Category Archives: Finance Stability

New Brunwick Devco Remains in Financial Trouble

It has been over a decade since the Middlesex County Improvement Authority received a $20 million loan for the construction of a hotel. That hotel, the Heldrich, was developed by the New Brunswick Development Corporation and opened in 2007 right when the Great Recession hit. As a result, the hotel has struggled to attract guests, and the MCIA and New Brunswick Devco have struggled to repay their loans. As reported in The Press of Atlantic City, MCIA could not pay the $1 million principal on that $20 million loan given to them by the Casino Reinvestment Development Authority Your text to link… . Over the past five years, the Middlesex County Improvement Authority has missed $7 million in payments. Meanwhile, New Brunswick Devco’s hotel is largely empty. In 2015, the Heldrich’s occupancy rate was 63.5 percent. Devco also had to use over $776,000 of its own money to help pay for basic operational costs, including the purchase of new mattresses and new carpeting.

The New Brunswick Devco is a non-profit company created during the 1970s. Its goal is to help with urban renewal in the city. Since its inception, DEVCO has overseen $1.6 billion worth of projects. These include the Gateway Transit Village, the Riverwatch Residential Community, and the Middlesex County Family Courthouse.