American Dream developer Triple Five will begin selling $1 billion in government bonds to pay for the completion of the Meadowlands shopping and entertainment project, according to a report in The Record.
The bonds will begin selling within the next couple of months as the New Jersey Sports and Exposition Authority will issue $350 million in municipal bonds followed by East Rutherford issuing another $675 million. The bonds will finance the remaining construction on the complex, which comprises nearly three million square feet of retail and entertainment space.
However, the bond sale has been postponed numerous time and the project itself has been delayed so often, even East Rutherford mayor James Cassella appears skeptical of it moving forward, telling The Record, “We’ll see”.
The Record explains the nuances of the bonds:
Most municipal bonds are “general obligation” bonds, meaning they are backed by the taxing authority of the government agency that issues them. However, the bonds that the sports authority and East Rutherford are issuing on behalf of American Dream will be “revenue” bonds, meaning that investors will be repaid only with revenue generated by the project. They also will be “non-recourse,” which means investors will not be able to sue East Rutherford or the sports authority if the project fails.
In 2015, American Dream issued a sneak peak of its eventual opening. But no one really know if it will ever happen.