Once again, the Middlesex Improvement Authorities have missed the $1 million in principal and interest on a $20 million loan that they helped the New Brunswick Development Corporation secure as part of a $107 million loan package. This is the fifth year in the row that Middlesex Improvement Authorities have failed to make the loan payment. The loan also included $70 million in municipal bonds.
New Brunswick Development Corporation used the money to build the Heldrich hotel and convention center. They point out that while the loan has not been repaid, the facility has added greatly to the economy of the area with 100,000 people visiting it in 2015. Furthermore, they point out that they paid over $1.2 million in real estate taxes and that they employee 235 unionized workers.
The New Brunswick Development Corporation has moved on to other projects. Most recently, the organization which brands itself as Devco, has been working on improving the Rutgers University campus and area. They have helped to construct a new dormitory that is supposed to pay for the funds that they obtained to do this project. They have also made improvements to College Avenue and have over seven tenants lined up to move into businesses along the street. Furthermore, they have built a new academic hall containing the latest technology in five large lecture rooms.
Officials with DEVCO say that they think the loan will be paid back in time. They point out that before Middlesex County Improvement Authority made the loan, they knew that they were a subordinate lender. The Heldrich has paid over $30 million to senior bond holders. They hope that as economic conditions improve that loan payments will be made soon, according to the article in the Press of Atlantic City.