American Dream Sued For $7.5M In Payments: Report

BERGEN COUNTY, NJ — A new lawsuit contends American Dream mega-mall is in arrears for $7.5 million on payments to its home city, according to a new report.

American Dream developers owe East Rutherford millions of dollars in payment in lieu of taxes agreements, a lawsuit filed by the borough on March 3 said.

The mall, which has several PILOTs with the borough, failed to make a $125,000 installment payment on the main PILOT that was due last month, according to the report.

The lawsuit says payments on the PILOTs were "supposed to commence" once the mall opened, yet the mall has "dubiously asserted" that it is not fully open to the public, according to a Bloomberg report.

American Dream's owner Triple Five Group was paying the main PILOT for entertainment and retail, until Feb. 1 — one of four payment due dates stated in the agreement — and has not paid the three other PILOTS, the news outlets reported. Pursuant to a PILOT agreement, a property makes regular payments instead of conventional taxes.

"We intend to vigorously defend our position," American Dream spokesperson Jessica Griffin told the news outlets.

East Rutherford, Bloomberg reported, also sued the New Jersey Sports and Exposition Authority, which has an agreement with American Dream to "guarantee (the mall's) obligation" to make the payments. The suit also said the sports authority, which owns the complex where the mall is located, has shorted the borough $525,000 for other facilities, the news outlets said.