Atlantic City Gambles with Hotel Development

 

Atlantic City has become a mecca for conferences and gamblers who wanted something closer to the New York City Area for their gaming pleasures. The economic collapse of the American economy which began in 2007 had a severe impact on those things Americans did for fun. In Atlantic City the Heldrich Hotel and Conference Center was initially developed by a group calling themselves the New Brunswick Development Corporation, the corporation was originated as a non-profit and received funding for the development beginning in 2007. The times could not have been worse for development as the economy was entering the first stage of the slowdown that made for the worse economic recession since the 1920s.

While some of the loans for this development have been paid, others are not and holders of the loans have been assured that the outstanding loans will be repaid.

But the facts are that the Middlesex County Improvement Authority failed to meet a payment obligation last month, and they remain in arrears and have been for five years, accumulating $7 million in missed payments.

An attorney for the project pledged that the moneys would be repaid and hailed the project as an employment opportunity for 235 union workers. He added that the development site was in a very bad neighborhood and the presence of the hotel beautifies the once blighted area.

In December, Gov. Chris Christie signed into law a bill stopping state agencies from giving loans, grants and subsidies to businesses, including nonprofits, that have ever defaulted on repayment to any state-issued loans or bonds

The Heldrich does pay $1.2 million in real estate taxes annually as well as employing the 235 hotel and grounds workers