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THURSDAY, AUGUST 13, 2009   
Vol 2.33   
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The Nevele Grande Resort still owes over $700,000 to the county, town, village, and school district.   Photo by Brian Rubin
A Few Grand From The Nevele Grande
Auerbach Finds $61k Ulster Owes Wawarsing

ELLENVILLE – For a resort that's closed, there seems to be a new story about the Nevele Grande every week. On Monday, Elliott Auerbach sent out a press release regarding tax funds from 2007 that the county collected from the resort in 2008 via the Ulster County Industrial Development Agency's Payment In Lieu of Taxes, or PILOT, agreement. The portion owed to the Town of Wawarsing, however, was never forwarded from Ulster County's coffers.

"The county had collected it piecemeal — $10,000 here, $20,000 there," said Auerbach. "It wasn't one lump sum check that was paid to the county. We started an audit to really look at the Payment in Lieu of Tax program, and we specifically zeroed in on the Nevele because we recognized the fact that they owe the county Payment in Lieu of Taxes for both 2008 and 2009…. I made a phone call to Pat Althouse, who is the comptroller for the Town of Wawarsing, and I discussed the [as yet uncollected] 2008 and 2009 payments with her, only to discover when she told me that the town was never paid for 2007. It was in fact collected by the county but never forwarded." According to Auerbach, the county treasurer's office collected $104,554.98 in taxes through the PILOT program, $61,486.90 still owed to Wawarsing. Of that, $24,341.88 and $37,145.02 will be allocated to Wawarsing's general fund and highway fund, respectively.

"I can tell you that, when I spoke to him today, Supervisor Jennings, and [Comptroller Althouse], although I didn't see their faces, I could sense that they were smiling when they found out there was a collective $60,000-plus coming to the town," said Auerbach.

Indeed, Supervisor Jennings was optimistic about the funding making its way to the town's bank account.

"I'm very glad that we're going to get extra money," said Jennings. "It's not a lot of money. Hopefully, we're going to get the rest of [the owed taxes]. But I'm glad we're getting it, and I'm sure we'll find a good use for it."

Despite the good news of the already-collected funds, the resort still owes tax money from 2008 and 2009 — money that Auerbach said the county will seek to ensure is collected when and if the Nevele is sold by Auction America Realty, the firm retained two weeks ago to match the property up with a buyer.

"I met with the county attorney on Thursday and advised her that she needs to commence whatever legal proceedings that she can possibly do in order to place the county, and the Town of Wawarsing, and the Village of Ellenville, and the Ellenville Central School District, in between the sale, so to speak, so that we are ensured — all of those bodies are ensured — that they will receive payment prior to the property changing hands," said Auerbach.

On Wednesday, Auerbach's office sent out a press release offering hard numbers on how much the Nevele still owes for 2008 and 2009: the county and Town of Wawarsing are owed $238,932.00 in PILOT payments and interest and penalty fees. The county is further owed $50,000 in hotel/occupancy taxes, and the Village of Ellenville is owed upwards of $155,480.36 in water rents. The press release also states that the Ellenville Central School District reported to his office a figure of $255,695.74 owed by the Nevele, with an additional $9,402.97 reportedly owed to the Ellenville Public Library. The total owed by the Nevele — not counting, of course, the money still owed to the many employees still waiting for their paychecks — is $709,511.06.

"Any purchaser needs to be made aware that that indebtedness needs to be satisfied in order for the title to clear," said Auerbach.

Marvin Neuman, owner of Auction America Realty, said on Monday that the intention behind owner Joel Hoffman's selling of the Nevele property is to ensure that the debts it has accrued are paid off in full.

"We are in a very bad economic time," said Neuman. "If he [Hoffman] would've had the assets and the cash, he would've paid everything already, for everyone. All of his old employees told me that man never hurt them; he was always generous. That's the word they used. The reason we are doing a quick sale is because it is his desire to pay all of those debts. He doesn't want it on his head."

Meanwhile, Neuman also reported that he's been fielding 200 phone calls a day since the announcement of his company's efforts to auction off the resort. He says it's possible that the resort may be matched with a buyer prior to the planned September 1 auction date, and that the Ulster County IDA is working with him to develop incentives for a potential purchaser of the property.

"They are offering tremendous incentives to the purchasers to help promote the area," said Neuman. "Ulster County, the development corporation, and the people that I have met are so top flight….they're whole goal is to bring the Catskills back into its proper place."

Lance Matteson, CEO of the county's IDA, said that reopening the Nevele is a priority, though any details about incentive programs were as of yet too scant to discuss on Monday.

"I think it's premature, really, to go too far down that road because whether we can bring incentives to the table and what incentives depend a lot on the deal, and what the buyer's bringing to the table," said Matteson. We want to make sure that whoever buys the Nevele has a good plan for the community and for the economy of the area. And we're hopeful that whoever buys it will want to develop it and make it prosper, which would be great for the community, both Ellenville and the larger Ulster County economy."



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