New Developer Could Save Xanadu

MYFOXNY.COM -- If you drive by the Meadowlands, say good-bye to the much-hated Xanadu color scheme and maybe the name Xanadu itself. A new developer could be weeks away from signing on to finish the project, and giving the mall a new look and perhaps a new name.

"That real estate is the most valuable real estate in the state of New Jersey," Gov. Chris Christie said. "We cannot permit individual special interests to make the decision of how that land best be utilized."

Christie's tough talk in Trenton for Xanadu's developers came at almost the same time the beleaguered New Jersey Sports and Exposition Authority in the Meadowlands was learning the details of a possible deal that would get work started on the stalled mega mall.

"If this transaction is successfully completed the Related Companies as the managing member would immediately announce a date for the restart of construction," said Carl Goldberg, the chairman of the Sports and Exposition Authority.

The Related Companies, the giant real estate firm that developed the Time Warner Center in Manhattan, has been meeting in the Meadowlands with Xanadu's primary investor, Colony Capital. Work stopped in March after other investors went bankrupt. Now the Related Companies may invest $500 million and take over management.

"I think they want to retain the same mix of entertainment and retail that was always contemplated for Meadowlands Xanadu," Goldberg said.

The developers of Xanadu already paid the state $160 million to lease the land. The state needs that money. And then there's the money Xanadu jobs will bring.

In Trenton, Christie appointed a committee to make recommendations to fix the financial problems he sees with the gaming, sports, and entertainment industry. Those problems include horse racing, which will cost the state $24 million this year. Right now, Xanadu looks like the bright spot.

A deal between the developers would be completed within the next three weeks, and then work is expected resume quickly.

Then there is the next big thing that may come to the Meadowlands: NASCAR racing. That is something the governor and the Sports and Exposition Authority both want.