Facility Notes

Report Suggests New Jersey Needs To Tell Xanadu Owners To Open Or Surrender Property

In N.Y., Peter Applebome notes a report prepared by New Jersey Gov. Chris Christie's administration's transition team Friday said the Meadowlands' Xanadu development "appears to be a failed business model" and New Jersey needs to tell the owners to "open or surrender the property." The report read in part, "There is no leasing plan making material on-site progress. The physical activities of construction are at a standstill, if not abandonment. The construction loan is out of balance. There are no monies readily available to finish construction of public areas or tenant improvements. Most, if not all, of announced major tenants have an 'escape clause' solely dependent on leasing -- or lack thereof." Project officials contend that the business model is "sound and it has been delayed because two of its lenders went bankrupt." Applebome notes the options are "not attractive: hunker down and hope the project makes more sense in a year or two, have the state sue the developers to take back the property, find a really rich new developer or knock it down and forget it" (N.Y. TIMES, 1/25).

ALIVE & KICKING: In S.F., John Cote noted the 49ers are "charging ahead with plans to build a 68,500-seat stadium in Santa Clara," but the NFL "isn't putting all its eggs in the Silicon Valley basket." The league, "which the 49ers are counting on to help fund a new stadium, has weighed in on San Francisco's plans to redevelop Candlestick Point and the shuttered Hunters Point Naval Shipyard." NFL Senior VP/Strategic Planning Neil Glat in a January 12 letter regarding the S.F. stadium "stressed the importance of four items the league deems 'critical to providing access' for football fans: a bridge over Yosemite Slough, a new interchange at Highway 101 and Harney Way, adequate parking near the stadium, and public transit infrastructure improvements." Cote wrote that "doesn't exactly sound like the league has given up on San Francisco" (S.F. CHRONICLE, 1/24).

THAT'S THE TICKET! ESPN.com's Dan Rafael reported more than 20,000 of the approximately 40,000 tickets available for the March 13 Manny Pacquiao-Joshua Clottey bout at Cowboys Stadium "were gobbled up" in just the "first three hours of public ticket sales" on Saturday. Tickets ranged in price from"$50-700. Top Rank Chair Bob Arum said he and HBO Sports President Ross Greenburg are "very gratified that the public has responded like they have, and we are happy for our partner" Cowboys Owner Jerry Jones. Arum said that if the "demand for the fight continues the capacity of the stadium ... can easily be increased" (ESPN.com, 1/23).