The Casino Reinvestment Development Authority granted a $20 million loan to the Middlesex County Improvement Authority who is now in arrears on the principal and the interest to the tune of $1 million. They have been in arrears for the last five years adding up to almost $7 million in missed payments.
The loan, which was made in 2005, was for the construction of the Hildrich Hotel and Conference Center and was developed by DEVCO, a not-for-profit corporation. DEVCO was a model for the Atlantic City Development Corporation which is expected to direct more than $200 million from private and public finance. This includes a $19.5 million CRDA loan which will be used to fund a project in New Brunswick’s Chelsea section.
Chris Paladino, an attorney, is the head of both the Atlantic City Development Corp. and DEVCO. According to a statement from him, the CRDA loan will be paid but he expects it to take a few more years to do so.
Due to the economy, the 235 room Hildrich which was opened in 2007 has been struggling to attract guests. The Devco Corp. had to take about $776,000 from its own accounts for the basic capital expenses fund because the hotel is so strapped for cash. Mr. Paladino said that the money was for such things as new carpeting and mattress replacement.
This article was written by the Press of Atlantic City and can be read in its entirety at http://www.pressofatlanticcity.com/new/breaking/unpaid-million-crda-loan-raises-questions-about-new-brunswick-devco/article
DEVCO was founded in 1970 in order to form a catalyst for city revitalization. The New York Times terms DEVCO as a “powerful engine for economic growth”
Their projects are developed by understanding the people who work, and live or even visit New Brunswick’s needs and they are always looking towards the future.