The past month saw Middlesex County Improvement Authority fail to honor its payment of $1M in both interest and principal on a loan facility it got from Casino Reinvestment Development Authority (C.R.D.A.). Prior to last month’s default; the Improvement Authority had arrears for almost five years bringing the total to $7 million of the payments that it had missed. The loan in question was made back in 2005 and was used in constructing The Heldrich, a new hotel and conference center in Brunswick owned by the New Brunswick Development Corp., a nonprofit.
Stephen Sweeney, the state Senate President heralded the agreement as a great example on how public dollars can be used through private firms to finish large scale construction projects. Chris Paladino, an attorney who arranged this loan stated that the debt would be paid but it would take some more time. The Heldrich has 235 rooms and has struggled to attract clients due to the economic downturn that took place when it was opened in 2007. The hotel is cash-strapped to a point that it relies on the corporation funds to offset some crucial capital expenses. You can read more on this in an article on Press of Atlantic City.
It refers to the New Brunswick Development Corporation (Devco), which is a nonprofit, private urban real estate development organization. It was created in mid-1970s in order to start redevelopment projects and also enable the private and public development investment in New Brunswick City, New Jersey and other communities based there. Its success is pegged on cultivating public-private partnerships and uniting New Brunswick interests. Devco is capable of making redevelopment projects that have a huge impact by leveraging public, private, federal, local and state resources. It accomplishes its mission by developing mixed-uses projects in order to reclaim an urban lifestyle and set a tempo similar to other great U.S. cities.