The failed EnCap proposal for luxury housing and golf courses on a Bergen County landfill has cost Lyndhurst, N.J., a three-notch downgrade from Moody’s Investors Service that affects $53.5 million of long-term debt.

Moody’s, in a statement late Wednesday, said the drop to Baa1 from A1, with a negative outlook, reflects “a significant reduction in the tax base due to a failed redevelopment project, pressured financial operations with negative reserve levels net of deferrals, reliance on cash-flow notes, [and] use of one-time revenues.” Messages seeking comment were left Thursday with Lyndhurst Mayor Richard DiLascio.

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