The Middlesex County (New Jersey) Improvement (MCIA) recently missed a $1 million payment on a $20 million loan provided by the New Jersey Casino Reinvestment Development Authority. The MCIA took out the loan on behalf of Devco, the New Brunswick Development Company, to fund a revitalization project in an economically depressed area in Middlesex County. The project involved the development of a hotel and convention center called the Heldrich, which opened in 2007. The loan was part of a larger financing package that Devco put together from various funding sources.
Despite the positive effects of the Heldrich on the community, such as over 200 union jobs, more than a million dollars in real estate taxes, and the economic boost gained from over 100,000 visitors per year, the MCIA has been in arrears on its payments for years. CRDA is a subordinate lender, meaning it has a lower repayment priority than other creditors. However, Devco has said that with the healthier economic climate, the loan will be repaid within a few years.
The New Brunswick Development Company, better known as Devco, is a non-profit organization committed to urban revitalization and economic development in Middlesex County. The company has secured $1.6 million in funding for various projects through innovative public-private funding solutions. Devco is especially well-known for its mixed use developments. Read full report on pressofatlanticcity.com.