A loan that funded the non-profit New Brunswick Development Corporation has gone unpaid yet again by the Middlesex County Improvement Authority. As reported by the Press of Atlantic City, the most recent missed payment of $1,000,000 adds to the total arrears of almost $7 million that the company has racked up in recent years. The head of the corporation, attorney Chris Paladino, stated that the loan would be repaid, but it would take longer than originally anticipated.
The hotel and conference center has struggled to even attract people, let alone turn a profit, although the owners hope for a timely turnaround on business. The bonds that it still owes money on are supposed to repaid by the hotel’s profits, but those profits remain unearned. It is unclear what will happen to the company if they cannot meet their financial obligations going forward.
Devco is a development company that claims it is the model for uniqueness in urban redevelopment. It borrows monies from public funds to enhance and invigorate urban downtown centers, although its actual performance in real life has been met with exceedingly mixed reviews by city leaders and community watchdog groups that monitor such activity.