DEVCO’s Financial Misunderstandings
Back in 2005, the Middlesex County Improvement Authority acquired a $20 million loan from the Casino Reinvestment Development Authority. Just recently they failed to pay $1 million installment on that loan. This doesn’t come as a shock to some considering the Improvement Authority has racked up nearly $7 million in missed payments over the last five years. Senate President Stephen Sweeney touted the corporation, calling them a paragon of what can be done with public dollars when funneled through private firms.
The corporations involved are headed by attorney Christopher Palandino, who was also the person that arranged for the $20 million loan. According to him, he says that the loan will be paid but it will take a few more years. The 235-room Heldrich has been struggling to attract guest since it opened in 2007. The hotel is actually so cash-strapped that it’s used over $700,000 of its own money to pay the bills and other expenses. Despite these struggles, the hotel has performed anemically over the years. Its senior bondholders have been paid with 5% interest. For more information, refer to the original article http://www.pressofatlanticcity.com/news/breaking/unpaid-million-crda-loan-raises-questions-about-new-brunswick-devco/article_a03318e2-dcdb-11e5-a563-67611bc7b7bc.html written on Press of Atlantic City.
The New Brunswick Development Corporation is a private, nonprofit urban real estate development company. It is recognized as a powerful engine by the New York Times. It specializes in strategic alliances and strong partnerships that lead to innovative project financing structures. The talent demonstrated by Devco has earned it a diverse array of awards. Since its founding, the company has dealt with $1.6 billion of investments in the New Brunswick area. Even when times are challenging, the city’s redevelopment industry stands strong because of the DEVCO’s unique and experienced approach to solving problems. DEVCO is truly focused on the future.