A payment on a $20 million loan given by the Casino Reinvestment Development Authority to the Middlesex County Improvement Authority to build the Heldrich, the new News Brunswick hotel and conference center developed by the New Brunswick Development Corporation(Devco), has not been made. There is no plan in place for these payments to be caught up.
Officials with the New Brunswick Development Corporation continue to blame low occupancy rates, according to an article originally published in The Press of Atlantic City. They say that they have been able to pay the primary loan providers on schedule and give them about five percent in interest.
DEVCO has now achieved additional funding for other construction projects including the one that they are currently constructing at Rutgers University. Loans for this project will be paid for from student dorm room fees. Honor students will live in the dorm along with professors and academic deans. This project also involved the redevelopment of College Avenue. So far, DEVCO has signed seven tenants for this project including Starbucks Coffee, Honeygrow, Bella’s Burger Shack, RU Hungry, House of Cupcakes, Jersey Mike’s Subs and Krispy Pizza.
Ground has also been broken on the Stockton College campus in Atlantic City. By fall 2017, it is hoped that this project will be completed. Once done, the campus should allow 1,700 students and faculty to attend school and work here.
DEVCO continues to hunt additional funds for other projects. They are most interested in developing public-private partnerships to build mixed used projects. Some question the legality of DEVCO getting public funding because of the bill signed into law by Governor Christy that says state agencies cannot give loans to groups that have defaulted on state-issued loans and bonds.