Last month saw the Middlesex County Improvement Authority fail to submit a payment of $1 million in principal as well as interest on a loan bankrolled back in 2005. The loan, totaling $20 million, was from the Casino Reinvestment Development Authority. The Improvement Authority has already racked up $7 million in missed payments over five years.
The loan was used in the construction of the Heldrich on pressofatlanticcity.com, a new hotel and conference center in the city of New Brunswick that was developed by the New Brunswick Development Corp. State Senate President touted the corporation as an ideal of what happens when public resources are channeled through private firms for the execution of large construction projects.
The Heldrich, which has 235 rooms, was opened in 2007. This was a time that the economic downturn was creeping in. The hotel has not had as many guests as expected, with last year’s occupancy rate standing at 63.5%. Its largest account was Johnson & Johnson. The executives of the organization are also board members of the New Brunswick Development Corp.
DEVCO (New Brunswick Development Corporation) is a private nonprofit firm that specializes in urban real estate developments. DEVCO has been a catalyst for the huge number of projects that has seen New Brunswick emerge as a statewide leader in sectors that include education, healthcare, travel and government.
For every project that DEVCO undertakes, there is a set of goals to be achieved. Each of the goals has a component of service both to the community and greater public. Since being founded in the mid-1970s, DEVCO has overseen investments of approximately $1.6 billion in New Brunswick.
For the original article by the Press of Atlantic City, click here.