According to a report published by the Press of Atlantic City on the 29th of February 2016, the Middlesex County Improvement Authority once again has failed to pay the Casino Reinvestment Development Authority the money it owed them that spans to over five (5) years in arrears. According to the Casino Development Authority, the Middlesex County Improvement Authority owes them a total of $1 million in principal cash and $20 million in acquired loans. Apart from this, it’s estimated that the Improvement Authority has racked a total of $7 million in cash arrears with the money spreading evenly in a span of five years.
Chris Paladino heads both these organizations, and he was the main driving force behind the $20 million loan acquired by the Middlesex County Authority cooperation. The $20 million loan the company applied for and failed to pay was mandated for the construction of The Heldrich Hotel, as well as a conference center located in New Brunswick.
Though the loan was acquired in the year 2005, and the construction completed in 2007, the hotel on its own has failed miserably to attract clients, a fact that has been seen as the main reason behind its predicaments. According to Christopher Paladino, the state of the hotel is so dire to the extent that they had to pump in a total of $776,000 to support the purchase of mattresses and carpets as well as the overall maintenance of the hotel.
According to the state Senate President Stephen Sweeney, the poor management and the eventual failure to pay up the loan has been attributed to trusting private entities with massive amounts of money.
Though senior bondholders have been paid up to $30 million with interests of about 5%, the same can’t be said about the subordinate shareholders, who haven’t received anything yet from the company.
Development Cooperation (DEVCO) is non-governmental company that specializes in real estate and property development in different parts in the USA. The Company also specializes in funding projects to a wider group of real estate owners who need an extra boost in constructing and maintaining estates.