Press of Atlantic City reports that the Middlesex County Authority has for the past five years missed over $7 million in missed payments on a $20 million loan made by the Casino Reinvestment Development Authority. And they just added to that by missing another $1 million principal payment. The original loan was made in 2005 for the purpose of funding the construction of a new hotel and conference center.
The hotel opened in 2007 right before the national economic hard times and has struggled to get guests ever since. This is why its lawyer says it will be at least a couple more years before his clients can make any payments. Its present financial downturn should not be seen to mean that the company is a failure and has always been doomed to die. The non-profit company that borrowed this money, New Brunswick Development Corporation (DEVCO), is pretty hard up for funds.
New Brunswick Development Corporation was first established in the mid-1970s as a means to spur on city growth through real estate development and construction. And the present booming state of the city owes much to its work. It could not have achieved such without Devco’s assistance. During its many years of existence, the company has overseen around $1.6 billion of work.