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New Jersey Hasn’t Cleared American Dream Mall Grant as Debt Payment Looms

  • State grants back $290 million of American Dream muni bonds
  • Mall has $9.3 million payment due Aug. 1, but $820 in reserve
Updated on

Three weeks before the American Dream super-mall is due to pay debt backed by New Jersey economic development grants, the state hasn’t approved a key document needed to release the cash, raising the risk bondholders won’t get their money.  

The 3.5 million-square-foot shopping and entertainment complex in the Meadowlands has about $820 left in a reserve account, and is scheduled to make a $9.3 million payment on the bonds due Aug. 1, according to a bond filing. The $290 million of municipal-bond obligations are backed by state economic development grants based on sales-tax collections.