Today we published a story detailing some of the pressure tactics and legal challenges facing the Nevele Grande and the alleged deal for a Brooklyn investor to buy it. (Click here to read that story.)
Here’s the bottom line: Before anyone can think about buying the Nevele, a judge has to rule on the suit between current owner Joel Hoffman and his former partner Mitchell Wolff. Hoffman owes Wolff more than $2 million from a civil suit in New Jersey.
As part of that suit, Wolff is asking the judge to grant him ownership of the Nevele. The judge is expected to rule by the end of February.
Hoffman has never returned the Times Herald Record’s myriad phone calls to his Long Island office, but it’s safe to say that debt (HUGE DEBT!) is one of the primary reasons Hoffman is putting up a fight. Here’s why:

The Nevele Hotel, once a jewel of the resort scene here, is now tangled in lawsuits and mounting debt.
The Nevele is currently swimming in more than $5 million of debt to roughly two dozen creditors. Many would think that Hoffman could rid himself of that debt by selling or relinquishing the property.
But that’s NOT true.
Some of the Nevele’s debt is attached to Hoffman, not the hotel property. For instance, Hoffman has been fined $1,051,683 by the state Labor Department for not paying employees, paying them less than minimum wage or not doling out their tips. Labor Department spokeswoman Karen Williamson said that debt will belong to Hoffman even if he gets rid of the property.
In court papers, Hoffman has said he wants to sell the hotel for about $16 million, just enough to satisfy his mortgage and debts. Wolff has suggested he’d sell the hotel for less, which means Hoffman would be saddled with some of the debt.
These are some of the sticks issues that the Nevele has to get through before anyone–including Brooklyn investor Rafi Weiss and his partners–can talk about buying and renovating the hotel.
So where does this debt come from? Here’s a list compiled by the Times Herald-Record. It’s all public info, found int he Ulster County Clerk’s Office. The debts are listed in no particular order:
Village of Ellenville for unpaid taxes and water fees: $196,323.17
Settlement from a tip-and-fall accident at the hotel: $14,023.24
State Labor Department for wage and labor violations: $1,051,683.51
State unemployment insurance: $10,331.93
Waste Management for unpaid garbage collection : $35,844.21
Adams Fences, a Poughkeepsie company: $7,650.78
State insurance fund: $59,678.96
White Plains Coat & Apron Corp. $118,529.24
Carrier Corp.: $28,148.25
Thyssenkrupp Elevator Corp., an elevator installation and repair company: $70,000
Days Inn, Monticello: $6,153.82
State tax commission: $947,414.40
Mainetti, Mainetti & O’Connor law firm that was not paid: $76,310.28
Mitchell Wolff, Hoffman’s former partner: $2,027,821.44
Insurance Company of Pennsylvania: $50,185.68
Civil suit by a guest: $13,982
Civil suit by a guest: $12,971.87
Inphase: $130,000
NY Police Ecumenical Golf Outing: $2,515
Hess Corp.: $94,947.50
Civil suit by a guest: $2,751.56
Central Hudson utility company: $143,366.81
If you have any questions or news tips regarding the Nevele Grande, feel free to contact me at abosch@th-record.com
-AB
VIDEO: Eliot Spitzer speaks at SUNY New Paltz
The video below is a clip of the first 8 minutes of former Gov. Eliot Spitzer’s speech to a crowd of students and professors at SUNY New Paltz. Spitzer is introduced by Stu Brody, the former chairman of New York’s Democratic Rural Conference, and Hadi Salavitabar, dean of the School of Business at SUNY New Paltz.
Enjoy!