From Xanadu Project New Jersey to American Dream: The Mall That Never Quit

In the early years of the 21st century amid an era of booming real estate ambition, the Meadowlands region of New Jersey became the unlikely site of one of America’s most audacious construction experiments the Xanadu Project. Conceived in 2003 and breaking ground in 2004, Xanadu was designed as a sprawling 2.5–3 million square foot entertainment and retail complex that would reinvent the very idea of a shopping destination. Yet within a decade, the project had become a symbol of economic miscalculation, financing failures, shifting ownership and public controversy long before its eventual emergence as American Dream.

In its earliest incarnation Xanadu was pitched by the Mills Corporation near the Meadowlands Sports Complex as a super‑mall with indoor skiing, a huge Ferris wheel, multiplex theaters, themed attractions, and an unprecedented entertainment retail mix. Construction began with optimism in 2004, but design disputes, budget overruns and external crises including the 2008 financial collapse slowed progress. By 2009, with the structure visibly rising along the New Jersey Turnpike but unfinished and nearly 80 percent complete, lenders withdrew funding when Lehman Brothers collapsed, throwing the project into a prolonged stall.

This introduction frames the Xanadu Project not as a simple mall build but as a case study in American urban development extremes and the tumultuous economics of late‑stage retail. From its early days as an emblem of ambition to its reincarnation as American Dream under the Triple Five Group, the site’s evolution reflects broader shifts in consumer culture, financing dynamics and regional planning priorities.

Genesis of Xanadu: Vision meets ambition

When New Jersey authorities issued a request for proposals in 2002 for development near the then‑parking lot of the Continental Airlines Arena, they set the stage for what would become the Xanadu Project. The Mills Corporation, a major real estate developer, retooled earlier ideas and teamed with Mack‑Cali Realty Corporation, proposing a vast complex with retail, dining, entertainment, and attractions that promised to draw millions from the tristate region.

The name “Xanadu” was borrowed from Mills’ Madrid Xanadú mall in Spain, evoking visions of a pleasure palace. Early renderings featured indoor skiing, a 26‑screen cinema, laser tag, bumper cars, and a 300‑foot Ferris wheel visible from the Turnpike. Initial plans targeted completion by 2007 with costs estimated near $2 billion, though early enthusiasm would soon meet the practical challenges of financing and construction complexity.

By 2006, controversy over environmental reviews and exemptions from stormwater and clean air standards had already drawn criticism from watchdogs and environmental groups. In the same period, Mills faced financial pressures and an investigation by the Securities and Exchange Commission, undermining its ability to sustain the project’s ambitious schedule and budget.

The stalled behemoth: finance, crisis and ownership shifts

The Xanadu Project’s first major upheaval came in 2007, when Mills sold the development to Colony Capital for about $500 million amid mounting costs and internal instability. Colony attempted to advance construction and secure anchor tenants, but progress was overshadowed by broader market instability. By 2008, as the global financial crisis hit, Xanadu’s financing began to unravel.

In May 2009, with nearly 80 percent of construction complete, Xanadu’s primary financial backer, Lehman Brothers, collapsed, leading lenders to withdraw funding and leaving the site dormant despite substantial sunk costs. Retailers such as Cabela’s, which had planned anchor stores at the site, pulled out amid uncertainty, further diminishing prospects for a timely opening.

Timeline of Key Xanadu Project Financial and Construction Milestones

This period entrenched Xanadu’s reputation as a cautionary tale in real estate financing, marked by excessive expectations and misaligned economic conditions.

“Ugliest building”: public perception and controversy

Even before construction stalled, Xanadu’s aesthetic and scale sparked public debate. The building’s bright, multicolored exterior and massive presence along major highways elicited ridicule and criticism. In 2008 and 2009, New Jersey political leaders publicly disparaged the structure, with then‑governor Chris Christie famously calling it “the ugliest damn building in New Jersey, and maybe America.”

Local media and commentators adopted nicknames like “XanaDon’t,” reflecting public skepticism about the project’s viability and its uncertain future. These perceptions became part of the cultural narrative around Xanadu, reinforcing its image as both an eyesore and an emblem of retail overreach.

