Devco is the urban developer who designed and built a huge, modern, and appealing conference center in New Brunswick. Devco is a non-profit organization dedicated to the revitalization of this city in New Jersey. The $20 million construction loan that Devco received from the Casino Reinvestment Development Authority (CRDA) has become in arrears, with about $7 million owed in back payments. Those who are administering the implementation of plans to use the money in the building of the site are still hoping to complete repayment, just a little late.
In an article on pressofatlanticcity.com, the payments made to date have been enough to cover the center’s overhead, but little more. Christopher Paladino is the lead attorney for the Atlantic City Development Corporation (ACDC) that provided administrative support for the project to build the hotel. The original deal was put together by Paladino, which utilized a beautiful award winning design. He is not worried about the problems repaying the loan and says the delays are understandable, given the current economic situation.
The hotel and conference center includes nice meeting rooms and other facilities, but has yet to break even. The occupancy rate has never risen above 63 percent.
Most of the investments in the ACDC were made by local investors in New Brunswick. Devco’s distribution into several revitalization projects have totaled $1.6 billion! The objective is to improve the areas living conditions and economy while still gaining profits for their investors. This Press of Atlantic City story has all the details.