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Can the database server reach that IP and port?
Well, well... No, it cannot reach the IP address. I am guessing that is a problem. I will ask the network group to enable the reverse connection through the tunnel and see if that helps.
edit: 09/12/2014 - Jeff hit on it exactly. After the vpn tunnel was opened up for reverse connections (Db server -> Dev Client) the debugger worked perfectly. I have marked Jeff's "answer" as correct.