Relevant Documents:Tax Assessments Q3’23Tax Assessments Q1’23, Q2’23No Material Litigations Pending (EMMA Notice)Gross Sales Q2’23
The borough of East Rutherford in Bergen County, New Jersey, disclosed the tax-exempt assessments for the American Dream Project, showing a slight decrease to $3.122 billion for the third quarter of 2023
from the $3.145 billion assessment for the first and second quarters
, according to an EMMA filing posted yesterday, Tuesday, Sept. 5.
In addition to the decline in assessment, the tax rate also declined to 1.623% in the third quarter from 1.751% in the first and second quarters. The rate for the third quarter is the lowest rate since 2018 and much lower than the 2.147% tax rate projected in 2020, according to Reorg analysis
. The payment in lieu of taxes, or PILOT, generated is below annual debt service of $54.1 million.
Based upon the $3.13 billion valuation and 1.623% rate, taxes otherwise due to East Rutherford in the absence of the PILOT exemption were $50.8 million. However, after taking into account the PILOT exemption, which is based on an annual service charge equal to 90% of the tax amount owed to East Rutherford, the actual bill for 2023 is $45.77 million, below the $49.58 million 2022 annual service charge.
American Dream has paid $24.8 million of the 2023 PILOT so far, and the balance due for 2023 is $21 million. The amount due in the third quarter is $10.5 million, according to the EMMA filing. American Dream has $800 million of municipal bonds outstanding that are backed by revenue generated by the PILOT. American Dream makes quarterly payments due Feb. 1, May 1, Aug. 1 and Nov. 1, according to the Series 2017 PILOT bonds’ official statement
In a separate filing, Ameream LLC CFO Adi Adair noted that the only material, uninsured litigation pending for the American Dream project that remains unresolved are tax appeals for tax years 2019 through 2023. American Dream is challenging assessments in the Tax Court of New Jersey and is a participant in other litigations, as reported
Gross sales during the second quarter were $132.7 million for retail, attractions, entertainment, dining and parking, according to a separate EMMA notice also posted Tuesday, representing an increase from $116.3 million in the first quarter, as reported