As lawsuit drags on, EPCAL’s future is in limbo, tied to American Dream developer Triple Five

Triple Five Group, the Canadian conglomerate fighting to enforce its stalled $40 million land deal at the Enterprise Park at Calverton (EPCAL), is facing fresh financial strain after bondholders were told there weren’t enough funds to cover scheduled debt service payments on its American Dream mall in New Jersey.

The trustee for a 2017 bond issue disclosed on Aug. 5 that funds were insufficient to make the Aug. 1 payment due to bondholders. The debt service payments are tied to sales tax revenues at the mall and payments in lieu of taxes (PILOTs). The PILOT amounts were reduced after Triple Five successfully challenged the property’s tax assessment and lowered its obligations.

Meanwhile, Triple Five’s American Dream Miami, which was approved by the Miami-Dade County in 2018, remains years behind schedule. The company has yet to break ground on the project, spurring legal action by the county. Triple Five is also litigating control of land near a highway interchange with another developer in the area.

With Triple Five’s finances under renewed scrutiny after the New Jersey debt service shortfall, Riverhead’s long-sought development driver remains caught in uncertainty — tethered to the fate of a developer known for big ambitions, repeated delays, and drawn-out litigation.

CAT filed suit against Riverhead Town and the Riverhead Industrial Development Agency in January 2024 after the RIDA denied its application for financial assistance and the town moved to terminate the contract of sale in October 2023. The complaint accuses the town of breaching its obligations under the 2018 purchase agreement, including failing to complete a required subdivision map, and alleges officials concocted a “fraudulent scheme” to escape the deal.

State Supreme Court Justice David Reilly heard arguments on the town’s motion to dismiss the suit last November. A decision remains pending.

At the same time that CAT filed the lawsuit it also filed a notice of pendency with the Suffolk County Clerk. That filing prevents the town from selling, leasing, or borrowing against the EPCAL property until the lawsuit is resolved.

Triple Five, based in Alberta, Canada, is best known for its Mall of America in Minnesota and the West Edmonton Mall in Canada.

Unlike its retail ventures, Triple Five’s Calverton plan focused on aviation-related industry. 

CAT proposed a massive logistics hub centered on EPCAL’s two runways, once used by Navy contractor Grumman to assemble and test military aircraft.

The company first unveiled detailed plans in its application to the RIDA, which it presented to the RIDA board in September 2022, seeking tax breaks and other financial assistance from the agency. The plan called for:

• 8.4 million square feet of logistics and distribution space
• 400,000 square feet of non-warehouse space in three smaller buildings
• Runway upgrades, new taxiways and aprons to accommodate aircraft, and reactivation of the GPS approach system
• Extension and improvements to the site’s rail connections

Renderings and a detailed market study presented at the September 2022 RIDA supported CAT’s plans for EPCAL as a potential air cargo hub to serve Long Island’s growing logistics needs.

Community backlash and rejection

The plan immediately drew strong community opposition, with residents and critics warning of traffic, environmental impacts, and missed opportunities for other types of development.

Town officials moved to distance themselves from the plan, though the town community development agency, which owns the property, had signed onto a joint application with CAT to the RIDA. After the presentation drew blowback, CAT insisted it did not plan an air cargo hub at the site, and that the IDA presentation was only preliminary.

On Oct. 23, 2023, the Riverhead IDA denied CAT’s application, citing its failure to provide requested information and inability to meet agency standards. The next day, the Town Board unanimously voted to cancel the deal, exercising an option under a 2022 agreement.

CAT blasted both actions, calling the town’s move “indefensible” and the IDA’s findings “grossly erroneous.”

Nearly a year later after arguments on the town’s motion to dismiss, with no court decision rendered and very likely a long road ahead in court no matter what Justice Reilly decides, the fate of the 1,644 acres in Calverton remains in limbo.