Devco, the New Brunswick Development Company, is always making the pressofatlanticcity news. Devco recently signed a deal with Rutgets University for a $300 million project. That alone should tell people interested in learning about Devco a lot about the company. Devco has also been in the news in regards to a loan intended to finance a New Brunswick hotel dubbed The Heldrich.
The Press of Atlantic City reports Devco developed the plans for The Heldrich. The hotel and conference center was intended to be extremely impacting on business and tourism in the New Brunswick area. Things, however, did not work out as planned.
Devco helped put together a massive loan of $20 million Casino Reinvestment Development Authority loan that was directed to the Middlesex County Improvement Authority. Loans, of course, do have to be paid back. The repayment of this loan has turned out to be problem-plagued.
The Improvement Authority really does need to improve its approach to paying off debts. The entity has not made timely payments in about five years. It has reached upwards of $7 million in missed payments. Such news hardly speaks well of the borrower.
The Heldrich Hotel opened in 2007 to much fanfare, but very few guests. The economic collapse of 2008 created the perfect storm for fiscal troubles. The hotel was never able to book enough guests to remain solvent. As a result, repaying the hefty loan proved very difficult.
A rebound does not look likely, but things can change unexpectedly. New Brunswick’s real estate market and business community has proven to be dynamic in the past.