Murphy gives American Dream mall a vote of confidence: 'I don't see it failing'

EAST RUTHERFORD — Despite a cascade of woeful financial news about the American Dream megamall and entertainment complex, Gov. Phil Murphy predicted Tuesday that the Meadowlands site’s best days are still ahead of it.

"I don't see it failing," Murphy told reporters during an appearance in East Rutherford, two days after news broke that the complex, built with more than $1 billion in state subsidies, had missed an Aug. 1 deadline for a loan payment.

“We have to root for its success,” Murphy said when asked about American Dream. “Clearly the combination of the pandemic, the e-commerce reality in the world, were both working against the prospects of that place."

The governor was in town to celebrate an unrelated effort: a two-year extension of rules allowing restaurants around New Jersey to offer outdoor dining.

On Monday, a trustee for investors said Triple Five, the Canadian developer behind the mall, had failed to make an $8.8 million payment on its $290 million loan used to finance the project.

That was the third report of a missed payment by American Dream in recent months. It also posted $60 million in losses last year amid pandemic-related restrictions, and its owners are challenging $9 million that several neighboring municipalities say they are owed. The New Jersey Economic Development Authority, meanwhile, has held up the release of taxpayer grants to the mall, funds the developers need to make certain loan payments.

"The mall's definitely in trouble — there's no doubt in my mind," East Rutherford Mayor Jeffrey Lahullier said in a June interview after one late bond payment. "I don't think they can make ends meet."

Mall officials have predicted the complex could see 40 million annual visitors and recently have opened attractions, including a 300-foot Ferris wheel, an indoor ski slope, an ice-skating rink, an amusement park and a new food court — amenities that Triple Five says separate American Dream from traditional malls, which have struggled to cope with the trend toward online shopping.

Commercial real estate analytics firm Green Street, which has an office in Hoboken, recently estimated that the occupancy rate for American Dream storefronts was in the low-80% range. Murphy conceded Tuesday that the mall’s biggest challenges have been with attracting high-end, luxury retail tenants. But he still expressed confidence. The mall's traffic will continue to pick up, he said.

“It’s come a long way,” the governor said. “You go back there on a weekend — particularly after Labor Day — the place is mobbed.”

Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record. 

Email: munozd@northjersey.com; Twitter: @danielmunoz100

This article originally appeared on NorthJersey.com: Troubled American Dream mall gets Phil Murphy's vote of confidence