EAST RUTHERFORD - A vote last night by council members in East Rutherford has given the stalled American Dream project a slight nudge forward.
The council gave its approval to go forward by agreeing to issue up to $524 million in “non-recourse bonds” to finance the project, formerly known as Xanadu, in the Meadowlands.
Mayor James Casella says the vote means the bonds can be issued with no obligation to the municipality. The bond buyers would be responsible for any losses that might be incurred, the mayor explained.
The council must still pass a resolution authorizing the bond sale once any remaining differences between the town and the developer have been worked out.
Casella says the move signals to investors that the town wants to move forward, but at a “no risk, no-cost basis for East Rutherford.”