One of New Jersey’s biggest attractions is facing a growing dispute with the communities surrounding it. Secaucus Mayor Mike Gonnelli says American Dream’s owners owe his town nearly $1 million — and he is prepared to go to court if the money does not come. Other municipalities say they are waiting for millions more.
SECAUCUS, NJ — American Dream attracts millions of visitors to the Meadowlands, but officials in neighboring towns say the massive entertainment and shopping complex has failed to deliver something far less glamorous: money they say was promised to their communities.
Secaucus Mayor Mike Gonnelli says he is prepared to sue Triple Five Group, the owner of American Dream, if the company does not resolve the dispute.
Gonnelli told Patch that the town wants to sit down with the company first, but made clear that litigation could follow if the issue remains unresolved.
“If we don’t get our money, we’re going to sue them. No question about it.”
Nearly $1 Million for Secaucus — $5 Million for Carlstadt
According to Gonnelli and Carlstadt Business Administrator Bob Ceberio, Triple Five owes Secaucus $966,666, while Carlstadt is owed approximately $5 million. Ceberio said there is a strong possibility Carlstadt could join Secaucus in a lawsuit.
And those are not the only municipalities involved.
Officials say another 11 Meadowlands communities — Little Ferry, Lyndhurst, Moonachie, North Arlington, Ridgefield, Rutherford, South Hackensack, Teterboro, Jersey City, Kearny and North Bergen — could each be owed an estimated $387,500.
The dispute centers on a program created more than two decades ago, long before American Dream opened its doors.
A Promise Dating Back to the Xanadu Era
The payments stem from the Municipal Assistance Program, established in 2004 when the development was still known as Xanadu.
The idea was relatively straightforward: communities surrounding the massive Meadowlands project would receive payments to help offset the additional strain created by traffic and demands on local police, fire departments and other infrastructure.
Ceberio, who previously led the Meadowlands Commission, says the payment requirement was established as a condition for whoever ultimately took control of the property.
American Dream’s current owner, Triple Five Group, took over the troubled project years later and eventually transformed it into the enormous retail and entertainment complex that opened in stages beginning in 2019.
But neighboring municipalities now say the payments never arrived.
“One Million Could Buy Us a New Fire Truck”
For Gonnelli, the dispute is not simply about a number on a balance sheet.
Secaucus police and firefighters have responded to emergencies at American Dream in the past, including a fire at the indoor ski slope and a shooting at the mall in 2022.
Gonnelli acknowledged that roughly $1 million is not enormous compared with Secaucus’ overall municipal budget — but pointed out what that money could provide locally.
“One million could buy us a new fire truck, a new police car.”
His complaint is also about communication. According to Gonnelli, local officials have repeatedly sought discussions with American Dream’s owners without getting the response they want.
American Dream and the 100% Occupancy Dispute
One point of disagreement appears to be when the payments actually become due.
Ceberio told Patch that Triple Five has argued it only has to make the payments once American Dream reaches 100% occupancy.
Local officials strongly dispute that interpretation.
Ceberio says the original agreement contains no such requirement, while Carlstadt Mayor Robert Zimmermann questioned the idea that any mall could realistically maintain 100% occupancy.
As of January 1, American Dream was reported to be about 88% occupied.
Zimmermann also criticized the New Jersey Sports and Exposition Authority, which owns the land beneath American Dream, accusing it of failing to enforce the agreement.
He said taxpayers should not be left effectively subsidizing a major regional attraction while their municipalities wait for promised payments.
The Dispute Comes Amid Broader Financial Battles
The confrontation with Secaucus and Carlstadt comes against a complicated financial backdrop for American Dream.
East Rutherford previously sued over approximately $7.5 million in missed PILOT payments, or payments in lieu of taxes, connected with the project.
American Dream has also been involved in a separate 2026 legal fight with bondholders over the valuation of the property and payments tied to hundreds of millions of dollars in bonds used to finance the complex.
Still, Gonnelli argues that anyone looking at the crowds flowing through American Dream would have difficulty believing the complex is not generating significant revenue.
He pointed specifically to crowds and parking during World Cup events and said the mall has become a thriving destination.
From Shopping Destination to Courtroom Fight?
For now, Secaucus is leaving the door open for negotiations.
But the message coming from Gonnelli is increasingly clear: after years of waiting, the town wants the money it believes it was promised.
And if negotiations fail, one of New Jersey’s most recognizable destinations may soon find itself facing another legal battle — this time with the communities right outside its doors.
Sources: Patch; NJ Spotlight News/PBS; Wall Street Journal.
By NJ RADAR Team