The Middlesex County Improvement Authority is raising eyebrows after it failed to pay off debt owed to the Casino Reinvestment Development Authority. In a report by pressofatlanticcity.com, the loan was given to the MCIA to help finance the reconstruction of a New Brunswick hotel in 2005, but after many years it does appear payments to the Casino Reinvestment Development Authority on the $20 million dollar loan remain undelivered. The failure to pay off the loan comes as shock to many who saw the company as a great example of how companies can renovate and revitalize the New Brunswick city’s economy and tourism.
Heldrich, the hotel who’s construction the loan was intended to finance, was built by the nonprofit organization New Brunswick Development Corp, Devco to help attract more tourism to the city. Lack of funds has made this project difficult for the developers to finish the project. Last year the Heldrich’s occupancy rate was a mere 66%. The desperation for cash has become so severe that Johnson’s and Johnson’s, who’s executives sit on the board of director’s for the hotel, had to pitch in their own funding to make basic repairs such as carpets and mattresses. With pressure to complete the renovation mounting questions about exactly what happened to the loan are being raised.