Originally reported on Press of Atlantic City, the Middlesex County Improvement Authority failed to make a 1 million dollar payment on a 20 million dollar loan. They received this loan from the Casino Reinvestment Development Authority. This improvement authority has already been behind in their payments, totaling 7 million dollars in late payments. The purpose of the loan was to finance the Heldrich, which was a New Brunswick hotel and conference center developed by the New Brunswick Development Corp.
The corporation headed by attorney Chris Paladino claims the CRDA will be paid, but it will take longer than expected. Since the 2007 opening, the hotel has failed to attract the occupancy rate expected. The hotel is in such need of money that it had to borrow 776,000 of its own money to cover expenses for mattress and carpet replacement. These development companies understand that they make risks in order to fund projects that will help communities grow and increase employment.
Devco is a corporation that believes urban revitalization is a ongoing process. They are a non-profit real estate development firm that works with projects to help the city’s growth. The key to their success it to make sure they have multiple projects going in order to ensure maximum success.