In the mid-1970s a development company was created to initiate the redevelopment of public and private buildings in the city of New Brunswick. Devco, a company known for its economic revitalization, has handled more than one billion in investments.
Devco was founded by Richard Sellars, a former executive of Johnson&Johnson. The organization’s mission centered around new developments and assisting local establishments like Rutgers University.
Last month was a day of concern, the Press of Atlantic City wrote an article explaining how the Middlesex County Improvement failed to pay the million dollar principal on a loan it received from Casino Reinvestment Development Authority.
The loan was originally made in the year of 2005 and in 2007 it was used to fund the construction of The Heldrich Hotel. The Heldrich is a hotel and conference center located in the New Brunswick area. Devco, also known as the New Brunswick Development Corporation, assisted with the construction and revitalization of the hotel.
After many years of struggle, the hotel finally hit a small economic boost. The 235-room building gained an occupancy of 63.5 percent and gained one of it largest accounts Johnson&Johnson.
The hotel is still struggling with cash, and in some cases have to use its own money to fund capital expenses. Chris Paladino, the attorney handling the arrangement of the loan, stated that CRDA will be paid back, but it’s going to take a few more years before they can successfully pay off their debt.