Category Archives: Public Money

People doubt the success of the New Brunswick DEVCO Due to Loan Default

Published / by BDtop

Back in 2005, Casino Reinvestment Development Authority financed the building of The Heldrich, a New Brunswick hotel and conference center. New Brunswick Development Corp. developed The Heldrich. In January 2016, the Middlesex County Improvement defaulted to pay $1 million in principal and interest on the $20 million loan it had received from the CRDA (Casino Reinvestment Development Authority).
According to Press of Atlantic City, the improvement authority had failed to repay the loan for five years, and the arrears were approximate $7 million. Due to this, Stephen Sweeney has touted the corporation as a paragon of the outcomes when public money is channeled through private entities to implement large-scale construction. Christopher Paladino promised that the money will be paid in a few years time. The Heldrich has 235 rooms and it has been struggling to attract visitors ever since it was opened in 2007. In 2015, the occupancy rate was 63.5%. The hotel is performing anemically and is not able to fund its upkeep.

New Brunswick Development Corporation (DEVCO) was founded in the mid-1970 with a purpose of speeding up the city’s revitalization. It is a private non-profit urban real estate development firm. Devco’s expertise in creating strong public-private partnerships, strategic alliances, and inventive project financing structures has given rise to adverse inventory of successful mixed-use projects. Since its launch, DEVCO has administered approximately $1.6 billion of investment in New Brunswick.

References
http://www.pressofatlanticcity.com/news/breaking/unpaid-million-crda-loan-raises-questions-about-new-brunswick-devco/article_a03318e2-dcdb-11e5-a563-67611bc7b7bc.html