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Sierra Club: Governor Murphy is out there touting New Jersey’s biggest land-use and financial failure of the last 20 years

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the staff of the Ridgewood blog

East Rutherford  NJ, Today Governor Murphy stood alongside developers to promote the American Dream mega-mall proposal in the Meadowlands. The American Dream proposal includes 109 acres being added to the Paterson Plank Road Redevelopment Area. This project with a mall and entertainment complex was supposed to open years ago. The New Jersey Sports and Exposition Authority would give the final approval on which properties would be added for redevelopment. The Meadowlands is an extremely environmentally sensitive and flood-prone area and the New Jersey Sierra Club opposes this development.

Continue reading Sierra Club: Governor Murphy is out there touting New Jersey’s biggest land-use and financial failure of the last 20 years

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Xanadu : Governor Murphy Touts American Dream Investment in New Jersey’s Economy

XANADU

the staff of the Ridgewood

EAST RUTHERFORD NJ,  Recognizing the economic significance of the American Dream project to the State and New Jersey’s working families, Governor Phil Murphy today visited with construction workers at the three million square foot entertainment, retail and dining complex. The Governor expressed his appreciation to the men and women of the building construction trades and the Bergen County Building & Construction Trades Council for their contributions to the growth and expansion of New Jersey’s economy.

Continue reading Xanadu : Governor Murphy Touts American Dream Investment in New Jersey’s Economy

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This is Not A Joke , Governor Phil Murphy Proposes raising taxes to take the state’s economy off “life support” lol

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April 11,2018
the staff of the Ridgewood blog

Ridgewood NJ, , no this is not from the Onion ,and it a little late for April fools, New Jersey Governor Phil Murphy’s administration on Tuesday made the case to skeptical legislators that nearly $1.6 billion in new taxes is necessary to take the state’s economy off “life support” . Is this a joke the reason the state’s economy is on “life support” because of high taxes , have driven out private investment and massive fiscal mismanagement .

Poll after poll shows that most New Jerseyians feel high taxes are the biggest issue and the primary reason for leaving the state ,yet Phil Murphy running on a platform of raising everyone’s taxes won election .

Republican Sen. Declan O’Scanlon warned against taxing millionaires for fear they might move to states with friendlier tax climates.“You can squeeze the golden goose to get it to lay more golden eggs faster but at some point you either crush the goose or it gets pissed off enough and it flies to Florida, and either way you have no more golden eggs,” Bad news Senator its already happened , the “golden goose ” is long dead and the ship is sinking fast.

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From Tax Codes to Traffic, a Megamall’s Risks

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Model of proposed East Rutherford, New Jersey mall, the American Dream
(Ilya Marritz / WNYC)

Jun 5, 2017 · by Ilya Marritz

The company behind American Dream, Triple Five of Canada, is detailing its vision for a mall-entertainment destination in the Meadowlands in New Jersey — and the hazards that could derail the project.

Since the concept of a shopping destination on state-owned marshland was first green-lit in 2003, the mall has encountered many problems. Two earlier developers gave up on the project, formerly known as “Xanadu.”

Now, Triple Five is looking to raise $2.8 billion to finance the final phases of construction. More than half of the funding will be arranged privately through  J.P. Morgan Chase. The remaining $1.1 billion is expected to  come from the sale of tax-free, unrated, government bonds.

For that bond sale, two preliminary offering memoranda are now in circulation: one is for an $800 million bond package backed by payments in lieu of taxes (PILOT); the other is for a $300 million bond package backed by sales tax receipts generated after American Dream opens. The bonds are being sold by the Public Finance Authority of Wisconsin, which is serving as a middleman between the New Jersey Sports and Exposition Authority and investors.

The documents — over 1,800 pages of them — disclose a wide array of risks that potential investors will have to consider.

https://www.wnyc.org/story/tax-codes-traffic-megamalls-risks/

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Looking for (Another) $1.1 Billion to Finish an Amusement Mall

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By CHARLES V. BAGLIMAY 31, 2017

A $1.1 billion bond offering to help complete construction of the American Dream mall in the New Jersey Meadowlands went forward this week, nine months after the sale was originally planned.

In the story of the mall’s creation, the delay was a minor speed bump. Thirteen years after it was first announced, the project is on its third developer and is being built in the face of growing doubts about the viability of shopping malls and retail stores across the country. The associated-risks section of the bond offering runs to 38 pages.

