Exclusive: Meadowlands Xanadu Mystery

EAST RUTHERFORD, N.J. - There are questions surrounding conditions at the Meadowlands project called Xanadu. Fox 5's Barbara Nevins-Taylor went inside the complex for an exclusive  look at the issues that have stalled progress at the complex.

Watch the vidoe, left, for the full report.

Text of Barbara Nevins-Taylor's report:

There is a mystery at Xanadu. Human feces was found in the entertainment complex. A labor leader tells Nevins-Taylor that he believes a group or one person or a few are sabotaging the job. Documents Fox 5 News obtained show state inspectors cited Xanadu for unsafe and unsanitary conditions with fixtures filled with human waste on several levels. They found buckets have been used as urinals throughout the complex.

Angry laid-off workers may not be the culprit. A representative for the Building and Construction Trades Council says "it's very controversial and there are people who feel that it (the complex) shouldn't be there."

Nevertheless, inspectors said the fixtures must be removed and replaced in order to get a certificate of occupancy. Apparently that's been done. Xanadu, in a statement, said all violations including minor ones are required to be corrected by other contractors yet issues continue to mount at Xanadu. Most work was shut down this spring. The opening was delayed until next March after one of the investors failed to make payments leaving a $125 million deficit.

Colony Capital- the primary backer- is suing the investor that pulled out and looking for additional money. Due to the financing trouble construction is likely to be delayed again. It is not expected to start up again until at least January 2010.

Plans call for a giant ferris wheel like one in London. But state inspectors are questioning the design of the footing the pedestals for the giant wheel are in. They fear it's too close to the NJ Turnpike. They are worried about an accident and evacuation procedures for people on the wheel. Public access underneath to the wheel is also problematic.

Fox 5 asked a construction safety expert to take a look. He says if a tanker truck or something catches fire or explodes, you could have those fumes blowing into the ferris wheel. And there is always the possibility that something from the ferris wheel could drop.

The next few months are likely to be pivotal as Xanadu officials continue to get financing, clean up the mess inside and address safety issues and fees.

MEADOWLANDS XANADU