.

Audit: Allegria Hotel Owes $132K in Back Taxes

Nassau County Comptroller Report Says hotel in Long Beach has failed to pay county's Hotel and Motel Tax.


The Allegria Hotel in Long Beach is one of just two hotels in Nassau County that has failed to pay the county’s Hotel and Motel Tax, according to an audit report released Tuesday.

County Comptroller George Maragos indicated in his report that the Allegria, at 80 W. Broadway, owes the county $132,000 in uncollected taxes since first opening in 2010.

The other hotel cited in the county comptroller’s report was the Jones Beach Hotel in Wantagh, which did not register and file hotel and motel occupancy from November 1994 to July 9, 2011, and in that nearly 17-year period owed $610,400 in fines, Maragos said.

Maragos said all of the other county hotels in the county, more than 50, have complied with the tax, which is allocated to promote tourism and conventions as well as to assist in the operation of non-profit museums and cultural organizations.

Following the audit, the Nassau County's treasurer office referred the unpaid hotel and motel occupancy taxes by the Allegria and Jones Beach Hotel to the county’s collection agency, Maragos said.

“We are pleased that the treasurer has acted promptly to collect unpaid hotel and motel taxes and to put procedures in place for better oversight of delinquent taxpayers,” said Maragos, who was elected Nassau County comptroller in 2009 and is currently running in a senate race to be the Republican challenger to U.S. Sen. Kirsten Gillibrand, D-NY.  

According to the audit, the Allegria failed to pay any hotel and motel occupancy tax, totaling $112,019 for the four quarters of 2010. In addition, the hotel did not pay occupancy taxes of $743.31 in 2009 and $173.89 in 2010, and $947 and $18,629 in penalties and interest for 2009 and 2010, respectively, are still outstanding.

The report reads: “According to their external accountant, management was experiencing cash flow problems, and asked if this outstanding amount could be paid in installments. A recent follow-up of the hotel’s payment status with the County Treasurer’s Office indicated that in 2011, the hotel is submitting quarterly Hotel and Motel Tax Remittance Forms, but continuing to fail to pay the taxes.”

Allegria general manage Mike Witte told Patch: “We are working to fulfill all of our commitments to the city, past and present. We are open for business and now we are looking forward to the most successful summer that the Allegria has had."

The Allegria reportedly, and, as Patch reported in January, the Brooklyn Federal Savings Bank fielded at least two offers of about $20 million each for the $36 million note it holds on the hotel.

* Andrew Coen contributed to this story. This story was updated at 11:32 p.m. on 5/9/12.