But the current developer, Triple Five Group, contends that American Dream’s blend of retail stores and entertainment venues — the sprawling complex is to include a six-acre indoor water park, a Ferris wheel, movie theaters and an indoor amusement park, as well as Saks Fifth Avenue, Hermès, Toys “R” Us and Old Navy — is the future and the “complete opposite of a traditional mall.”

https://www.nytimes.com/2017/05/31/nyregion/looking-for-another-1-1-billion-to-finish-an-amusement-mall.html?_r=0

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American Dream Meadowlands back to life? Badly-needed funding arrives

xanadu

John Brennan , Staff Writer, @BergenBrennanPublished 11:41 a.m. ET May 20, 2017 | Updated 10:47 p.m. ET May 20, 2017

In a move that could turn out to be the trigger for turning the long-dormant American Dream Meadowlands into a reality, project operator Triple Five announced late Friday that it has closed on $1.6 billion in construction financing for the long-stalled project.

The deal is expected to set the stage in the coming days or weeks for a billion-dollar bond issuance that would provide the rest of the funding for the 2.9 million square foot first phase of the entertainment and retail project.

https://www.northjersey.com/story/news/2017/05/20/american-dream-meadowlands-back-life-badly-needed-funding-arrives/334012001/

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The Mother of All Stupid Idea’s : Trenton Run NJ state bank plan

bankrupt_monopoly

Governor candidate Murphy pitches his state bank plan to bankers. Opponents pounce.

By Brent Johnson | NJ Advance Media for NJ.com
on April 19, 2017 at 8:30 AM, updated April 19, 2017 at 10:54 AM

TRENTON — Phil Murphy, the early Democratic front-runner for governor, defended his proposal to create a state bank to an audience peppered with skeptics Tuesday: members of New Jersey’s banking industry.

Meanwhile, speaking to the same group, a number of his fellow candidates from both parties — including Lt. Gov. Kim Guadagno, the Republican favorite — assailed the idea as being dangerous for the Garden State.

Murphy was one of five gubernatorial hopefuls who addressed a gathering of the New Jersey Bankers Association at the Trenton Masonic Temple. The candidates pitched their plans to stimulate the state’s economy in the wake of Gov. Chris Christie, a Republican whose final term ends in January.

The speech came as critics are worried that Murphy’s proposal for a state bank — a key plank in his economic platform — would hurt local banks in New Jersey and that political influence and corruption could seep into the process.

https://www.nj.com/politics/index.ssf/2017/04/murphy_defends_state_bank_plan_to_bankers_and_oppo.html#incart_river_home

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Work on Meadowlands mall has stalled and developer won’t answer questions

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the curse of Xanadu strikes again

By Fausto Giovanny Pinto | NJ Advance Media for NJ.com
on March 23, 2017 at 8:52 AM, updated March 23, 2017 at 4:28 PM

EAST RUTHERFORD — Work on the American Dream mall has been just about non-existent, months after it was reported in December that construction had stalled.

Cranes were at a standstill and a hardhat could not be found at the American Dream mall site in East Rutherford. Work was been stalled since December. (Fausto Giovanny Pinto | NJ Advance Media for NJ.com)Fausto Giovanny Pinto | NJ Advance Media for NJ.com

Borough Mayor James L. Cassella says he has been in the dark about the billion-dollar mega-project, but is hopeful construction will start again soon.

“I haven’t seen much, maybe a few people, a couple of cars parked,” said Cassella last week. “There aren’t a lot of people down there.”

https://www.nj.com/bergen/index.ssf/2017/03/work_on_meadowlands_mall_has_stalled_and_developer_wont_answer_questions.html#incart_2box_nj-homepage-featured

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Reader says , I’m sure the unions will do a great job managing their own pensions

Xanadu_main_theridgewoodblog

Good news. The faster the plans go insolvent the faster benefits can be diminished. Wonder if the unions will lower the assumed rate of return from 7.65% to actual 20 year returns of only 7.2%? Maybe they can bet all of the funds on red in Atlantic City? Or use updated actuarial data on lifespan which will add 2-3 years of pension liabilities per retiree? How will they resolve the issue of only 1.24 contributing workers for every retiree? Maybe they’ll reinstate COLAs to deplete the funds even faster. NJ state and local taxpayers should be happy this mess is no longer theirs. Thanks PFRS.

I’m sure the unions will do a great job managing their own pensions. Maybe they can invest more in American Dream Meadowlands or put it all on red in the casino at their own Revel hotel?

