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Ulster County sues Nevele for outstanding taxes, payments in lieu of taxes

KINGSTON – Ulster County his filed a lawsuit against the owners of the Nevele Hotel in an effort to collect all payments in lieu of taxes and unpaid taxes owed the county.

According to the complaint filed in State Supreme Court on Friday, the county is owed $290,959, plus penalties, interest and attorneys’ fees.

The Ulster County Industrial Development agency was also named in the suit by the county, but the IDA was included for procedural purposes and the county is not seeking any money or remedies from it.

In 2008, the hotel, which ended its tax exempt status, agreed to pay existing county, town and highway taxes in three installments.

The complaint said the Nevele paid the first payment, but not the second or third totaling $74,290.

The 2009 county, town, high and special district taxes totaling $161,388 are also unpaid, according to the suit as is $55,280 in county motel tax.

County Executive Michael Hein said he looks forward to working with the new owner, but the hotel has an obligation to the taxpayers of the county.

An auction company will be accepting bids for the hotel on Tuesday.