The suit was filed Thursday by Hartz Mountain Industries, whose proposal with partner Forest City Enterprises was among the final bids to build on the site, a few miles west of New York City. The suit names Mills; its development partner, Mack-Cali Realty Corp.; and the New Jersey Sports and Exposition Authority, which owns the site and chose the winner.
Ground will be broken on Meadowlands Xanadu before the end of the year, said George Zoffinger, president and CEO of the Sports and Exposition Authority.
"We think the issues raised in the lawsuit are frivolous,” he said. “This is nothing more than the other developer having sour grapes for not winning.”
In the weeks leading up to the final selection, Hartz placed ads in local newspapers criticizing the Mills plan's retail component as too large.
Justin P. Walder, the attorney representing Hartz, declined to speak to SCT Newswire about the suit, which charges that "the sports authority failed to involve the public in the [request for proposals] process and violated its bylaws by allowing construction of a major retail center on its property," according to New Jersey's Star-Ledger.
"In our opinion, [the sports authority] dealt with everyone equally and fairly," countered Laurence C. Siegel, Mills’ chairman and CEO, in an interview with SCT Newswire. "The state did a really good job of being absolutely circumspect on their [request for proposals] process."
Siegel calls the Meadowlands "the best site in the world" because of its proximity to Manhattan.
Meadowlands Xanadu calls for 594,000 square feet of retail, 1.7 million square feet of entertainment and 1.8 million square feet of office space. The entertainment components include ESPN Skate Park, Meadowlands YMCA and a minor league baseball park.
Construction will be delayed at least until a New Jersey county court holds an April 25 hearing on the suit, the Star-Ledger reported.