The Press of Atlantic City reported about Middlesex County Improvement Authority’s $1 million missed loan payment consisting of both principal and interest to the CRDA. This missed payment adds arrears to the other missed payment dating five years back. Currently, the missed payments amount to an estimate of $7 million. The payments are aimed at servicing a $20 million loan that was taken from the Casino Reinvestment Development Authority.
The loan was used to finance the construction of The Heldrich, which is a conference and hotel facility. In this case, New Brunswick Development Corporation was the contractor for the project. The $20 million loan makes up part of the $107 million loan that was sourced by Devco in a bid to develop The Heldrich.
The Cause for the Delayed Payments
Attorney Christopher Paladino, who heads New Brunswick Development Corporation, cited that CRDA would still receive its payment though some additional period may be required. The Heldrich has been experiencing financial complications to the point that DEVCO had to provide it with $776,000 to finance its operating expenses such as carpet replacement. The article was written on Press of Atlantic City
Full link: http://www.pressofatlanticcity.com/news/breaking/unpaid-million-crda-loan-raises-questions-about-new-brunswick-devco/article_a03318e2-dcdb-11e5-a563-67611bc7b7bc.html
New Brunswick Development Corporation, which is also known as DEVCO, is among the largest development entities in New Brunswick. The Corporation is a non-profit urban real estate development company, which was founded in the 1970’s.The company has created an impressive reputation in the real estate development sector through its award-winning projects. Devco utilizes innovative project funding structures, strong public-private partnerships as well as its skills in developing strategic alliances to come up with creative projects.
The company has proudly been able to create a model for redevelopment that is nationally recognized. All DEVCO’s projects come from a deep-rooted understanding of the requirements of the individuals who reside, visit or work in the New Brunswick area. Currently, the company is working on a $300 million initiative that is set to redefine Rutgers.