BREAKING NEWS:
ENCAP FILES FOR BANKRUPTCY!
NORTH ARLINGTON - The Leader Newspapers is reporting that EnCap Holdings, the controversial and embattled developer chosen to remediate the Meadowlands and construct nearly 5,000 units of housing has filed for bankruptcy effectively ending the company's nine-year relationship with the New Jersey Meadowlands Commission (NJMC).
Earlier this week, EnCap's contract was terminated with the NJMC after it was determined the financially strapped developer lacked the finances to move forward with Phase 1, much less Phase 2 which effects North Arlington.
This week's termination by the NJMC all but sealed the fate of EnCap and local North Arlington officials expect the bankruptcy proceeding to effectively end the lawsuit with the borough.
"EnCap for better or for worse owns substantial parcels in the community. These are some of the tangible assets they did acquire in this process. If another developer steps forward, one would think they would try to sell these parcels for market values far beyond the current assessed values," noted one borough insider familiar with the company's current holdings.
Earlier this year EnCap stood to lose control of several properties in a tax lien sale to be conducted by the borough. In the eleventh hour, the Trump Organization shelled out some $300,000 in back payments.
Local officials were holding the May meeting of the Mayor & Council when the announcement was released. NA TODAY will post whatever information that becomes available.
