Bucco and seacruiser, think you are close in that the explanation I heard was that there were incidents at the tree lighting ceremony. These led the ("volunteer retiree") crowd control people asking for police presence or they would not work the NYE gathering. When law enforcement indicated they couldn't accomodate the request, the volunteers opted out. Leading to the cancellation.
Recall last NYE at LSL where non-residents (teens/20 year olds) were drunk and pushy. Also several incidents of drunks and vomiting in public. >
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Having private parties this year.