The Heldrich Hotel, a formerly old and rundown hotel was developed by DEVCO, New Brunswick Development Corporation, the nonprofit real estate investment cooperation that acted to secure a loan to bankroll the project. The renovations were done by the Middlesex County Improvement Authority which received $20 million dollars from the Casino Reinvestment Development Authority. The Improvement Authority was scheduled to start payment on the loan in January but was unable to do so due to the failure of the project to perform at expected standards.
According to an article by the Press of Atlantic City, Christopher Paladino, head of the Improvement Authority states that the Casino Authority will be repaid, but that it is taking longer than expected. One reason for this, a spokeswoman for the Improvement Authority notes, is that the writing of the loan contract states that payments are to be made from available project revenue. Since the hotel has not performed at par, loan repayments have not been issued. She states that they are optimistic that the project will soon produce more, in-line with the current economic upswing. The Atlantic City Development Cooperation, sister-firm to its New Brunswick counterpart, and headed by the same man is still expected to go ahead with $200 million of public and private financing to develop the Gateway project. $19.5 million of this money is expected to come from the Casino Reinvestment Development Authority, who stated that they made the Heldrich loan knowing that they would be some of the last to be paid back.
The company’s purpose then and now was to find and develop areas of the city that would help to improve the overall look, feel, and profitability of the area. Devco has overseen almost $1.6 billion dollars in projects since it was first commissioned in the mid-1970s and strives to capitalize on momentum and always have several projects going at the same time.