Finished in 2007 by the New Brunswick Development Corporation (Devco), the 235 room Heldrich Hotel built in New Brunswick, New Jersey, has had the unfortunate luck to be moderately successful, but not successful enough to pay back the one million dollar first installment in principle and interest that is part of it’s twenty million dollar loan from the Casino Reinvestment Development Authority (CRDA). The CRDA loan is five years in arrears and has accumulated $7 million dollars in missed payments.
Chris Paladino, the Attorney that facilitated the real estate deal stated that the monies owed to the CRDA will be paid back, just on a later timetable than expected. The CRDA loan monies were low on the list to be paid back from the $107 million dollar total cost of the Heldrich loan. According to Paladino, senior bondholders have been paid back to the tune of $30 million plus 5% interest.
In December of 2016 Gov. Chris Christie signed a law stating that if a business or non profit has defaulted on the terms of their loan they will be denied loans for monies related to separate projects. Devco is confident that this new law won’t affect their other projects as it was written into the Heldrich loan the CRDA monies were to be paid back after the bondholders received their monies.
Devco is a 501 (3) (C) real estate development corporation that was created in the 1970’s and is seeking to revitalize the urban New Brunswick area through building projects aimed at generating business for the area. Devco has over 2.5 million square feet in active or established development amounting to over $450 million in investment.