSTEREN: Who is "they"?

BOTEACH: I have a very interesting neighbor. It's the Libyan Mission to the United Nations. And they are preparing for a visit by Colonel Muammar Qaddafi, the dictator of Libya.

VAN SUSTEREN: Next door, this property is owned by the Libyans.

BOTEACH: Now, it is supposed to be the residence, the second residence of the Libyan ambassador to the United Nations.

Here's what's interesting -- for 10 years this property was completely and utterly derelicts. If they had put $100 into this over 10 years I would be surprised. It was overgrown. It was a community eyesore.

And about three months ago, it sprung to life with a frenzy of construction activity that is truly mind-boggling, because when you are a Middle Eastern dictator whose regime set afloat of an ocean of oil, you have a lot of money to spend even for your two-week jaunt in New Jersey.

Now, Qaddafi has the habit of pitching is Bedouin tent with which to receive his VIP guests and visitors when he travels abroad. He has no place to pitch in that tent.

VAN SUSTEREN: He wanted to do it in Central Park, but he got turned down for that.

BOTEACH: He asked for a permit in Central Park and was turned down.

If you look at the level of expenditure that is going on here, you can see that this is truly staggering. It has been done to the highest standard. It was a derelict property. It did not have a roof.

VAN SUSTEREN: You have a new fence?

BOTEACH: This fence is brand new. My fence was taken down without my having been informed, without my permission, without my authorization. I woke up and it wasn't there.

They went and illegally cut down all of my trees, and you do not have to be a rocket scientist to understand why. Qaddafi comes with a small army to protect him. And they need to other people's properties in order to protect him.

So our privacy is entirely compromised. Let alone, who knows what state-of-the-art eavesdropping devices they will use in order to enact comprehensive surveillance. So this is the last thing that we need.

And I'm a rabbi. I am committed to values, and I run something called this world of values network, the highest value which is human life.

Qaddafi is a man who was contemptuous of human life. His behavior over the weekend and welcoming a mass murderer, a cowardly, cold-blooded killer who killed 270 people, including many Americans, including many residents of the state of New Jersey, welcoming that man as returning conqueror, as some sort of hero, lionizing him, chatting and, that was stomach turning.

Let's remember, Al-Megrahi, the Lockerbie bomber, was a member of Libyan intelligence. He was not officially a terrorist. He was a member of Libyan intelligence, and he carried out the orders to place this bomb on Pan Am 103 that disintegrated over Lockerbie, Scotland.

So what Qaddafi comes with all the security men, who knows what these guys are involved in, what activities they are involved in?

Could you imagine these poor families 20 years later are just beginning to get all of the lies, and now they have to feel the absolute, the shocking horror of having to see the murderer being welcomed -- not just welcomed quietly, but welcomed home to some sort of hero, a coward.

What kind of hero is he? He put a bomb on the plane where innocent people were doing business, going to visit families, and they blew up, and were dismembered over a small Scottish town, and this man is a hero?

To bring a terrorist to the shores and to grant him a visa is utterly inappropriate.

VAN SUSTEREN: Are you the only one in this neighborhood saying this? As a mayor spoken of in this community? Who is speaking besides you?

BOTEACH: We are a unified voice in this community to keep Qaddafi out, and we have a very big rally here on Sunday, god willing, where the residents are going to make their voices known.

We don't want him here. We do not want a terrorist here. We do not want a terrorists lover. We don't want a terrorist financier here.

Qaddafi has disgraced himself in the eyes of the world in the past few days, and there should be a price to pay. The United States should not have him on their soil. We don't want him in Englewood.


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