In March 2016 Middlesex County missed the deadline for the repayment of $1 million interest on a $20 million loan. A loan that was borrowed from the Casino Reinvestment Development Corporation. Middlesex County borrowed this money in 2005 and has defaulted on a number of payments. The money was used to help build the Heldrich hotel and conference center by the New Brunswick Development Corporation which is a not for profit organization.
This corporation was promoted by State Senate President Steven Sweeney as a shining example, about what can happen when monies are given to private firms for large scale construction. New Brunswick Development Corporation also represents Atlantic City. Christopher Paladin a lawyer was the catalyst for getting the $20 million loan. He has insisted that the money will be repaid but some added time must be given.
The two hundred and thirty five room hotel has been feeling the pressure. It has some difficulties filling room in 2015. The hotel had to rely on the corporation for help with thing like mattresses and floor covering renewals. A law was signed in December 2015 by Chris Christie of New Jersey, it will put a stop to state agencies from giving loans or grants to non profit organization.To read more on this interesting article, visit: www:pressofatlanticcity.com/news/breaking/unpaid-million-crda-loan-raises-questions-about-new-brunswick-devco/article_a03318e2-dcdb-11e5-a563-6711bc7b7bc.html
The New Brunswick Development Corporation (DEVCO, is a not for profit company. It began it’s operation around the 1970’s. Their main and only aim is to give the City of New Brunswick rebirth. New York times one called them “an influential device”. Since their inception they have already invested $1 billion in the New Brunswick area even with the bad economy and challenges, they continue to make stride.
At Gateway Transit village one can find Rutgers University bookstore, classroom space and about 150 luxury apartment. There is also Robert Woodward Johnson Health and wellness Plaza, here you will find fitness centers. Devco says in the next eighteen months Albany Street will again see the beginning of another phase. They want to attract advanced Tech and Biological service firms. With all this growth New Brunswick is placing itself as one of the best places to do business and live in New Jersey.