The History and Present Projects of DEVCO
During January of 2016 in a report by Press of Atlantic City, the Improvement Authority of Middlesex County had failed in paying one million dollars in interest and principle to a 20 million dollar loan that was received from the Casino’s Reinvestment Development Authority. This was not the first time that the Improvement Authority had missed a payment, as they were already five years behind on payments, which were racking up to almost 7 million dollars in missed payments. The loan, which was made during 2005, was bankrolled construction for the Heldrich, and a New Brunswick conference center and hotel, which was being developed by a non-profit organization that was called the New Brunswick Development
Corporation. The corporation has been shown as a paragon of what has the possibility of being done when the public dollars have been funneled within private firms with the goal to execute large scale construction. Atlantic City Development Corporation is a sister firm to the New Brunswick Outfit, which expects to oversee over 200 million dollars in private and public financing, which includes 19.5 million dollars in new CRDA money, which was used in developing the gateway projects within the city’s Chelsea section. The Heldrich, and it’s 235 rooms, had opened in 2007, right at the beginning of the economic downturn, which caused it to struggle in gaining guest. The hotel is so strapped for cash that the corporation has had to tap into it’s own money for nearly $776,000 of it’s own for basic expenses. While all this is going on, the Atlantic County Improvement Authority has been preparing for issuing 120 million dollars in
bonds this past May for the gateway project.
Devco has been nationally recognized model for redevelopment, which is one that is based on a sound public policy. It is a private non-profit urban real estate development company that was founded in the mid 1970’s that served as ta catalyst to the city’s revitalization. The experts within DEVCO have created strategic alliances, innovative project finances, and strong public-private partnerships. Since it is inception, DEVCO has been responsible for overseeing close to 1.6 billion dollars for the investment in New Brunswick. It is shown that a successful redevelopment
requires that the focus be capitalizing on momentum, and DEVCO is always focused on opening one project, then breaking ground for another, and financing a third, and then envisioning projects in the future.