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Birders want to keep Meadowlands mall from being bird-killer

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By SCOTT FALLON
Posted: Feb. 18, 2017 8:00 am Updated: Feb. 18, 2017 11:54 am

EAST RUTHERFORD, N.J. (AP) — When the owners of American Dream unveiled their latest renderings of the Meadowlands mall and entertainment complex in December, some saw the new glass facade as a significant upgrade from the much reviled boxy exterior.

Don Torino, however, saw only death.

The president of the Bergen Audubon Society feared the glass exterior could be deadly to the barn swallows, marsh wrens and dozens of other bird species that migrate through the Meadowlands each year.

Birds slam into buildings at alarming rates. Studies by the U.S. Fish and Wildlife Service estimate that buildings with reflective glass kill 303 million birds each year, ranking second only to cats in bird kills. Birds can’t see reflective glass well, mistaking it for clear air space. Like moths, they are also attracted to bright lights at night when they migrate and often cannot sense that those lights are part of a larger structure.

“It’s pretty simple: If you put a glassy building in a place where birds migrate, like the Meadowlands, the likelihood of a bird hitting it is high,” Susan Elbin, director of conservation and science for New York City Audubon, told The Record (https://bit.ly/2m8fdi6).

https://www.njherald.com/article/20170218/AP/302189899

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Xanadu Still Nothing More than and Eyesore

Xanadu_main_theridgewoodblog

Men Not at Work at Troubled Mall Development

Feb 2, 2017 · by Ilya Marritz

The half-built American Dream mall in New Jersey’s Meadowlands has yet again missed a target date to secure construction financing, raising fresh questions about the developer’s ability to complete the project.

On December 8th, developer Don Ghermezian told WNYC all the money is teed up  — nearly $2.7 billion dollars to complete work on the 90-acre mall near Met Life Stadium. The money is to be raised through tax-free municipal bonds and through private borrowing.

“I anticipate that prior to the Christmas holiday the public will know fully about the commitment on the financing,” Ghermezian said.

But Christmas came and went. Then a company spokesman said early January was more likely. Now it’s February, and there’s still no news of how the Ghermezians’ company, Triple Five, will pay to make a retail and entertainment pleasure dome out of the eyesore on state-owned land next to the New Jersey Turnpike.

https://www.wnyc.org/story/men-not-work-troubled-mall-development/

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BRICKS OR CLICKS? THE AMERICAN DREAM MEGAMALL VERSUS ONLINE SHOPPING

xanadu_theridgewoodblog

JOHN REITMEYER, ILYA MARRITZ, AND SUSAN BERFIELD | DECEMBER 13, 2016
American Dream’s developers argue that they’re not just building a mall, they’re creating a global destination

This is the second installment of Mall Madness, a five-part series on the American Dream retail and entertainment complex under construction in the Meadowlands. The series was produced through a reporting collaboration between WNYC, NJ Spotlight, and Bloomberg Businessweek. The first story and the third story, and fourth story are also available online.

As the retail industry undergoes a massive transformation thanks to new technology and online shopping, is there any mall out there that can be considered “Internet-proof?” Maybe not, but that’s exactly what Triple Five, the developer of the American Dream megamall in the Meadowlands, is betting on.

American Dream, the garish, multicolored complex that sits alongside the New Jersey Turnpike in East Rutherford, is designed to be not just a mall, but a giant entertainment destination, featuring an amusement park, full-size ice-skating rink, indoor ski slope, waterpark, towering observation wheel, and, oh yes, some stores, too.

https://www.njspotlight.com/stories/16/12/12/bricks-or-clicks-the-american-dream-megamall-versus-online-shopping/?utm_campaign=Observer_NJ_Politics&utm_content=New%20Campaign&utm_source=Sailthru&utm_medium=email&utm_term=New%20Jersey%20Politics

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American Dream Meadowlands to miss another bond sale target

xanadu

BY JOHN BRENNAN
STAFF WRITER |
THE RECORD

The sale of $1.15 billion in bonds to fund the remaining construction of the American Dream Meadowlands shopping and entertainment complex will not take place as scheduled on Friday, a state official said Wednesday.

