The recent election of Chris Christie as governor could impact the direction of Xanadu Meadowlands, the $2.3 billion retail/recreation facility being built on Route 3 in East Rutherford.
Despite being under construction for five years, Xanadu still isn’t completed and its opening date has been pushed back several times.
Xanadu developer Colony Capital now hopes to open the attraction sometime in the second half of 2010, but that will depend on Colony’s ability to raise an additional $500 million to finish construction.
Christie may be less willing to play the role of cheerleader for Xanadu when he takes over in January.
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But Xanadu has been kept afloat, in part, due to support from the governor’s mansion. For the past four years, Gov. Jon Corzine has been among Xanadu’s biggest champions. His faith in the project helped bolster political support for the commercial development.
The project would include an indoor ski slope and many restaurants and shops.
But Christie, a Republican who defeated Corzine earlier this month, may be less willing to play the role of cheerleader for the project when he takes over in January.
Maria Comella, Christie’s spokesperson during the transition, did not respond to several calls seeking comment last week.
Still stalled
When it was first approved in 2003, Xanadu was expected to be a major economic boost to the Meadowlands region, which includes Secaucus.
The attraction was expected to create 20,000 temporary construction jobs and 20,000 permanent jobs once completed. But construction has been stalled for months and not a single permanent job has been created, at as time when the country is struggling through a recession and the state is facing high unemployment.
As the economy affects retailers that had initially agreed to open in Xanadu, some of them are backing out of their commitment to sign leases. Virgin Megastore, for example, had been among Xanadu’s original planned tenants. The music retailer dropped plans to open at Xanadu and later filed for bankruptcy and went out of business.
“The economy is definitely having an affect on their ability to sign tenants,” said Jim Kirkos, president and CEO of the Meadowlands Regional Chamber of Commerce. “Every day you hear how this economy is wreaking havoc on retailers from every sector. So will they spend money on leases and renovations now? Many won’t, and the credit markets aren’t providing them with the resources to do that. I think Xanadu can and will still be successful. But they’re going to have to weather it out.”
At least one anchor retailer, Cabela’s, the sporting goods outlet, is sticking with Xanadu, despite the delays.
“Clearly the economy is affecting them and we’re having to adjust our timeline to the situation,” said John Castillo, a spokesman for Cabela’s. “We’re still committed to opening our East Rutherford store. We now hope to open sometime in the third quarter 2010.”
Castillo said the company was sympathetic to Colony Capital’s predicament and that Xanadu’s delays are related to the current economy.
The Christie effect
During the gubernatorial race against Corzine, Christie was very critical of Xanadu. According to published statements, he disagrees with the concept of a combined retail and sports attraction and doesn’t think that such an attraction, even if it were to be built, should be placed in the Meadowlands. He also questions whether Colony Capital will be able to complete construction of Xanadu as it was originally planned.
Next year he’ll have the opportunity to appoint a new chairman to the Meadowlands Sports Complex, which owns the land on which Xanadu is being built.
Carl Goldberg, the current board chairman, will end his term in January. Goldberg, another Xanadu champion, could be replaced by someone less enthusiastic about the project, which could affect Colony Capital’s ability to attract new investors and retailers.
E-mail E. Assata Wright at awright@hudsonreporter.com.