Browse Category: Million Dollar Loan

Unpaid $20 million CRDA loan is raising queries about New Brunswick Devco

Devco is an investment organization that is aimed towards supporting medium-sized Nordic companies, together with existing stakeholders, grow. DevCo focuses on individual company and business investments into the medium-sized companies with an international potential and considerable growth, which typically has revenues that are $60 to $600 million. Opposed to the traditional funding model, the company now focuses on a limited number of firms, which enables them to provide operational support for the sustainability of long-term development.

The company is striving to be the active owner and offers:

  • Long-term financial resources aimed towards supporting future growth
  • State-of-the-art individuals on the board
  • Operational support that implements and initiates well-defined development programs

DevCo is a company based in Finland and is backed by big investors with a long horizon in ownership.

This past month, Middlesex Regional Improvement Authority failed to pay $1 million in interest and principal on their debt of $20 million loans that was granted to them by the Casino Reinvestment Development Authority (CRDA)

The Improvement Authority had been in arrears for five years now, racking up more than $7 million in skipped payments. The loan, completed in 2005, saw the financing of the construction of the Heldrich building, a New Brunswick Development Corp.

The company has been flaunted by Stephen Sweeney, the state Senate President, as the example of what can happen when state and public money is channeled towards private companies to execute large-scale construction. The New Brunswick outfit is also part of the model for the Atlantic City Development Corp., a sister company expecting to manage more than $200 million of private and public financing – including the $19.5 million in new CRDA cash- to develop the Chelsea section of the City Gateway project. Press of Atlantic City wrote this article.