Bergen County Republicans, Inc.

DONOVAN CALLS FOR RESTRUCTURING OF XANADU AGREEMENTS; SAYS SPORTS AUTHORITY SHOULDN'T
BE A TAX HAVEN FOR PRIVATE DEVELOPERS

For immediate release: May 25, 2006
contact: Alan C. Marcus/201-902-9000

Any sale or restructuring of Xanadu's ownership should trigger a complete restructuring of the project's fiscal obligations to the host community and region, according to Republican County Executive candidate Kathleen Donovan.

Referring to reports in the Wall Street Journal that Xanadu is going to cost more, yield less to the owners and be delayed by as much as a year and that owner Mills Corp. is exploring the sale of the entire company Donovan said, "Now is the time for the state, county, New Jersey Sports and Exposition Authority and East Rutherford to restructure it's agreements with Mills/Xanadu and take steps to reduce the environmental, infrastructure and financial impacts on East Rutherford and the region."

Donovan emphasized that private development on Sports Authority property should be taxed just like all private development throughout New Jersey. The Sports Authority should not be used as a tax haven which ultimately shifts the burden from the developers to local property tax payers.

According to Donovan, "Xanadu has been a fantasy from the start. Billed as an entertainment complex and destination point, Xanadu has morphed into nothing more than a regional shopping mall. There's no entertainment. No minor league baseball. Nothing more than a mall which new owners will undoubtedly want to redesign to reflect other malls with anchor stores and tenants. The only difference between Xanadu and Garden State Plaza in Paramus will be that the Plaza is at the intersection of two highways and Xanadu will be served by only one choking traffic throughout the region. Any change in Xanadu must include improvements to the regional transportation network.

"Moreover, the Plaza pays local property taxes. Xanadu is protected from paying it's fair share by its landlord the Sports Authority. East Rutherford should be made whole. No sweetheart tax "deals" for the developer. Xanadu and all other tenants of the Sports Authority must be required to pay their taxes in full so that the host municipality, county and most importantly the local taxpayers aren't cheated."

Donovan said that she would use the county's full regulatory powers to make certain that Xanadu and other major developments meet with the approval of local officials and provide benefits to the region without negative environmental and transportation impacts.

"Xanadu is going to be a full partner with the region, mitigating it's traffic and environmental impacts and paying full taxes to East Rutherford and the county or we're going to put that genie back in the bottle," Donovan warned.

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