The Unpaid CRDA $20 million raises queries about New Brunswick Devco

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.