From the Record:
Trump may rescue Encap project
Real estate developer Donald Trump is in serious negotiations to take over the beleaguered Meadowlands EnCap golf and housing project, according to three sources familiar with the talks between Trump’s group and the bank syndicate managing the development.
An announcement could come as soon as the end of the week, the sources said Tuesday.
Trump — a Manhattan-based entrepreneur with a long history of interest in the Meadowlands — would develop a single high-end golf course at the EnCap site to be on par with his acclaimed Trump National Golf Club in Bedminster. Also in the works is a scaled-down residential housing plan to replace the 2,500 units that had been planned for Lyndhurst and Rutherford, and possibly a luxury hotel. The EnCap plan called for two golf courses.
According to the sources, the bank syndicate — which includes Wachovia, Bank of America, Commerce Bank and iStar Financial — contacted Trump two weeks ago in hopes of enticing him to take over the deal from EnCap and its parent company, Cherokee Investment Partners. The banks have more than $400 million committed to the project via letters of credit and loans, so a collapse of the plan without an alternative would damage the group’s bottom line.
EnCap was declared in default by the New Jersey Meadowlands Commission in May, based on its failure to submit a revised budget and an additional $16 million in security to ensure closure of the landfills in case the project was aborted.