The Devco Development Company has been renovating the downtown district of New Brunswick since the 1970s. They remove the old, inhabitable, buildings and replace them with new construction.
In 2005, they built the Heidrich Hotel, a $105 million project, and today it is a beautiful hotel and convention center that otherwise would have been a dingy space. The Casino Reinvestment Development Authority, CRDA, with other lenders, made a loan to of $20 million to DEVCO for the new construction.
Because Devco has been working downtown for over 40 years, the loan was not a risk. Throughout the decades, Devco has used $1.5 billion in their renovations, and it has always been repaid. How else could they still be working in the same city? They have been working on the entire area and will continue to work towards the beautification of New Brunswick for years to come.
This New Brunswick Company is non-profit and has a vision and a passion for urban development. The Heidrick Hotel was built and finished, and the hotel opened its doors for business as scheduled. Due to the economic crisis of 2008, the hotel has never had full capacity, which is what it requires to make a profit and fully repay the loan.
This is why they are having to repay the $20 million to Casino at a much slower rate than expected. Their lawyer, Chris Paladino, announced that certainly, they will repay the loan, it will just take longer.
In the past 10 years, Devco has already paid $30 million in bonds back and made payments up until last year. On previous renewal projects, they have repaid over $1.5 billion. They have put great effort into the renewing of New Brunswick and has been very successful in transforming empty street blocks into gorgeous hotels, shops and convention centers. For more details visit the Press of Atlantic City website.