A New Jersey municipality that’s a hub for malls and shopping strips has filed suit against the mega retail center American Dream, alleging the property is violating local blue laws that ban the sale of certain goods on Sundays.
The borough of Paramus this week lodged a 17-page complaint against American Dream, a 3 million-square-foot entertainment-and-shopping complex in East Rutherford, in North Jersey’s Meadowlands. The $5 billion property is the second-largest mall in the United States, trailing only its sister complex, Mall of America, in Minnesota. Both complexes are owned by Canadian retail landlord Triple Five Group.
Paramus charges that American Dream, home to 120 retailers, is flouting blue laws in Bergen County, where it’s located. Those laws, dating back to the late 1700s, bar the sale of certain items — such as apparel and furniture — on Sundays. American Dream, which debuted in October 2019, abided by the restrictions for several years and stayed closed. But the lawsuit charges that the mall has been engaging in “unlawful practices” relating to blue laws for “29 or more Sundays.”
The lawsuit claims that American Dream “is a public nuisance and can be shut down” because of the alleged violations. American Dream denies the charge, saying it is on state-owned land and not subject to Bergen County’s blue laws.
Blue laws are relatively rare across the United States, according to Rudy Milian, president and CEO of retail consultant Woodcliff Realty Advisors. But American Dream’s dustups with area municipalities have been fairly common. It’s had ongoing battles with East Rutherford over its property tax assessments and with Meadowlands towns that have claimed they are owed money by the megamall, for example.
Origins of blue laws
In New Jersey, which embraces home rule, its 21 counties each have the right to determine what items can be sold on Sundays, with Bergen the sole one doing it. Paramus itself has restrictions on what can be sold within its borders, on top of the county’s rules.
Blue laws were historically enacted for religious reasons, such as restricting alcohol sales on the Lord’s Day, according to Milian. But blue laws that restrict shopping for goods such as clothing and furniture “are very archaic, and they are rarely anywhere else in the country,” he said. Most blue laws have been repealed, although there are still states that ban selling vehicles or have tighter rules on the sale of liquor on Sundays.
With its blue laws, Bergen County “really is a holdout in the entire country,” Milian said.
County residents in a 1980 referendum approved a new version of their blue laws. Residents have supported the restrictions because of all the traffic the area sees as the home of Westfield Garden State Plaza, Paramus Park mall and Bergen Town Center. During the Christmas holiday season, shoppers in Paramus used to have trouble exiting mall parking lots because of backed-up traffic — or residents were unable to get out of their driveways. And those large malls abide by the blue laws, as do other shopping centers in Bergen County.
American Dream is next to MetLife Stadium, where the New York Giants and New York Jets play pro football. The stadium sells merchandise such as apparel during Sunday games. American Dream referenced that fact in its statement regarding Paramus’ litigation.
A ‘political stunt’
“The lawsuit is a meritless political stunt driven by private competitors’ interests,” a spokesman for the mall said in an email to CoStar News on Wednesday. “It is well established that Bergen County’s blue laws do not apply to property owned by the state. American Dream is on state property where retail sales have occurred on Sundays for decades. We look forward to our day in court.”
Paramus Mayor Christopher DiPiazza disagreed.
“Our malls and shopping centers, for decades, have followed and respected the Bergen County blue laws and have competed on a level playing field,” the mayor said in a statement. “American Dream promised on record that when open they would follow the blue laws. They have gone back on that promise. Paramus residents know that in order to have one of the lowest tax rates in North Jersey we must have a vibrant business community. This unfairly puts them at risk.”
Paramus also named the county, the borough of East Rutherford and the New Jersey Sports and Exposition Authority as defendants in its lawsuit.
Bergen County Executive County Executive Jim Tedesco said he’s a staunch defender of local blue laws, adding that American Dream officials had “personally assured” him they would follow those Sunday regulations.
Enforcing the law
“Let me be absolutely clear — from my first days as a Paramus councilman through my time as mayor, freeholder, and now county executive, I have been a steadfast defender of Bergen County’s blue laws because they protect our quality of life and guarantee retail employees one day of rest,” Tedesco said in a statement.
American Dream is gaining “an unfair advantage over every other business in Bergen County that is following the law,” Tedesco said, adding that he’s repeatedly asked state officials for clarity on how the law will be enforced.
Bergen will continue to explore legal remedies, according to Tedesco.
The sports authority, which owns the land under American Dream, declined to comment as the matter is the subject of litigation. East Rutherford Mayor Jeffrey Lahullier didn’t immediately respond to a phone call from CoStar News.