The real bear May 10, 2012 at 03:08 PM
JT last I checked they do not owe you or anyone an explanation. They are a private enterprise. What that means is even though they owe taxes they are not obligated to provide anyone a look at their books or employment practices.
The real bear May 10, 2012 at 03:41 PM
Good day to you sir
Bill Callahan May 10, 2012 at 06:29 PM
Hopefully they dont shut it down or make it a welfare hotel or a nursing home for the sake of votes in the next election. then all you people will beg for it to be a hotel again. lets watch and see what happens next. hopefully they have a good summer make some money be able to pay their taxes and bring people in from out of town to spend money at our local stores. or it can turn into a crack house like we use to have on the boardwalk and no one will be able to go past there. City by the sea all over again. try to get tax money from a crack house. if there are any long time long beach people on this page tell all the blowins how it was on the boardwalk years ago so they can understand. crackheads and perverts, yeah thats what i want on the hotel site. try to sell your over priced over taxed house then. be careful for what you wish for. enough said
John Corey May 10, 2012 at 06:58 PM
Mike give me a break... Under your management skills most of the hotels top producers have left. Their checks were bouncing like rubber balls. The hotel won't make it until it is sold and they clean house, starting with you Witte
jt May 10, 2012 at 07:08 PM
bear... i never asked for an explanation, a look at their books or about their practices. i would like them to pay the city and the county the hundreds of thousands of dollars they owe them, just like i have to pay my taxes. i would like them to pay their employees without having their checks bounce. i would like them to not charge 12$ for a heineken. and stop thinking they are in south beach. its long beach, a very casual beachy town that does not want or need a pretentious hotel that only hurts the citys reputation.
Skye Diamond May 10, 2012 at 08:45 PM
As a former emplyoee of the Allegria Hotel, it is discusting to see what is going on here. Mr Rosenberg had a dream to build a beautiful beachfront hotel, and could have gone anywhere with his millions and millions of dollars. He chose Long Beach .. He created a paradise, that other towns could only dream of... Are the taxes being paid? yes, they are working on it, however..... the residents of long beach may want to say THANK YOU....Thank you for believing in a beach front community, how about, SORRY your not doing well....lets rally and support you...like you support everyone else. Did you know Mr Rosenberg donates rooms to the Waterfront Warrioirs, and their families 2 x a year? Did you know he opens up the hotel at Christmas and HOSTS ( which some of you stupid people dont realize means FREE) the entire city of Long Beach.... He has a tree decorate, Santa Claus comes...Children of all ages and families are welcome for free hot coco and cookies. I could go on and on... So while most of you are at the bar at Jimmy Hayes ( paying out the ass for your dinner with a view of a gas station) telling me the Allegria is too expensive, you need to show some compasion and note that we need that hotel..and shoulod embrace it... Not to mention you shoud be ashamed to behave so poorly on a public site
Skye Diamond May 10, 2012 at 09:48 PM
BTW.. Im very busy at WORK..so I'm typing quickly.. Im not sitting on the COUCH with my spell check in hand.. Get a Life Ed..how'd i do?
Gary May 10, 2012 at 10:27 PM
I have never been to the Allegria... but I would hate for it to fail... it is a great addition to our town. Why can't you give it a chance?
Bill Carls May 11, 2012 at 12:47 AM
Hosting events and giving away free services is so very lovely but completely irresponsible when you owe the city that should be SOOOO appreciative of it over $100k. Besides that, the waitstaff/service has less personality than a broken plank on the boardwalk and the run of the mill food and drinks are way overpriced. If I wanted to pay double the price for a drink, I'd go to a worthwhile restaurant/lounge/bar in Manhattan. If anyone in LB wants good food, a normal priced drink and real people, we have many other superior choices. So, no, we have nothing to thank you for and in no way should be ashamed for voicing our opinions.
Lloyd May 11, 2012 at 09:38 AM
Whats with all the Allegria bashing? Despite not paying all its vendors, contractors, and tax bills we find it to be a very convenient place to stop in and take a pee. The bathrooms there are a bit lovelier than the dumpaterias on the beach or boardwalk. Its a nice place to walk around, explore, take in the views from the top floor party room and even have a drink. Yeah. They are overpriced, but where arent they? At Pops? The Stone Turtle? At Grillfire? You can go to Waldbaums and get a twelve pack of Natural Light cans for around $7.99, drink them at home or out of a paper bag on the beach, then go to the Allegria and order a Diet Coke at the bar for around $2.50. They have free fresh Water fountains next to the bathrooms downstairs. Take advantage of all their amenities while they are still open for business. Otherwise it will turn into a private assisted living facility and the bathrooms will be restricted to residents only.
