It has come to the attention that Middlesex County Improvement Authority has not paid the obligated $1 million in principal for a $20 million loan. The loan was given by Casino Reinvestment Development Authority. The loan was established in 2005 to go towards constructing The Heldrich. The Heldrich is a hotel and center for holding conferences. The New Brunswick Development Corporation was involved with the development. Chris Paladino who is an attorney involved with the case regarding the unpaid payments mentioned that the Casino Reinvestment Development Authority will be paid the amount it is owed in several years. Since opening in 2007 The Heldrich has run into problems trying to attract many guests. The corporation had to use about 776,000 of its own money to help fund basic expenses.
The loan provided by the Casino Reinvestment Development Authority is supposed to be paid back with revenue made by The Heldrich. The hotel as stated before has not performed to the expected standards. As this issue continues to get sorted out the Atlantic County Improvement Authority is getting ready to loan $120 million for Gateway Project. Atlantic County Improvement Authority is very confident shortfalls and financial woes like The Heldrich will not be experienced. For more information read the article found on Press of Atlantic City by clicking this link.
Devco is a nonprofit real estate company. Devco was founded during the 1970’s to act as a facilitator for revitalization of the city. Devco has helped the city to achieve remarkable expansion throughout the years. This company specializes in building tactical alliances, strong partnerships, and groundbreaking financial structures. Devco has been involved with New Brunswick reaching close to $1.6 billion in investments.
In conclusion, unpaid loans continue to raise questions in the real estate news while structural buildings are underway.