In the late 1970s Richard B. Sellars who was the former executive for Johnson and Johnson Company set out to be the founder of New Brunswick Development Corporation. New Brunswick Development Corporation is a non-profit making corporation and is best known for urban real estate development. This company is located in New Brunswick, New Jersey area.
Hyatt Regency Hotel renovation that cost around six million dollars was the first major activity that was conducted by DEVCO. Since it was founded politicians and people in government were associated with it. These politicians include Mayor James Cahill, former mayor former mayor and senator John Lynch.
Devco has been criticized for the many accumulated accounts payables on both the municipal and the county governments as they attempt to support its initiatives and projects. For example in 2005 Middlesex County Improvement Authority had to borrow a loan from Casino Reinvestment Development Authority as it tried to support Devco in construction of Hedrich, a New Brunswick hotel and conference area consisting of two hundred and thirty five rooms.
To build this hotel a cost of one hundred and seven million US dollars was incurred of which twenty million came from CRDA and seventy million dollars came from municipal bonds that were issued by the Middlesex County Improvement Authority.
It is expected that these bonds will be paid using revenue earned from the hotel but unluckily the hotel preforms terribly bad. Up to know only the senior bond holders have been paid to an amount of 30 million Dollars leaving subordinate bond holders unpaid for many years.
Christopher Paladino who is the attorney of the Corporation and who organized for the 20million dollars loan has promised CRDA that it will be paid in a couple of years. This article was written on Press of Atlantic City.