JP Ashcroft May 11, 2012 at 01:30 PM
this is what we get for giving everything to this hotel to "survive" Remember the city council, we must have this hotel survive.....Nice going Charlie
karen May 11, 2012 at 02:08 PM
I live next door to the allegria and I love it. I have stayed in the hotel and have eaten there many times. I think if the allegria would lower their room right to encourage local people too frequent their hotel they could generate more income. The comment I most ofteb hear from my friends is "oh they're so expensive." Take a dollar or 2 off your drink prices and encourage locals to come to you
Lloyd May 11, 2012 at 04:02 PM
They could offer coupons and advertise specials like most competitive Long Beach businesses do. Or do they have too much 'class" to advertise for more business? How about offering a $25 discount certificate on restaurant.com?
Love This City May 11, 2012 at 06:04 PM
When you own a business choices are made every day and unfortunately Taxes are usually the first bill that is not paid when you are going through revenue/expense difficulty. I think most people forget how much money the people who stay at the Allegria spend in Long Beach and how many people are actually employees of the hotel. They have banquets, events and affairs that increase the employee size substantially on those nights. I admit I had a few dinners at The Allegria and spent a couple New Year's Eves there and the food was awful. It is a business Mr. Rosenberg invested in and it obviously is not going as well as He or anyone else would like. The hotel had perfect timing for the worst economic downturns in our lifetimes, yet they chose to forge forward and attempt to make it work, we all know the rest of the story. Also, remember when The City of Long Beach cancelled the single largest event in City History last year? The Allegria invested a lot of money in to be the center of it and then The City cowardly cancelled it, they and everyone else who invested in the Contest were out of their investment and minimal if any return. Pretty sure that 1 event could have covered most of the taxes owed. If you do not like the food do not eat there. Don't like the beds, don't sleep there. But do not bash people who invest their hard earned millions into Long beach, because if they don't who will? Then ALL of the people bashing them will have no one to bash anymore.
paul.d.spellman May 11, 2012 at 06:48 PM
LTC, Quite the contrary to bashing "people who invest their hard earned millions into Long beach", most of the posters hear are bashing people who do not pay their taxes.
Lloyd May 12, 2012 at 02:51 AM
And if Rosenberg is smart enough to amass a small fortune for himself through business ventures, whjy cant he find some quality chefs and experienced managers for his hotel? Plenty of businesses have prospered during these tough economic times, but overcharging for food, drinks, and rooms and alienating local contractors and vendors is not the way to do business in a middle class residential community. I'm not giving them a pass. They screwed up since Day 1.
Mike Witte May 12, 2012 at 10:52 PM
Hi everyone Its been a day or so since I have been here but this all makes for interesting reading. I've been quite busy overseeing a multitude of corporate, catering and social events as well as sold out nights. Love the discussion...just wish everyone could accentuate the positive and be "forward thinkers" rather than dwell on the past. This hotel is not going anywhere and again...my door is always open. Happy Mothers day to all! Hospitably, Mike Witte General Manager Allegria Hotel PS - the bathrooms are for the patrons of the hotel. Thanks Lloyd and thanks for the photo.
Eddie May 12, 2012 at 11:44 PM
All this nice talk isn't helping me. The Allegrea is freeloading on my tax bill. My taxes are being raised to provide services that they are illegally not paying for. I'm picking up the slack, along with the rest of the residential taxpayers. So either pay your tax bill or move aside, and let someone in that property who will pay their fair share. You are a financial burden on very taxpayer in this city.
Lloyd May 14, 2012 at 02:38 AM
Why did Mike Witte mention my name? Im not wishing any bad luck or failure for The Allegria Hotel. Its never done bad stuff to me. Just pay what you owe and let us use your bathroom once in a while. We'll go in there fully dressed.
CSC May 14, 2012 at 03:52 AM
Ed, Eddie, John & the REST of the Bashers. THINK, REMEMBER what the Hotel looked like before. It was a dumping ground for druggies, boozers & just a horrible mess. Look around & tell me what you see now! Broadway has never looked better! The Hotel, Apt buildings & the street look beautiful. As a long time Long Beach resident I Love what is happing in LB. We should support EVERY business in LONG BEACH! We should wish them the best & stand behind them. They are part of what makes this City a Beautiful City by the SEA. NOT a Dump like other seaside communities near by. You ALL sound like OLD closed minded suck in the PAST NO class ignorant people. Mr. Witte, I wish you & the Allegria Hotel All the success & Thank you for being part of Our Community we Love so much.
