New Brunswick Development Corporation (DEVCO) has been involved with many projects that were vital to the revitalization of New Jersey. This was so that the city could experience growth in its economy. DEVCO has also worked to provide some strong alliances that would help build the city and bring forth new visitors and even residents. They have overseen more than $1 billion in investments. DEVCO has been very busy with the redevelopment of the city through all conditions of the economy. Among the projects that the corporation has been involved in a bunch of mixed-use projects that proved to be very effective.
The most recent project is The Heldrich, which is a hotel and conference center which was developed by DEVCO. There is also an unpaid debt by the Middlesex County Improvement Authority. The total of the loan that the Improvement Authority received is $20 million. The loan has been given out more than 10 years ago. As of right now, the hotel is still struggling to attract visitors. It also doesn’t helped that the hotel was complete when the economic downturn was occurring. The hotel has 235 rooms with an occupancy rate of 63.5%. Another troubled aspect of this hotel was that it took out $776,000 of its own finances for the funding of capital expenses. For instance, the carpet needed to be replaced.
As of right now, there is a plan to pay off all of the loan. It is just going to take a bit longer than they hoped. Given the anemic performance of the hotel, it does look like the loan is going to take a long time to be paid off. DEVCO does acknowledge the riskiness of the loan. However, they do state that this is what they do. They make risky loans. After all, without risk, there is a smaller chance of reward. More info posted on the Press of Atlantic City website.