In a Press of Atlantic City article, it has been reported that the Middlesex County Authority has failed to make their $1 million dollar payment on a $20 million dollar loan. They received this loan from the Casino Redevelopment Authority. This is not their first missed payment, they are almost $7 million in backed up payments over the past five years.
The original loan was made in 2005 to finance the Heldrich, a New Brunswick Hotel and Conference Center, that was developed by the New Brunswick Development Corp. The New Brunswick Development Corp, Devco has been set up as an example of what public money can be done with non-profit and is the model for Atlantic City Development Corp. Both New Brunswick and Atlantic City are led by attorney Chris Paladino.
The Heldrich, which opened in 2007, has failed to make the profit expected. That loan was part of a $107 million dollar. The rest of the package was stitched together by $70 million in bonds. They are hoping with the recovering economy that the Heldrich will start to repay the loan soon.
New Jersey Development Corporation is a company that specializes in urban development. They work with what the people need within the community to strengthen the community. They use their expert knowledge to leverage resources to public-private partnerships to develop urban projects that work.