Lloyd May 14, 2012 at 01:45 PM
Supposedly The Allegria has been losing money since it opened. Is that a fact or just an excuse why they fell behind on their tax obligations? Something smells fishy here because if any of us regular people owed that kind of tax payments for so long, our properties would have been sold at auction at County Court in Mineola. Im sure there are plenty of local investors/ realtors out there willing to bid on that property at a price that just pays off their tax leins.
paul.d.spellman May 14, 2012 at 02:06 PM
CSC, --How much revenue has your company received from this tax delinquent establishment? --How much from events held in this tax delinquent establishment? --Is this revenue biasing your viewpoint?
Tideline May 14, 2012 at 02:35 PM
Lloyd, no one is buying that Hotel on the Court House steps for the "price that just pays off their tax Lien", from what I heard the NYC Developer who bought the Lien is earning a high rate of interest, incurring Attorney fees, entitled to interest on those Attorney fees as well as reasonable costs of collection and interest on those expenses as well. You can see, the value of a Lien can quickly sky rocket. So how could someone buy the Hotel and not satisfy all the above additional expenses I just listed? Answer, they can't. As for the loca investors and Realtors, who would buy the Hotel on the Court house steps, if they are so interested and have the money, then how come they did not buy the Lien in the first place ? Another reason the Hotel will not be bought at auction for the Price of the RE Tax lien is, are you forgettting about the Bank ? Although, they are no longer first Lien holder, I am sure they will still want their millions back and are not about to walk away from their investment and would not allow someone to buy the Hotel at Auction for the Value of the Tax Lien.
Tideline May 14, 2012 at 02:37 PM
Since the Hotel allegedly missed their last RE Tax payment since the Lien was bought, the question needs to be asked how could some Company catch up on the past debts, if they are not paying their current debts? Answer, they can't. Based on past performance, looks like the Hotel will not be making their next RE Tax payment this summer either. I would expect the same Tax Lien holder to go back next year and buy the next Lien. Lloyd, am I making any sense here ?
Mike Witte May 14, 2012 at 02:50 PM
Dear CSC Thank you and many thanks to all of the positive, forward thinking people who have responded to this article and subsequent postings. You - and even the not so positive posters - are welcome to patronize the establishment anytime. Our summer events schedule and new website will be launching before Memorial Day Weekend. FYI - Dine in the restaurant before 7pm and enjoy our sunset special which includes soup or salad and desert with the price of an entree. I look forward to meeting any and all friends of the Allegria. Hospitably, Mike Witte General Manager Allegria Hotel
Lloyd May 14, 2012 at 03:01 PM
Yes, but it seems like revolving door economics. The question remains...when, if ever, can the lien holder pay off all the tax liens and keep his payments current and not fall behind? I still think that one day soon, Engel-Burman, the builders of all The Bristal properties, will buy up the hotel and turn it into another Assisted Living facility. I believe they already bought the vacant lot next door to The Allegria. At $4000-$6000 per month per room, guaranteed, the Bristals are all making big money, recession or no recession. And they dont miss their tax payments.
paul.d.spellman May 14, 2012 at 03:45 PM
Mr Witte, You mentioned that your establishment supports local businesses. Would care to name the company that provides the floral arrangements for the place? I have heard you use a company on the north shore at the expense of closer locally owned establishments.
Bill Callahan May 14, 2012 at 04:01 PM
csc the bashers wont be happy until the alegria turns into what was the viceroy apartments full of crackheads and creeps walking on the boardwalk. those who forget the past are doomed to repete it. although i do wish they would lower the prices. i bought a glass of house wine and a diet coke $17.00 thats out of hand. never again
Chaz May 15, 2012 at 12:51 AM
Hi all. I find the comments amusing....The best part of this is the City of Long Beach owes the hotel 250,000 for a Christmas Party bill , a retirement party, and a firefighter party that they never paid.... Think Im lying...go ahead and ask City Hall
Bill Carls May 17, 2012 at 12:15 PM
Wow. That's a hefty price tag for a few parties. How many $12 dollar beers and $25 microwavable dinners did the Allegria serve? Better off having functions like that at the KofC or Minnesotas.

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