Recently an article was written in the Press of Atlantic City website calling into question the repayment of a loan that the Middlesex County Improvement Authority received from the Casino Reinvestment Development Authority (CRDA).
The $20 million dollar loan was part of a development package used by the New Brunswick Development Corporation (DEVCO) to bankroll the renovations of The Heldrich Hotel. The Heldrich is a 235 room hotel that sits in downtown New Brunswick. The renovation is part of a city wide initiative to draw more visitors to the New Brunswick area.
Currently the hotel is operating at about 63% capacity, but the attorney that brokered the deal for the New Brunswick Development Corporation, Christopher Paladino stated that he is not concerned with immediate repayment at this time and stated it would be a few more years for repayment. Major shareholders have received payment in the amount of $30 million dollars while minor shareholders haven’t seen a payment in years.
On the plus side, the Heldrich employs about 235 workers and generates 1.2 million in taxes for the city of New Brunswick. Backers of the hotel are positive that the hotel’s visitor rate will build up and be an asset to the city of New Brunswick.
DEVCO is a non profit redevelopment corporation that was founded in the 1970’s geared toward the rejuvenation of the downtown New Brunswick area. Praised for its economic model in development, DEVCO has overseen 1.6 billion in economic development for the city. DEVCO always has projects in development, capitalizing on past enterprises and seeking investors and funding for new projects.