The developers of the $2bn Xanadu shopping mall and entertainment complex in New Jersey need to complete the project or turn it over to the state, a report by advisers to Governor Christopher Christie said.

The planned 2.3m sq-ft mall located opposite Manhattan in New Jersey’s Meadowlands is years behind schedule and “appears to have failed,” said the report released by Christie’s office today.

Los Angeles-based investment firm Colony Capital is leading a partnership to develop Xanadu, which is being built next to Giants Stadium and was originally scheduled to be unveiled in November 2008. Debt holders have suspended additional funding, the Christie transition team report said.