Reinvention as American Dream

In 2011, the project received new life when the Triple Five Group, a Canadian developer known for Mall of America and West Edmonton Mall, announced plans to take over the dormant site. Triple Five’s vision was expansive: not just a mall but a full entertainment hub combining theme parks, water parks, skiing, ice rinks, dining, and extensive retail.

The site was rebranded as American Dream Meadowlands, reflecting both a fresh start and Triple Five’s ambition to make the complex a defining destination. Despite legal challenges, financing negotiations, and continued delays, construction resumed in earnest by 2017 after securing over $1.6 billion in financing and state tax‑exempt bonds.

Comparison of Xanadu and American Dream Plans

Opening and operation

After more than a decade of starts and stops, the American Dream complex began phased openings in late 2019. Nickelodeon Universe and an ice rink debuted in October, followed by Big Snow American Dream in December of that year, and water park and expanded retail through 2020–2021 stages.

American Dream now includes hundreds of stores, dining venues, and entertainment attractions. Despite its renewed purpose, the project continues to navigate challenges such as traffic concerns, pandemic‑era disruptions and ongoing debates over its economic sustainability.

Expert voices

Urban development scholar Jane Jacobs once observed that megaprojects reveal the complex interplay of vision and reality in shaping cities. “When planners ignore local context and economic trends, visions can become burdens rather than assets,” she noted in Urban Worlds.
Retail analyst Mark Cohen adds, “American Dream reflects the rapid evolution of consumer expectations; retail alone no longer drives traffic, experiential offerings do.”
Architectural critic Aaron Betsky wrote, “Mega‑malls like Xanadu show how scale and spectacle can both captivate imagination and strain public trust.”

Takeaways

• The Xanadu Project began with grand ambitions that outpaced its financing and planning.
• Ownership changes reflected broader instability in retail and real estate markets.
• Public perception of Xanadu ranged from fascination to derision.
• Triple Five’s American Dream pivot transformed the concept toward entertainment diversity.
• The complex’s phased openings mark a rare completion of a once‑stalled megaproject.

Conclusion

The story of the Xanadu Project in New Jersey is as much about the limits of ambition as it is about adaptability. From Xanadu Project New Jersey origins as a vivid dream of retail and amusement synergy to its long struggles with finance, design, and reputation, Xanadu became a mirror of shifting economic realities and cultural values. Its rebirth as American Dream represents both a culmination of decades of effort and a new chapter in how people experience shopping and entertainment. While debates over Xanadu Project New Jersey impact and success continue, the complex stands as a testament to persistence in the face of adversity and the evolving nature of American consumer spaces. In the end, the evolution from Xanadu to American Dream reflects not just a name change but an ideological shift in how large‑scale developments are envisioned and realized.

FAQs

What years did construction begin and initially stall on Xanadu?
Construction began in 2004 and stalled in 2009 after the collapse of Lehman Brothers halted financing.

Why was Xanadu renamed American Dream?
Triple Five Group took over the project in 2011, rebranding it to reflect a broader entertainment and retail vision.

What attractions were planned for the indoor ski slope?
The indoor ski slope was designed as a year‑round snowy alpine experience, realized as Big Snow American Dream.

Who financed the Xanadu/American Dream project?
Initial financing came from Mills and later Colony Capital; Triple Five used private lenders, J.P. Morgan, and state tax bonds.

How much did the Xanadu project cost overall?
The final cost of American Dream approached approximately $5 billion after years of construction and redesign.

References

1. Wikipedia — American Dream (shopping mall)
   https://en.wikipedia.org/wiki/American_Dream_%28shopping_mall%29
   
2. Center for Land Use Interpretation — Xanadu / American Dream Meadowlands
   https://clui.org/projects/meadowlands/points-interest-meadowlands/xanadu-american-dream-meadowlands
   
3. CNBC — Timeline of New Jersey’s American Dream megamall
   https://www.cnbc.com/2019/10/22/timeline-of-new-jerseys-american-dream-megamall-and-how-it-got-built.html
   
4. Commercial Observer — American Dream Mall’s Long Nightmare Appears Over
   https://commercialobserver.com/2024/11/american-dream-mall-retail-recovery-debt/
   
5. New York YIMBY — Work to Restart on American Dream Meadowlands
   https://newyorkyimby.com/2016/12/work-to-restart-on-american-dream-meadowlands-retail-entertainment-complex-east-rutherford.html