NORTH JERSEY – Triple Five, the owner and developer of Minnesota’s Mall of America, has signed a letter of intent to take over Meadowlands Xanadu on Route 3 in East Rutherford. Once expected to be a premier shopping, entertainment, and sports complex, the $2.3 billion Xanadu project has for years been mired in problems related to its financing.
The 4.8 million square foot complex was designed to feature five theme-oriented shopping and entertainment districts. Envisioned to be a cross between an indoor theme park and a mall, Xanadu was supposed to feature a 287-foot Ferris wheel, an aquarium, an indoor snow dome for skiing, two skydiving tunnels, movie theaters, and up to 200 stores packed into its 2.3 million square feet of retail space.
It was also expected to fuel the local economy, adding 20,000 temporary jobs during the construction phase and another 20,000 permanent jobs once completed.
In August, however, a consortium of lenders that had financed Xanadu wrested control of the project from Colony Capital, a private equity firm that had been developing the project.
Triple Five is now the latest developer to step in to attempt to save the $2.3 billion project. The Mall of America Developer has, according to Gov. Christopher Christie, signed a letter of intent with the lender group to complete Xanadu.
“I promised the people of Bergen County and the State of New Jersey that action would be taken to revitalize the complex at the Meadowlands and.I am delivering on that promise,” Christie said in a release last week. “This administration fully supports the progress being made and will be a true partner at every step in transforming the Meadowlands from a financial and economic drain into a vibrant destination so that New Jerseyans can begin to reap the benefits of the job creation and much-needed tax revenues this project will provide.”
“We’re glad to have Triple Five’s long-term investment in New Jersey and I am confident that the developers who created the most visited mall in the world, due to their vision and innovation, will transform the Meadowlands into New Jersey’s very own Mall of America,” Christie added.
The governor’s press office said the agreement between Xanadu’s lenders and Triple Five came after a months-long review and negotiation process. No details of Triple Five’s involvement have been released publically. The company is, according to the governor’s office, expected to unveil specific plans for Xanadu sometime next year.
In addition to Mall of America, Triple Five also owns the West Edmonton Mall in Canada. The company operates most of the non-retail venues in its shopping centers, including amusement parks, water parks, aquariums, miniature golf courses, hockey rinks, cinemas, concert event centre, specialty restaurants, live dinner theatres, and hotels. – E. Assata Wright
BREAKING: Mall of America to take over stalled Xanadu project
