Meadowlands project loses funds

TRENTON - The state has cut off funding for a project that aims to convert former landfills to luxury housing and golf courses near the Meadowlands Sports Complex.

In a letter from the State Environmental Infrastructure Trust late Friday, developer EnCap Golf Holdings was told it could not withdraw money from a $296 million loan pool because its primary private backer, Wachovia Bank, has pronounced the project in default of loan standards.

EnCap also has been ordered by the New Jersey Meadowlands Commission to resume clearing the landfills within 15 days or be in default of a 2006 agreement.

The project has been beset by obstacles recently. In May, the state Attorney General's Office declared EnCap in default of its agreement with the state, and in August it was fined more than $1 million for failing to manage the release of methane at the landfills.

Last month, the Meadowlands Commission gave EnCap 60 days to address numerous financial and environmental issues or be taken off the project.

EnCap officials said they remain committed to the project.