Newark, NJ – News reports are surfacing that the developer of Meadowlands Xanadu, a half-finished shopping mall in New Jersey that was to include indoor skiing and snowboarding, may lose control of the project to creditors.
According to Bloomberg News, developer Colony Capital LLC, is running out of time in talks to renegotiate its credit supplied by lenders including Credit Suisse Group AG, Capmark Financial Group Inc. and an affiliate of Fortress Investment Group LLC, the parent company of ski resort operator Intrawest LLC. Sources close to the discussions indicate that lenders may take over the project as early as this Monday.
Originally set to open in 2007 as North America’s first indoor skiing complex, the colossal 2.2 million square-foot, $2 billion Meadowlands Xanadu was started by Virginia’s Mills Corp., which operates a similar facility in Madrid, Spain. Colony took over the project in 2006 after Mills Corp. ran out of money. Construction has been plagued by delays and financial difficulties since starting in 2005. It was to feature sports, leisure, shopping and family entertainment in the Meadowlands area across the Hudson River from New York City. The project was to be anchored by the Snow Dome, a 780-foot ski slope for skiing and snowboarding, complete with equipment rental, a lodge and associated amenities.