TRENTON — A Senate panel has approved legislation to usher in $200 million in potential tax breaks for the stalled Meadowlands entertainment complex formerly known as Xanadu. By a vote of 6-0 with one abstention, the Senate Economic Growth Committee sent the bill (S2957) on to the full Senate. It amends the 2009 economic stimulus act to include the...
TRENTON — A Senate panel has approved legislation to usher in $200 million in potential tax breaks for the stalled Meadowlands entertainment complex formerly known as Xanadu.
By a vote of 6-0 with one abstention, the Senate Economic Growth Committee sent the bill (S2957) on to the full Senate.
It amends the 2009 economic stimulus act to include the Meadowlands in areas eligible for the Economic Redevelopment and Growth Grant program – which Gov. Chris Christie wants to use to jumpstart project.
“If we don’t do it, there’s no jobs, no revenues and tax generated. This is not a grant. This is money down the road when people are working,” said state Sen. Raymond Lesniak (D-Union), the bill’s main sponsor.
The project was taken over by the Triple Five Group – which owns the Mall of America in Minneapolis. The project is now called American Dream Meadowlands. The company still has to apply to the Economic Development Authority for the tax breaks, which would be taken off the company’s sales tax revenues.
Christie announced the deal and tax break for Triple Five Group on May 3. But the state did not have the legal authority to give the break. Last week, the Christie administration hastily asked state Sen. Raymond Lesniak (D-Union) and Albert Coutinho (D-Essex) to introduce the legislation.
The expansion would also make a mixed-use development project at the former Bendix Aviation site in Teterboro eligible for a smaller tax break.
Opponents said the state government was singling out just two developers for help while other stalled business projects get nothing.
“So we’ve got two private companies getting bailed out and there are developments all over this state that have stalled because they made an investment, the recession came along,” said state Sen. Richard Codey (D-Essex), who abstained.
Sierra Club New Jersey Director Jeff Tittel said that if the state is going to pony up money to help the developers, they need to put more environmental protections in place. He also said the state could wind up giving more than $200 million in tax breaks to the developer because it will get back 20 percent of what it spends, with no cap.
“My point also is that this building, when it was rushed through, there is no mitigation plan for traffic, environmental impacts, air pollution — all that stuff was pretty much waived,” he said.