In 2005, the Middlesex County Improvement Authority took a $20 million loan from the Reinvestment Development Authority. The loan was meant for the construction of The Heldrich, a hotel based in Brunswick, which would also include a conference center. The project was completed in time and despite the hard economic times, the 235-room hotel opened in 2007. This was followed by a downturn that was characterized with lack of guests, thereby making repaying the loan a challenging affair.
The project was implemented and managed by Devco (The Improvement Authority), so the arrears accumulated due to the default were directed to the company. As of 2012, as much as $7 million in missed payments had accumulated, but this did not stop Devco from proceeding with the project since there were elaborate plans that would help to revive the business.
In 2015, the hotel achieved an occupancy rate of 65 percent, which is way above what had been experienced in the previous years. Christopher Paladino, the head of Devco, expressed hope in the company and is optimistic the project will gradually gain strength and eliminate the liabilities that have since cash-strapped the hotel, cites an article published on the Press of Atlantic City.
Devco: Building the future and actualizing dreams
Devco (New Brunswick Development Corporation) is a not-for-profit real estate development company that was established in the 70s to work as a catalyst for the revitalization of cities. The company has been mentioned by the New York Times as a vital engine for economic development, and has helped to revitalize the city.
Since its launch, Devco has worked on more than $1.6 billion worth of projects, and due to the unique approach towards development that has been applied by the company, more modern projects have been launched to help create the future. The re-development policy applied by the company is based on public policy and is directed at eliminating mechanical challenges that may make projects impossible.