Meadowlands Xanadu Proposal Greatest Assemblage of Entertainment and Recreation All Under One Roof Selected by New Jersey Sports and Exposition Authority
02/12/2003 Category: Leasing and Development
Mills, Mack-Cali Realty Corp. and New York Giants Collaborate on $1.3 Billion Family Entertainment Concept to Complement Meadowlands Sports Complex
CRANFORD, NJ — February 12, 2003 — The Mills Corporation (NYSE: MLS) and Mack-Cali Realty Corporation (NYSE: CLI) announced today that their Meadowlands Xanadu proposal was selected by the New Jersey Sports & Exposition Authority, providing them with the exclusive right to negotiate a developer's agreement, for the development of a $1.3 billion family entertainment and recreation complex with an office and hotel component at the Continental Arena site in East Rutherford, New Jersey. The Xanadu team is comprised of The Mills Corporation, Mack-Cali Realty Corporation and the New York Giants.
Meadowlands Xanadu will envelope visitors with sights, sounds and experiences that are new and imaginative. The Xanadu proposal features the Snow Dome, America's first year round indoor Alpine ski resort with real snow and chair lifts. Other entertainment and recreation features include The House of Blues, Cheesecake Factory, UnderWater World aquarium and a PBS Kids Pavilion. The entertainment and recreation redevelopment effort is expected to add to the appeal of the Sports Complex and enhance the Giants' bid to bring a future Super Bowl to the Meadowlands.
Mills Chairman and Chief Executive Officer Laurence C. Siegel said, "This award re-affirms that The Mills Corporation is the country's leading development company. We've taken our proven strategy of developing innovative concepts, anticipating trends and engaging consumers' imaginations and created a living masterpiece for the Meadowlands community. Meadowlands Xanadu is our crown jewel, and the bellwether by which all other developments will be measured."
Meadowlands Xanadu's 4.76-million-square-foot complex will feature unprecedented innovation with a family entertainment destination comprising three themed zones: sports/recreation, kid's activities and fashion. The project will also include office and hotel space totaling 2.2 million square feet, consisting of four 14-story, 440,000 square-foot office buildings and a 520-room hotel with conference and exhibition facilities. "Mack-Cali, which has a long history in developing premier office properties, is well positioned to take advantage of Xanadu's broad base of entertainment and recreation uses to attract an excellent tenant base. As a New Jersey-based company, we are very proud of Xanadu, and are confident that it will benefit both the Sports Complex and the Northern New Jersey region," said Mack-Cali Chief Executive Officer Mitchell Hersh.
In addition to the Snow Dome indoor ski resort, Xanadu will feature a baseball park to house the Bergen Cliff Hawks minor-league baseball team and the Bergen River Dogs professional lacrosse team. Additional active and spectator activities include ESPN Skate Park (extreme wheel sports), an indoor surfing wave, a grand movie palace, a small format live entertainment venue and a Wildlife Museum. Xanadu will also include the Meadowlands Area YMCA, with multi-purpose areas, spaces dedicated to basketball and gymnastics, an aquatic center, locker rooms and a child care facility.
Xanadu will also include Wannado, a revolutionary, 150,000-square-foot entertainment concept where children can role-play adult professions, such as news reporter or television producer, airline pilot or cruise ship captain, doctor, circus performer, banker or dozens of other jobs while learning about earning and spending in an entertaining environment. Called "City of Children" in Mexico City, it has been a smash hit since its opening in 1999 and features leading global brands as part of the experience.
The fashion area will provide a luxury spa, cooking school and exclusive European retail, such as Zara, Mango, Mexx, and Carolina Herrera, to support the recreation and leisure activities.
As partners with Mills and Mack-Cali, the Giants expressed similar enthusiasm for Xanadu. "The Xanadu proposal provides maximum entertainment and recreation to the region and is a perfect complement to the Giants organization. We believe Xanadu will seriously enhance our opportunity to bring a Super Bowl to the Meadowlands in the near future," said John K. Mara, executive vice president and general counsel of the New York Giants.
Meadowlands Xanadu will create more than 19,000 construction jobs, resulting in $1.17 billion in estimated personal income. At final build-out, Xanadu will result in more than 20,000 jobs translating to $1.24 billion in income annually. The redevelopment of the arena site will generate more than $133 million per year in state and local tax revenue.
Assuming the completion of a successful development agreement, The Mills Corporation will donate the 587 acre Empire Tract to the State of New Jersey, a significant acquisition of open space and wetlands for the State.
Mills has joint-ventured a portion of its share of the project to its long-time private equity source, Kan Am. The terms of the joint venture call for Kan Am to fund two-thirds of the Mills total equity requirement consistent with terms previously disclosed in the company's public filings.
About The Mills Corporation
The Mills Corporation is a self-managed real estate investment trust (REIT) based in Arlington, Va., that owns, develops, leases, manages and markets a portfolio of 20 retail and entertainment destinations totaling approximately 25 million square feet in 17 states. Currently, the company has five projects under construction and/or development in the United States and two internationally: Toronto, Canada and Madrid, Spain. The company's Internet address is www.millscorp.com.
Mack-Cali Realty Corporation is a leading real estate investment trust (REIT), with a total market capitalization of approximately $4.1 billion. The company owns and manages over 29 million square feet of class A office and office/flex properties, located primarily in the Northeast. As of 9/30/02, Mack-Cali's portfolio was 93.0% leased to approximately 2,000 tenants. Mack-Cali was formed over 50 years ago and has been a publicly-traded REIT since 1994 (NYSE:CLI). The company's Internet address is www.mack-cali.com.
Statements in this press release that are not historical may be deemed forward-looking statements within the meaning of the federal securities laws. Although the companies believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, the companies can give no assurance that their expectations will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. The companies undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The reader is directed to the companies' various filings with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K for a discussion of such risks and uncertainties.