The $2 billion project in the Meadowlands has been stalled due to funding problems.
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The exterior of the unfinished Xanadu project in East Rutherford will get a makeover when new investors are found.EAST RUTHERFORD — Time ran out today for the troubled Xanadu entertainment and retail complex.
A consortium of five lenders this morning took over the stalled project from a group led by Colony Capital LLC, which ran into problems last year after an affiliate of bankrupt Lehman Brothers stopped providing promised construction funds and could not find alternate financing.
"This action creates a strong foundation to effect the seamless transfer of ownership in order to complete this project as quickly as possible so that it is open and flourishing as an established visitor destination in advance of the 2014 Super Bowl," said Michael Beckerman, a spokesperson for the lenders.
Carl Goldberg, chairman of the New Jersey Sports and Exposition Authority, which was overseeing the privately built project, said in a statement that the process to responsibly resolve the Meadowlands Xanadu situation has been underway for some time and today’s announcement was a forward step along the way. "The New Jersey Sports & Exposition Authority and the Governor’s Advisory Commission will continue to work with the banks as there are a number of interested parties in the property. All interests involved wish to see the most qualified party selected to complete and open the project," said Goldberg.
A spokesman for Colony declined comment.
The Christie administration has been pushing for a resolution on Xanadu. A special governor's commission has been talking behind the scenes with at least two developers to take over the project, calling for it to be completed or demolished. They include the Triple Five Group, a Canadian conglomerate that owns and operates the massive Mall of America in Minnesota and the West Edmonton Mall in Canada, and Stephen Ross, whose firm, the Related Companies, has been in negotiation with the state for months in connection with a possible tax-exempt financing package .
The $2 billion Xanadu complex, adjacent to the New Jersey Turnpike in the Meadowlands, was to feature an indoor ski slope, skydiving wind tunnels, the country's tallest Ferris wheel and hundreds of retail shops. Construction has halted last year and the site closed to visitors.
The new group now controlling Xanadu said it is negotiating with several entertainment and retail operators that have the financial resources as well as the leasing and development expertise necessary to successfully complete a project of this magnitude. In a statement, the group said the new operator will be required to accelerate completion of the project, which will include refinishing the widely criticized exterior of the building and implementing a full re-branding campaign for the project.
| Ledger Live submits Xanadu concepts to the Gov. Christie's office |
Previous coverage:
• Meadowlands Xanadu has two developers seeking to revive stalled N.J. project
•Star-Ledger editorial coverage: Xanadu's the biggest pipe dream since Coleridge
• Meadowlands ex-CEO says Xanadu completion is key to sports complex's success
