I wonder why the controller treated this as emergency. He made someone else go around. You don't hear an emergency declaration from the pilot. He just changed his plan to land at this airport. Why not just go into the pattern and land in turn behind traffic on final? I guess that weird gear config freak out the tower a bit.
There's a slight error in the transcription above. The pilot said, "We have to return to the field here." It's an imperative statement. With the nose gear retracted, I think the tower decided to give landing priority to the departing aircraft by declaring an emergency for him.