From the AP via the New York Post:
The $2 billion Xanadu mall and entertainment complex at the Meadowlands is expected to open a year late.
The huge project was originally scheduled to open in late 2007, but the opening has been pushed back to sometime in 2008, said George Zoffinger, chief executive officer of the New Jersey Sports and Exposition Authority.
The authority entered into a deal with Mills Corp. to develop the 4.8 million-square-foot project in East Rutherford, with an indoor ski slope, but the real-estate investment trust has been saddled with financial problems. The Securities and Exchange Commission is investigating the company’s accounting problems.
Colony Capital Acquisitions LLC is joining Mills and Kan Am USA Management XXII Ltd. as developers.
Mills recently shed assets in preparation of a possible takeover of all or part of the company. On Wednesday, the authority’s board voted to approve transferring the lease from Mills to Colony.
From Reuters:
Mills, Colony Capital close Meadowlands Xanadu deal
Embattled shopping mall owner Mills Corp. said it completed a deal with Colony Capital Acquisitions that releases Mills from future financial obligations to the Meadowlands Xanadu entertainment and retail complex to be built in New Jersey.
…
Mills said in a statement late on Wednesday it completed a restructured transaction over the 2.2 million-square-foot Xanadu entertainment and shopping venue in New Jersey with Colony Capital Acquisitions, LLC and KanAm USA Management XXII Limited Partnership.
Colony Capital Acquisitions said in a statement it will lead the $1.5 billion additional financing needed to complete the project, including $500 million in equity and $1 billion in debt and additional capital.
From the Asbury Park Press:
State agency extends Xanadu work schedule
A state agency has extended the construction schedule for a $2 billion shopping and entertainment complex in the Meadowlands, waiving penalties for any deadlines missed before Colony Capital Acquisitions LLC takes over the job.
The New Jersey Sports & Exposition Authority, which leased the state-owned land to developer Mills Corp., agreed to allow Colony to assume responsibility for completing the 104-acre Xanadu project. The accord moves the projected completion date to the end of 2008.
Mills, which has lost 49 percent of its market value in the past year, has said it lacks the money to finish building Xanadu. Colony agreed in August to take over, and, on Wednesday a final agreement for Colony to do just that was reached.
you talk about a project being mishandled.
our tax dollars at work. what a bunch of DB’s
I have a personal goal of leaving NJ before the bill for Xanadu comes due. Who wanted this albatross to begin with? Northern NJ does not need any more retail space. The Meadowlands does not need to be revitalized because it was never economically vital in the first place — it’s a swamp!