the staff of the Ridgewood blog
East Rutherford NJ, the American Dream megamall in East Rutherford, NJ, continues to face financial challenges as it missed a $287 million interest payment on Feb. 1, according to a notice from U.S. Bank, the bond trustee.
The payment was due on municipal bonds used to finance the mall’s $5 billion construction, but insufficient funds in the bond reserve account prevented the payout.
American Dream’s Bond Payment Issues
The missed payment affects $287 million of the $1.1 billion in municipal bonds linked to the mall. These bonds are backed by:
- State sales tax collections at the 3-million-square-foot shopping and entertainment complex
- Grants from the New Jersey Economic Development Authority (NJEDA)
However, the reserve account for these bonds had already been depleted to cover prior payments in 2021 and 2022, leaving a balance of just $967, according to U.S. Bank.
First Bond Payment in Years Came in August 2024
After years of delays and missed payments, bondholders finally received a grant revenue payment in August 2024, but that wasn’t enough to sustain future payouts.
U.S. Bank confirmed that the trustee has no assurances on when, or if, future grant payments will be made.
NJEDA and American Dream Remain Silent
The New Jersey Economic Development Authority did not respond to requests for comment about the missed payment or when bondholders can expect another.
Similarly, American Dream’s representatives have not issued any statements addressing the issue.
Financial Woes and Lawsuits Continue
Since its opening in October 2019, the American Dream megamall has faced significant financial challenges, including:
- COVID-19 shutdowns that forced closures months after opening
- Low foot traffic and sluggish sales, leading to $245 million in losses between 2021 and 2022
- Multiple lawsuits over unpaid bills, injuries, and tenant disputes
Developers Demand $183M Property Tax Refund
In a new legal battle, American Dream’s developers argue they have overpaid East Rutherford by $183 million in negotiated property taxes and are now seeking a refund.
What’s Next for American Dream?
With missed bond payments, legal disputes, and ongoing financial struggles, the future of one of the most ambitious retail projects in U.S. history remains uncertain.
Bondholders and mall stakeholders are now left waiting for updates on whether grant payments will resume or if further financial restructuring will be needed to keep the mall afloat.
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Well, that’s why they’re open up on a Sunday, to make money
Sunday openings would never make up for the revenues they need to pay off their debts. Here’s an idea….. if you don’t tear it down and let the land revert back to its original state, put your “affordable” housing there and relieve some of the other towns in the vicinity of the dumb affordable housing obligations that are only going to turn those towns into cities.
Are you talking about the American Dream mall, or America?
Knock it down and give the land back to the birds.
I heard those people from Gaza need somewhere to go.