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[14 comments]

Critics: Xanadu Stinking Up Jersey Swamp

April 24, 2008

By George Anderson

It's impossible to imagine that Kubla Khan's vision of Xanadu bore any resemblance to the monumental (some would say monstrous) mall project of the same name that is growing on the edge of the Meadowlands swamp in northern New Jersey.

The project, which has been beset with financial challenges, environmental challenges and critics who know ugly when they see it, continues to move forward largely as the result of one man's unwavering commitment to the 2.4-million-squaree-foot entertainment and shopping complex.

That man, Laurence Siegel, is the driving force behind Xanadu, a $2.3 billion project that when complete will include features such as the first indoor ski slope in the U.S., a wind tunnel for sky diving lessons, a wave machine for indoor surfing, and a 287-foot-high Ferris wheel (Pepsi logo positioned prominently in the middle) that will offer riders close-up looks at the Manhattan skyline. Xanadu will also include a movie multiplex with an Egyptian theme (locals scratching their heads over that), dining options galore and acre-upon-acre of upscale shopping destinations.

As a New York Times article pointed out, many who have seen the plans and renderings of the project have reacted adversely. Richard J. Codey, president of the New Jersey State Senate, described it as "yucky-looking." Others, RetailWire has been told by local sources, refer to the project now as "Xanadudu."

No matter the naysayers, Mr. Siegel is convinced that Xanadu's success will dwarf its massive size. "Look at the majestic nature of this space. You're going to come here just for the 'omigod' factor," he told The Times.

As the project has begun to take shape, concerns have been raised about the appearance of the complex. The sight of its multicolored anodized aluminum exteriors led to Sen. Codey's comments.

Mr. Siegel said all would be well when the project is complete. He compared criticisms of Xanadu with "judging the Sistine Chapel after Michelangelo put on the first coat of paint."

The bright colors of the mall will be partially obscured by the Ferris wheel and signs and landscaping will create an effect Mr. Siegel believes will set Xanadu apart (favorably) from all other malls.

According to Mr. Siegel, 60 percent of the mall's space has been leased and that negotiations are underway for 20 more. The density of the population living within a short distance of the mall and the business opportunity it represents has kept tenants from backing out, he said, despite current economic conditions.

Carl J. Goldberg, chairman of the New Jersey Sports and Exposition Authority, said the project would succeed because it's not just another mall. Someone who tries out the indoor wave pool for surfing can buy a surfboard at Xanadu.

"It is not a mall, it will not operate like a mall, and people won't go to it like a mall," Mr. Goldberg said. "That's the difference."

Discussion Questions: What do you think of the Meadowlands Xanadu strategy to create a huge retail and entertainment complex? Are these types of developments in line with where the consuming public is headed?

Discussion Questions



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Comments:

An eyesore? In the Meadowlands? Surrounded by sports arenas and other facilities that have not exactly won any architectural prizes? This sounds like a positive development for the area, assuming the right kind of tenant mix. The Mall of America has demonstrated that the right kind of multi-use project done on a massive scale can succeed (in fact, it's doubling in size) and there's nothing else like it in the U.S. Surely the New York market--with its population density, tourism base and transportation infrastructure--can support a similar concept.

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Richard Seesel, Principal, Retailing In Focus LLC

Hmmm.... Have you looked at the Nielsen ratings for top TV show, top movie, etc., lately? America loves the garish, trendy and absurd. So it'll probably do okay.

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Warren Thayer, Editor & Managing Partner, Frozen & Dairy Buyer

Having once resided in the surrounding area of where this complex is planned, I see more problems than just being an 'eyesore'.

This is already an overly congested part of the Hudson shoreline. Traffic will be a nightmare and everyone with businesses or residential homes within a 3 mile radius will be terribly inconvenienced.

I am not against an entertainment complex but not in this area. I know the developer is trying to attract the New York audience, but people are willing to travel for something they enjoy. I also want to add that the costs associated with this type of entertainment in the area proposed will probably be too expensive for the majority of 'thrill seekers' and their families.

'VVtrain'

Traditional Malls for the most part have been losing market share and have become generic and are considered by most to be in need of "reinvention." Though this is extreme and not recommended for your typical suburban shopping center it does address some needs that local centers have which are; 1. Shopping that is interesting, fun, fresh, and unique 2. Shopping that appeals to males (50% of the population that is generally ignored by shopping centers) 3. Suburban shopping that appeals to 25 to 40 year old singles with money (and they have a lot of very disposable money). So pundits should get over the architecture and attempt to learn something from this center and how it performs.

Michael Tesler, Founding Partner, Retail Concepts

While the concept/design of this new mall may be considered hideous at best, its chance of success are probably better than many developments. I feel that as the dollar continues to decline and the current recessive economy continues on into next year, more and more shoppers will be abandoning conventional malls and shopping.

