The Middlesex Regional Improvement Authority, this previous month, has failed to pay their loan in interest and principal which according to the Press of Atlantic City was $20 million loan that they received from the Casino Reinvestment Expansion Authority.
The expansion Authority, for five years, has been in arrears. It has racked more than $7 million in payments skipped. The 2005-made loan, funded the Heldrich construction, the New Brunswick Conference Center and Hotel that was developed by the non-profit organization by the name New Brunswick Expansion Corporation.
Devco has been touted by the president of the Senate, Stephen Sweeney, as a paragon of what is the result of mismanagement of public funds channeling them to private firms to have them execute large-scale construction. The new outfit of Brunswick is also the very model of the Atlantic City Expansion Corporation, a sister company that is in expectancy of overseeing over $200 million in private and public funding – including new CRDA money worth $19.5 million- for the development of the city’s Chelsea section Gateway Project.
The attorney Christopher Paladino chairs both companies. He is the one that arranged the $20 million Heldrich loan. “CRDA will get its payment in due course, but it will take more years than the estimated time,” he said this previous week.
The 235-room Heldrich building, which started its operations in 2007 on the eve of the global economic crisis, has been a struggle to attract more and more customers. This past year, it had its tenancy rate at 63.5 percent, and its largest occupant account came from Johnson & Johnson, whose executives are sitting on the New Brunswick Expansion Corporation as their board of directors.
The hotel is cash-strapped that the company has thought of tapping necessary funds for necessary expenses like carpet replacement and mattress replacement amounting to $776,000.