American Dream financing, project labor agreement approved

East Rutherford - While the financing for the American Dream Project was getting final approval in Trenton, the developer for the project disclosed that an agreement with the labor unions is in place.

Triple Five spokesperson Alan Marcus confirmed that the Project Labor Agreement was recently signed between labor unions representing the thousands of workers that will be needed for the construction project and Triple Five, the developer for the American Dream Meadowlands.

Details of the union labor agreement were not available, but the agreement contains work and wage details.

Additionally, although the state is giving the developer a six year window to complete the project, the developer's spokesperson said it will be finished by 2015.

Marcus said the financing and Project Labor Agreement agreements in place reflect the developer's progress.

"We're starting construction very soon. The equipment and piles are on site. We're moving forward with the project," said Marcus.

"The six year window is not a concern. We're expecting to complete the project within an minimum of 18-24 months after starting construction. We're looking for a 2015 opening," said Marcus.

The complex financing plan is two years in the making with a final price tag $1.9 billion to complete the project. Triple Five will raise approximately $1 billion from private sources. The state Local Finance Board approved the $748 million bond financing on Oct. 31. The Borough of East Rutherford will issue approximately $500 million of those bonds, through the county. The borough created a redevelopment agency this year, partly after following advice from bond counsel, in order to facilitate the transaction.

The Economic Development Authority approved a tax break and $254 million in financing on Nov. 1. Triple Five will collect a percentage of sales tax revenue to pay off part of the bonds. Additionally, and in return, East Rutherford is getting approximately $128 million in PILOT fees over the next 32 years, and $20 million up front to pay for the new municipal police and court building, which will save the borough $1 million in debt service.

Part of the $128 million includes $44 million in PILOT fees over 30 years for Triple Five to pay off the package of $500 million in bonds issued through the borough. The other $62 million in PILOT fees will be used for municipal purposes.

Although construction and financing have the green light, the project is still marred with litigation hurdles that must be worked out before American Dream Meadowlands eventually opens. The New York Jets and Giants football teams sued to halt construction of the project's water and amusement park portions, noting that opening the parks on game days will create game day gridlock. Marcus would not comment on whether or not the developer would be willing to limit Sunday hours or eliminate Sunday openings altogether.

"We have been in settlement discussions with the teams, and I think it's safe to say that all parties would like to see a resolution," Marcus said

Source: North Jersey.com