President of Devco Responds to Questions Concerning CRDA $20 Million Loan

DEVCO, a non-profit urban real estate development corporation and developer of the Heldrich Project was questioned about repayment on a loan provided by Casino Reinvestment Development Authority (CRDA). The $120 million project was financed by CRDA, tax-exempt bond financing, State of New Jersey Grants, private equity, and New Jersey Redevelopment Authority Loan. CDRA contributed $20 million to the Heldrich project fund and hasn’t received payments in the amount of $1 million, according to the Press of Atlantic City (February 29, 2016). Middlesex County Improvement Authority failed to make payments, including interest and principle. Christopher Paladino, the President of Devco responded to questions, providing reasonable facts about the economy and loan repayment.

Middlesex County Improvement Authority neglected to pay approximately $7 million for five years. Paladino is aware of the repayment arrearage and assures the Press of Atlantic City the loan will be paid within two years. He directed the corporation and organized the

$20 million loan to help finance the Heldrich project. Middlesex County owns the Heldrich Hotel and hasn’t generated enough revenue to pay on the loan. When the hotel opened its doors to the general public in 2007, it was during the beginning of an economic downturn in the United States.

Now that the Heldrich Hotel is completed and operating in New Brunswick Development Corporation, Paladino is sure the hotel will eventually pay all its debts. He said that economic influences had an enormous effect on the hotel inability to pay on the loan. Heldrich Hotel was obligated to pay its unionized employees, real estate taxes, and maintain the property for quests. Some of the most recent projects Devco developed are Heldrich, Rutgers Public Safety Building, Gateway Transit Village, and Child Health Institute of New Jersey.

 

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