A file photo of the unfinished Xanadu project in the Meadowlands.EAST RUTHERFORD — Xanadu, the much-derided and long stalled entertainment and retail complex in the Meadowlands, got a new lease on life today.
Triple Five, owner of Mall of America, signed a letter of intent to acquire the unfinished project from a group of lenders that currently own the debt. No terms were announced.
The deal was disclosed by Gov. Chris Christie, who has been pushing for a resolution on Xanadu.
"We're glad to have Triple Five's long-term investment in New Jersey and I am confident that the developers who created the most visited mall in the world, due to their vision and innovation, will transform the Meadowlands into New Jersey's very own Mall of America," said Christie. Xanadu, a planned $2 billion retail, sports and entertainment center located alongside the New Jersey Turnpike in East Rutherford, was to bring in new revenue and business to the Meadowlands, with shops, restaurants, an indoor ski slope and the largest Ferris wheel in the country. But the much-ballyhooed effort has been in limbo for well over a year.
Developer Colony Capital and its partners, which took over Xanadu in 2006 from the now-defunct Mills Corp., ran into major financing problems when an affiliate of bankrupt Lehman Brothers stopped providing promised construction funds, and the bankers on the project took control in August.
“Today’s announcement follows an intensive and thorough process to select a developer that has the track record and expertise necessary to maximize the value of this development for all stakeholders,” stated Michael Beckerman, a spokesman for the lenders. "The lender group looks forward to finalizing a transaction with Triple Five and working with them to deliver on the original promise of the development as a premier visitor destination and significant economic catalyst for New Jersey.”
State officials said the new developer will publicly unveil the company’s specific plans for the project some time next year.
"We are confident that Triple Five will transform the Meadowlands project into a world-class tourist destination. We have monitored the project since its inception and are uniquely positioned to complete the project and operate it successfully,” said Paul Ghermezian, senior vice president of Triple Five.
Previous coverage:
• Public pensions that invested in Xanadu project at N.J. Meadowlands have lost millions
• Panel will advise Gov. Christie on four potential suitors in Xanadu redevelopment
• Federal officials issue subpoenas over stalled Meadowlands Xanadu project
• Five lenders take control of troubled Meadowlands Xanadu project
• Investors might be forced to hand over Meadowlands Xanadu
• Meadowlands Xanadu has two developers seeking to revive stalled N.J. project
• Meadowlands ex-CEO says Xanadu completion is key to sports complex's success