The NJSEA authorized $1.15 billion in bonds to build the American Dream megamall in the Meadowlands.
HACKENSACK - A nonprofit taxpayer advocacy group contesting the New Jersey Sports and Exposition Authority's issuance of $1.15 billion in bonds for the American Dream mall filed an appeal Friday seeking to overturn two resolutions authorizing the bonds.
The NJSEA, which authorized the bonds in resolutions Aug. 25 and Sept. 12, has claimed other retailers are funding the advocacy group, known as New Jersey Alliance for Fiscal Integrity.
The sports authority plans to sell the bonds to the Wisconsin Public Finance Authority, an agency Triple Five, the developer of American Dream, has worked with in the past. The Wisconsin Public Finance Authority will simultaneously issue the bonds to the public.
American Dream will repay the bond holders through a combination of up to $390 million in sales tax revenue and via a payment-in-lieu-of-taxes (PILOT) agreement with East Rutherford.
Earlier this month, New Jersey Alliance for Fiscal Integrity called the bond deal "an illegal shell game designed to dupe the taxpayers."
"The NJSEA is unlawfully attempting to issue $1.15 billion of bonds, which will divert state and local tax revenues from public purposes," the alliance states in a 59-page document filed with the Appellate Division of Bergen County Superior Court.
A key argument is the claim that NJSEA exceeded the scope of its authority in authorizing the bonds.
"An agency may not give itself authority (that is) not legislatively delegated," attorneys for the non-profit claim in the filing.
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Attorneys for the New Jersey Alliance for Fiscal Integrity also claim the NJSEA:
- Did not disclose essential terms of the bonds, including interest rate and maturity rate;
- Failed to give sufficient public notice when meeting to authorize the bonds
- Established bond structure "that the Local Finance Board had not approved, as required by law."
The NJSEA has until 4:30 p.m. Friday to file a response with the court.
Anthony G. Attrino may be reached at tattrino@njadvancemedia.com. Follow him on Twitter @TonyAttrino. Find NJ.com on Facebook.