The hotel is developed by the New Brunswick Development Corporation, which is also trying to pay debt accumulated by the public firm, Middlesex Improvement Authority, the financier of several such public projects in the country. According to officials, the Middlesex Improvement Authority still needs to pay a whopping $7 million in missed payments. As such, the total loan on the original investment is $20 million, which is paid annually in increments of $1 million.
Interestingly, it should also be noticed that Heldrich Hotel and Conference Center failed to attract anticipated visitors due to the economic downturn of 2007 and 2008. When opened in 2007, the low occupancy rate continued to pose challenges. As of now, the occupancy rate has increased, but the hotel still need to generate hefty revenues to pay off the bills. Still, spokeswomen for the Middlesex Improvement Authority, Maria Prato, is highly optimistic that the hotel will generate substantial revenues as the U.S. economy continues to recover from the 2008 recession. Similarly, Chris Paladino, who arranged the loan for the hotel, agrees that the hotel project is proving its worth by employing 235 workers, contributing tax and improving revenues.
Devco, New Brunswick Development Authority, is a non-profit organization working on several community redevelopment projects. These projects are financed by public-private partnerships. Since its inception, the organization oversaw $1.6 billion in investment, in New Brunswick.
P.S. The original article was published in the Press of Atlantic City.