Business & Tech
State Agency To Vote Again On American Dream Bonds
Triple Five is trying to secure $1.1 billion in financing to complete the American Dream Meadowlands.
The New Jersey Sports and Exposition Authority is expected to re-approve the issuance of $800 million in tax-free bonds Thursday to finance the long-stalled American Dream Meadowlands project.
The authority voted last month to give developer Triple Five approval to approach the Wisconsin Public Financing Agency to work together to issue the $800 million in bonds to finance the project. The New Jersey Economic Development Authority authorized the issuance of $350 million in bonds, bringing the total to about $1.1 billion.
The agenda for the meeting Wednesday does not state why another vote is being taken.
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The New Jersey Alliance for Fiscal Integrity filed a lawsuit against the authority earlier this month. The alliance contends that the bond agreement that exists is an “illegal shell game” and wants to overturn the authority’s Aug. 25 vote to issue the bonds for the $5 billion project.
The authority agreed to issue the bonds if the Wisconsin Public Finance Authority purchases them and the bond buyers assume all the risk should the project fail.
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The non-profit claims the authority violated state lawn by not disclosing the principal terms of the bonds, including their interest rates and maturity dates.
The alliance also claims that the authority violated an executive order requiring private bonds be sold through a competitive bidding process rather than a no-bid selection of the Wisconsin agency.
The American Dream Meadowlands, which has been called the "most expensive retail project on earth," could cost as much as $5 billion when it is complete.
Work at the site stopped in November when the sale of the bonds was postponed. The 90-acre campus was expected to open next summer, but now that date has been pushed back to the summer of 2018.
Redeveloping the site has taken more than a decade and gone through two previous attempts, the most recent was the failed Xanadu project.
American Dream Meadowlands is being billed as the family entertainment destination on the East Coast. Triple Five already owns The Mall of America in Minnesota and the West Edmonton Mall in Canada.
Once complete, the campus will have an indoor ski slope, aquarium, indoor waterpark, amusement park, performance halls, and a 4D movie theater.
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Related: Non-Profit Files Suit, Claims American Dream Meadowlands Bond Deal Is 'An Illegal Shell Game'
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