Press of Atlantic City recently published an article about New Brunswick Devco. Press of Atlantic City claimed that Devco failed to pay $1 million in principal and interest on a $20 million loan it received from the Casino Reinvestment Development Authority. The loan was made to Devco for Heldrich, a New Brunswick hotel and conference center developed by a nonprofit called the New Brunswick Development Corp. CRDA Executive Director John Palmieri acknowledged that the repayment of the loan has not gone as planned; however, Palmieri recognized at the start of the loan that it would take longer the average amount of time for the loan to be repaid.
Devco is a private nonprofit urban real estate development company founded in the mid-1970’s to serve as a catalyst for the city’s revitalization. Devco believes their expertises lies within the strategic alliances, strong public-private partnerships, and innovative project financing structures. Devco works on a number of different projects, some of them award-winning. Devco to this day has overseen nearly $1.6 billion of investment in New Brunswick. All of these investments serve as a greater good for the community, and not just there to suck money out of people and consumers.
Even with the struggle in the economic world, Devco has managed to persevere because of their unique strategy when it comes to redevelopment. Each project Devco gets involved in is for a higher purpose, they are the statewide leader for education, healthcare, industry, the arts, travel, and government. It seems that the Press of Atlantic City article, shows the company in some distress because they are having trouble paying off their loan debt. However, it seems like they are quickly turning around and will be able to begin paying off the loan as soon as they get back on their feet again.