MALL BANKRUPTCY SPURS NEW CONCERN ABOUT THE VIABILITY OF XANADU

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HACKENSACK,NJ –  Just a month after the operators of the Xanadu mega mall in the meadowlands announced their mall would not open this year,  General Growth Properties Inc., the nation’s second-largest mall operator and owners of  Willowbrook Mall in Wayne and Paramus Park Mall, filed for Chapter 11 bankruptcy protection today.

The latest news has spurred Bergen County Republican Party Chairman  Robert Yudin to again call for an investigation into the viability of the Xanadu project and for state officials to protect the taxpayers investment in the massive Meadowlands project 

“Coming on the heels of last month’s announcement that Xanadu will again delay its opening to some time in 2010, I think the problems at General Growth Properties are a warning for state and county officials to investigate the viability of this project before throwing any more public money at it,” said Yudin, a long time critic of the mega mall.  

With hundreds of millions of taxpayer dollars committed to infrastructure improvements to support the huge Xanadu complex, Yudin now questions whether that investment is too risky. 

“General Growth properties is obviously having a difficult time making its malls successful in this tough economic time. Why would the state and county officials not take a step back and take a real hard look at the viability of adding a new mall that is just a few miles from two malls that are now in bankruptcy?” asked Yudin 

Last month Yudin said “Xanadu is turning into the biggest white elephant in state history” and he wanted to know if Gov. Corzine plans to continue to pour money into the questionable project, that has been criticized for its garishness and its inability to secure enough tenants to open on time.  

“Is there going to be a taxpayer bailout for Xanadu? If so, we need to know, now,” said the chairman.   

In April Xanadu announced it was having financing problems and work stopped at the site and construction  equipment was pulled from the site  

Yudin maintains that the Xanadu project was never fully vetted for its viability. Wild promises of jobs and revenue were made, but it is doubtful those promises will ever be realized.”