The Heldrich, which is a new conference center and hotel in New Brunswick, was developed in a continuous effort by the Middlesex County Improvement Authority to boost the city’s development. However, the construction of the Heldrich required financing for successful completion, which led the Improvement Authority to take up a loan of $20 million from the Casino Reinvestment Development Authority. However, the Improvement Authority for another consecutive time has failed to honor the terms of its agreement with the CRDA by failing to make payments on the loan. The missed payments have currently accumulated to a total of $7 million.
A Statement by Attorney Paladino
Christopher Paladino heads both the Atlantic City Development Corporation and its sister company, the New Brunswick Development Corporation (DEVCO), which developed The Heldrich. In an interview with the Press of Atlantic City, attorney Paladino said the CRDA loan would be paid in full, but the repayment would take several more years. In addition, he said that DEVCO helped the hotel with $776,000 since it was short of cash to meet its capital expenses.
Funding for the Heldrich
This financing included the CRDA $20 million loan. In addition, the funds also comprised of $70 million in terms of municipal bonds, which were issued by Middlesex County Improvement Authority. Originally published at Press of Atlantic City http://www.pressofatlanticcity.com/news/breaking/unpaid-million-crda-loan-raises-questions-about-new-brunswick-devco/article_a03318e2-dcdb-11e5-a563-67611bc7b7bc.html
Details about DEVCO
DEVCO, New Brunswick Development Corporation, is a development company in the real estate industry. It was established in the 1970’s to act as a facilitator for the New Brunswick city redevelopment.
The company has been part of an estimated sum of $1.6 billion in investment projects since it was launched in New Brunswick. Its unique methodology to redevelopment has been instrumental in revitalizing New Brunswick even during the economic challenges experienced in the United States.