New Brunswick Development Corporation (Devco) is on the spotlight after a report revealed that the company failed to pay principal and interests on its $20 million loan from CRDA. In an article from Press of Atlantic City, the company, which is already in arrears for five years, apparently applied for a loan to enable it fund the construction of a new hotel and a conference center.
According to the corporation’s CEO Christopher Paladino, the $20 million loan will be repaid in full, but the process may take longer than expected. The hotel, which was financed by the loan started operating in 2007, but due to stiff competition, it is still struggling to attract new customers. According to sources from the inside, the hotel is performing so dismally that Devco has to channel over $500,000 to fund its primary expenses.
DEVCO is also known as New Brunswick Development Corporation. It is a private firm founded in 1970s to control projects that are meant to enhance the development of New Brunswick as a modern city. The corporation was once recognized by the New York Times as a powerful revitalizing engine in the city. It has received many awards for its projects.
The company is managed by Christopher J Paladino as its President. Other key figures include Sarah F Clarke, Allison V Brown and Randall L Currier. Devco has overseen nearly $1.6 billion of projects, which makes it one of the largest non-profit corporations in New Brunswick. Some of its projects include Rock Hall University Apartments, Gateway Transit Village, Civic Square Public Safety Buiding and the Lord Stirling Community School. For many years, the government has looked up to Devco for innovative ideas on how to improve the city. Despite the current challenges, the corporation is still one of the best in New Brunswick.