More and more I see growing success in 'destination' shopping where people go to not only purchase product(s), but to be entertained as well. Here in the Northeast we have L.L.Bean and the Freeport shops, Cabelas, Kittery Trading Post and the shops on route 1, The outlets in North Conway N.H. and more. There, business is growing because more than shopping is available.

Call it a mini-vacation resort if you will, but I believe these shopping/entertainment venues will soon come to replace the traditional mall setting. Perhaps Xanadu is a little overzealous in its design, but the concept is right on the mark.

Dan Soucy, sales manager, Big Lots Inc.

For many Americans, shopping is entertainment. This type of complex, while an eyesore, will appeal to a lot of families and teens looking for destination shopping. I live and work by the Mall of America and was very skeptical when it was proposed but must admit it has been a huge success.

Also, even for a dedicated mall avoider, when my kids were young we spent more weekend days at MOA than I care to admit. When it is raining and the kids are antsy this type of complex is just what many parents look for. The forecast for MN this weekend is ~40 and rain; MOA will be packed.

Tom McGoldrick, Director of Research and Consulting, Questar

I can't comment on the appearance or the location of this particular development (and if you think the scale of this is over the top, check out the plans for Destiny USA in Rochester--if it's even still underway). What I can say is, at least someone is trying something to remake the concept of a mall. Even the "innovative" lifestyle centers that the industry was pointing to as its future aren't doing all that great now, and I, an original mall rat straight out of "The Valley" (before there was a Silicon Valley), can't hardly name the last time I was in a mall. Something has to be done to make malls engaging again. Xanadu may not be it, but I give points for trying.

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Nikki Baird, Managing Partner, RSR Research

Nikki is right. Destiny USA is far more ambitious. This seems to be the wave of somebody's version of the future but then again, remember what inspired Coleridge to write Xanadu--I think it was opium.

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Ryan Mathews, Founder, ceo, Black Monk Consulting

Despite the design concerns, the combination of cool & unique entertainment with great stores should create a success for Xanadu. This project reminds me of, and is dwarfed by, the mega hotel/shopping/entertainment projects in Dubai. With the economy likely to be tough for quite some time and making vacations less affordable, residents in the NY area will be glad for a unique "almost vacation" getaway, similar to Mall of America. I believe we will see more of these projects over the years and they will certainly put pressure on existing malls to reinvigorate their offerings to compete for share of ever-shrinking time and wallet.

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Mike Osorio, Global VP Learning & Development, Chief Learning Officer, DFS Group

If you build it, they will come. Americans love the new, the garish and to be entertained. Xanadu seems to offer all of the above.

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Max Goldberg, Founding Partner, The Radical Clarity Group

"The bright colors of the mall will be partially obscured by the Ferris wheel"

Heh, heh ... you gotta love this guy.

'notcom'

Xanadu has a long history, dating from 1996 when the Mills Corporation proposed building a shopping mall in the area. Because of wetlands restrictions and a long sordid history of environmental damage to the Hackensack River wetlands, the Hackensack Riverkeeper organization mobilized some very effective lobbying with then-Governor McGreevey.

The result? Xanadu was authorized, but the developer had to pay for substantial environmental preservation. The environmental preservation expense (and the developer's enormous lobbying expenses, along with the crushing time delay) meant this compromise: the mall will be huge, but the developer will pay the huge environmental expenses.

The Mills Corporation (not just the Xanadu project) was bought out in early 2007 after they ran into substantial financing obstacles. Xanadu's pre-occupancy lease signups are lagging, which is a major financial issue.

Mark Lilien, Consultant, Retail Technology Group

I think the time is ripe for something new in Shopping Malls. Enabling the whole family to experience a pleasurable destination that combines entertainment, sports and shopping sounds like a winner to me.

With the demographics to support a mega project, the timing couldn't be better. Metro NY/NJ will make this a day trip must for the millions that seek cheap diversion in their own backyard. I hope all the doomsayers have to eat their words a year from now.

'Xanaduman'

Looking at things from afar, one can see how the mall concept is slowly evolving back to what it first tried to improve upon--Main St., Downtown. These latest incarnations of adding ski slopes and roller coasters, etc, are signs that the mall concept is fading.

It is also sad, particularly in this day and age, that the mall's rely on massive amounts of energy to keep them cool in the summer and warm in the winter. The catering to the automobile is also discouraging, when one looks at where we get the oil, what happens when we burn it, and the depressing visual nature of a city designed for car users. With these factors, even if Xanadu is extremely popular and profitable, it is a failure.

We will come to see (many have) that the ultimate retail experience/civic design is Main Street or a downtown, or a city...all connected by a simple trolley system (these million dollar, computerized, high-tech "light rail" systems seem like a scam when compared to traditional trolley systems).
What is also good about traditional Main Streets and cities is that the citizens own them,meaning the laws of the constitution apply.With a mall,and it's private owners,it is kingdom overlorded by them,any speech or people that they dont like can be removed.This is not only unAmerican,it adds to the already stale and sterile feeling of these places.

'DBB22'

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