According to a recent article in the Press of Atlantic City, the Middlesex County Improvement missed their deadline to pay the principal and interest on their $20 million loan. This is not the first deadline that they have missed. They have missed several payments over the last five years, adding up to a sum of $ 7 million.
The loan was used to renovate the Heldrich Hotel. The renovation created The Heldrich which is now a hotel and conference center. The developer overseeing the project was the New Brunswick Development Corporation (Devco). Devco is a non-profit organization.
However, unfortunately for Devco, hotel and conference center continues to attract customers. Due to the fact that the hotel is not bringing in money, Devco had to spend its own money to buy mattresses, replacement carpets , and take care of other expenses for the hotel. The head of Devco, Chris Paladino, stated that they took an ugly hotel and made it into something beautiful. However, he did admit that he too will be happy when the loans are paid off.
Devco was founded in the 1970s and is an urban real estate development company. Their motto is that a city is never complete. They believe that revelation in the urban sector is always a continuing project. The private, nonprofit corporation model for redevelopment is simple. They take the time to understand what the people of New Brunswick need, and add that to the needs of the people who work there as well as visitors who spend their time there, and then they create projects that will benefit everyone.