the staff of the Ridgewood blog
EAST RUTHERFORD, NJ — The American Dream megamall just scored a major legal victory — and it could have big financial repercussions for taxpayers, bondholders, and nearby towns.
New Jersey Tax Court Judge Michael Gilmore ruled on July 31 that the 3.5 million-square-foot mall’s assessed value should be reduced by $850 million, dropping from $2.5 billion to $1.65 billion for the 2025 tax year. Mall owner Triple Five, the Canadian developer behind the $5 billion project, has challenged its tax value every year since opening in 2019.
💸 What the Reduced Assessment Means
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Big savings for Triple Five, which pays payments-in-lieu-of-taxes (PILOTs) instead of standard property taxes due to the mall’s location on state-owned land.
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Lower payouts to investors holding $800 million in tax-exempt bonds used to finance the project — those payments are tied to the mall’s assessed value.
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Further strain on local municipalities like East Rutherford, which rely heavily on the mall’s revenues.
Triple Five’s attorney argued that the borough’s original assessment was filled with “fundamental flaws and errors” that artificially inflated the mall’s worth by hundreds of millions.
📉 An Ongoing Decline
This latest decrease comes just two months after the mall’s 2024 assessment was already reduced by $800 million citing high vacancy rates and underperforming revenue figures. American Dream has often fallen short of rosy financial projections, despite its headline-grabbing attractions (water park, indoor ski slope, Nickelodeon theme park, over 200 stores, plus luxury brands and dining).
⚖️ Not the Only Lawsuit
Triple Five is simultaneously pursuing another tax case claiming it overpaid East Rutherford by $183 million and wants a refund — arguing that American Dream’s value has been assessed higher than Short Hills Mall, Garden State Plaza, Willowbrook Mall, The Shops at Riverside, AND Six Flags Great Adventure combined.
There’s also a separate lawsuit from eight surrounding Meadowlands towns saying the mall still owes them a combined $8.6 million in PILOT payments.
🏢 Is the Mall “Fully Open”?
A Bergen County judge ruled in March that the facility is considered fully open to the public, meaning Triple Five must honor $13 million in annual payments to East Rutherford — even though the mall is currently only 87% leased.
As American Dream continues its legal war over property valuation, the mall’s tax contribution will remain in flux — leaving local finance officials, bondholders, and nearby taxpayers watching closely as more appeals play out.
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