From NorthJersey.com:
N. Arlington: It’s over with EnCap
North Arlington pulled out of its deal with EnCap on Wednesday and set about searching for another developer who would save the town from financial ruin.
“As far as the borough is concerned as of 9 a.m. today, there is no agreement with … EnCap,” said Robert McGowan, an attorney for the borough.
In a statement, McGowan wrote that EnCap missed a $1 million payment due to the town Saturday. He said that event made it clear to borough officials that the developer did not have financial backing for its 1,600-unit Arlington Valley project.
He pointed out that state financial regulators have already frowned on EnCap’s plan to finance its separate garbage-to-golf project in Lyndhurst and Rutherford through a $350 million bonding scheme. The developer had planned to finance the North Arlington project with a similar plan.
“EnCap is clearly in no financial position to proceed on this project,” said Mayor Peter Massa. “They cannot execute this agreement. I don’t think they ever were in a position to execute this agreement.”
Just curious, did Arlington officials do any due diligence on EnCap before they made an agreement?
JM