New Jersey politicians, Senate President Stephen Sweeney and Governor Chris Christy have problems with State Agencies and defaulted loans. After N.J. Democratic Senator learned Middlesex County Improvement Authority defaulted on a $20 million loan, he publicized Devco as a model of what can be done when public dollars are directed through private firms to complete upscale construction, according to the Press of Atlantic City. A law has been signed by Governor Christie banning state agencies from offering or providing loans, and grants to businesses and non-profit organizations with defaulted state issued loans and bonds. The law may prevent agencies, including Devco from arranging future loans to Improvement Authority. Heldrich Hotel is owned by Middlesex County and hasn’t paid on the $20 million loan in years.
Subordinate bondholders are still waiting for their repayments, including the principle plus interest. Devco and Casino Reinvestment Development Authority are sure the loans arrearage will become current with a two-year timeframe. The Heldrich Hotel is definitely responsible for repayment of the loan with its earned revenue. Since the hotel opened in 2007, enough revenue hasn’t been generated to cover all expenses incurred by the establishment.
DEVCO is an award winning New Jersey non-profit development corporation that facilitates urban real estate projects. The first award the agency won was for Riverwatch Commons in 1997, followed by awards for Middlesex County Family Courthouse in 2000, 2001, and 2004. From 2000 until 2008, Devco won awards for the Heldrich Redevelopment Project.
The non-profit organization has experience creating strategic deals, solid partnerships, and structured project financing. Devco has successfully accomplished its mission of redeveloping and developing New Brunswick and the State of New Jersey.