Founded in the 1970s by then CEO of Johnson and Johnson Richard B. Sellars, New Brunswick Development Company (Devco) is a private development company with tax-exempt status. Operating as a non-profit real estate redevelopment company, Devco has been a significant part of the New Jersey area since the mid-1970s and has continued to improve the quality of life through their design and contraction of multi-use properties.
Devco has redeveloped many well-noted projects that range from student housing for Rutgers University to government buildings for the state of New Jersey. From the time world-renowned architect I.M. Pei designed their first building to current projects, Devco has been a major player in the New Jersey real estate market.
In an article published in the Press of Atlantic City (http://www.pressofatlanticcity.com/news/breaking/unpaid-million-crda-loan-raises-questions-about-new-brunswick-devco/article_a03318e2-dcdb-11e5-a563-67611bc7b7bc.html), non-profit redevelopment corporations, who are funded with public and private money, are having a tough time repaying loans. The property at the center of the issue is the Heldrich hotel, which was developed by Devco. The Casino Reinvestment Development Authority made the loan to Middlesex County Improvement Authority in 2005 to jump-start the hotel’s development construction. The $20 million loan was supposed to be paid back using revenue from Heldrich, but due in-large part to the 2007 economic downtown, the hotel struggled to attract guests. Fast-forward to 2016 and the hotel continues to have a hard time recovering from the recession. At the core of the issue is whether state finances should be used as loans fund uncertain redevelopment projects in New Brunswick.