But Wayne Hasenbalg, the president of the New Jersey Sports and Exposition Authority, which owns the land where the $5.2 billion project is being built, added that he does not foresee any impediments to a closing taking place within the next 30 days.

https://www.northjersey.com/news/american-dream-meadowlands-to-miss-another-bond-sale-target-1.1686553?utm_campaign=Observer_NJ_Politics&utm_content=New%20Campaign&utm_source=Sailthru&utm_medium=email&utm_term=New%20Jersey%20Politics

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There’s a terrifying mall ‘blight’ threatening communities across America

Xanadu_main_theridgewoodblog

Ashley Lutz

Sep. 3, 2016, 8:17 PM

One in six American malls are expected to disappear in the next decade. That’s scary news for many communities.

Visits to malls declined by 50% between 2010 and 2013, according to real estate research firm Cushman & Wakefield. Analysts expect upcoming data will show an even steeper drop in mall traffic.

Mall closures could have terrifying implications for communities, Howard Davidowitz, chairman of Davidowitz & Associates, a national retail-consulting and investment-banking firm, told Business Insider.

https://www.businessinsider.com/what-will-happen-when-malls-shut-down-in-america-2016-9

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OUR TURN NJ PULLS PLUG ON PAID MEDIA CAMPAIGN PUSHING NORTH JERSEY CASINOS

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Current Climate, Polling Data, Lack Of Specifics Make Campaign Untenable

September 22, 2016

the staff of the Ridgewood blog
Roseland NJ, Paul Fireman and Jeff Gural are today reluctantly announcing the suspension of the paid media component of the statewide OUR Turn NJ campaign.  In doing so, they issued the following joint statement:“We believe deeply that gaming expansion to Northern New Jersey is a remarkable opportunity that should not be squandered. We have committed $4 billion in private investment to this state to create world class resort destinations with gaming. The benefits include 43,000 new jobs and hundreds of millions of dollars in recaptured revenue — a rare opportunity for New Jersey.  In addition, as New York debates allowing gaming in New York City, it is critical that we beat them to market or risk losing this opportunity permanently.

“The data, however, speaks for itself. The current political climate in New Jersey and voters’ concerns about the lack of details relating to the effort have proved overwhelming. Even knowing that an out-of-country gaming company that sends New Jerseyans’ gaming dollars to Malaysia is funding opposition ads does not have an impact.  As such, with great reluctance we have decided to suspend the paid media component of the statewide campaign.”

Recent internal and third-party polling data have noted how difficult the current climate is.  As noted in the attached internal polling summary, “Voters have a very negative outlook on the direction of the state and have extremely low confidence that the revenue promised in the Casino Expansion Amendment will be delivered as it is promised. Just 19% of New Jersey voters believe that the state is headed in the right direction. And an even lower proportion (10%) have a high level of confidence that the state will deliver upon the promised revenue as stated in the ballot measure.”

The summary also notes that when asked to explain why they have low or no confidence in the revenue being delivered as promised in the amendment, 50% of respondents say it is because politicians will use the funds for their own priorities, while another 30% volunteer that it is a concern for them.

The polling shows that, while there are strong arguments to be made for the benefits of gaming expansion, “Respondents react very strongly to reasons to oppose the Amendment, which play to the lack of specifics and distrust directed at state government in Trenton.  For comparison, the highest testing positive message is viewed as a very strong reason to support the measure by 48% of voters.  The four negative messages tested in the survey all receive anywhere between 56% to 60% of voters who say that each one is a very strong reason to oppose the measure.”

Polling released earlier this week by Rutgers-Eagleton reinforces this voter dissatisfaction.  In that poll, only 25 percent of those surveyed believe New Jersey is headed in the right direction, while 68 percent say the state has gone off on the wrong track. The poll is available at:https://eagletonpoll.rutgers.edu/rutgers-eagleton-Christie-casinos-NJ-Booker-Menendez-Sept2016/

The current campaign to expand gaming is mirroring New Jersey’s first efforts to legalize casino gaming in 1974.  In that year, the New Jersey voters rejected a ballot initiative to legalize gaming due to a lack of specifics in the ballot question about where casinos would be located.  Two years later, a revised ballot question passed.  One of the main reasons the 1976 question passed, unlike the 1974 one, was that it was more specific in nature. The 1974 campaign indicated that casinos would most likely be in Atlantic City, but the resolution itself did not indicate a specific location. Thus, proponents of the 1974 resolution “later admitted that a large number of voters apparently rejected the proposal simply because they did not want to see casinos in their own community.”[1] In 1976, the resolution clearly stated that casinos would only be legal in Atlantic City, making voters far more comfortable with the idea.