Questions have been raised over Middlesex County Improvement Authority’s failure to pay a principal of $ 1 million and an interest of $20 million that was loaned by the Casino Reinvestment Development Authority. The loan was used in bankrolling the construction of The Heldrich. This development is a new hotel and conference center based in New Brunswick. The New Brunswick Development Corporation developed the Heldrich.
It is in 2007 that the 235-room was opened. The hotel has not been able to attract guests as per its expectations. In 2015, the occupancy rate stood at 63.5%. The hotel has been cash-strapped to the extent that it channeled part of its money, intended to expend other expenses, to pay for basic capital expenses.
The Atlantic County Improvement Authority is planning to float $ 120 million in bonds for the Gateway project. The money shall be used in developing a Stockton University satellite campus. It shall be repaid through the revenue raised from dorm-room as well as the sale of tax credits. Atlantic County Improvement Authority’s bond counsel, John Cantalupo, posited that he had reviewed the Heldrich financing and was certain that the Gateway bonds would not experience similar shortfalls. This information was originally reported on Press of Atlantic City as highlighted in the following link http://www.pressofatlanticcity.com/news/breaking/unpaid-million-crda-loan-raises-questions-about-new-brunswick-devco/article_a03318e2-dcdb-11e5-a563-67611bc7b7bc.html
New Brunswick Development Corporation (Devco) was founded in 1970’s to revitalize the city. The nonprofit company engages in urban real estate development. Through Devco, New Brunswick has registered remarkable renaissance. To date, Devco has invested more than $1.6 billion in New Brunswick. DEVCO continues to open one project, break ground for another project and financing as well as envisioning new projects for the future. Its exceptional approach to redevelopment has enhanced the robustness of New Brunswick. This is because of the many buildings that have been developed in the past and continue to be developed into the future.