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Super 8 hotel in Moraine owes thousands in taxes

City says bill tops $25,000; county says property tax bill tops $40,000.

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By Kristin McAllister, Staff Writer Updated 1:00 AM Sunday, November 28, 2010

MORAINE — While waiting for payment of unpaid motel taxes from the owners of the former and now bankrupt Holiday Inn South on Dryden Road, the city of Moraine is also trying to recoup unpaid motel taxes from the Super 8 Moraine/Dayton hotel, just across the street.

Moraine Law Director Robert Portune on Nov. 4 filed a civil lawsuit against Nisha Investments, owner/operator of the Super 8 franchise hotel at 2450 Dryden Road, stating that Nisha owes the city more than $25,000 in unpaid taxes dating back to Dec. 31, 2008.

The lawsuit states Nisha has not responded to Moraine’s requested audits, and no one from the investment group attended a June 16, subpoena-ordered Moraine court hearing.

According to the Montgomery County Treasurer’s Office, Nisha owes $41,785.52 in 2009 county property taxes.

Harshad Shah, Nisha’s president, could not be reached for comment.

Phyllis Hewitt, supervisor of Montgomery County’s delinquent real estate department, said Nisha has not asked for a Board of Revision hearing to seek a reduced value of its Super 8 property for the time period of the taxes owed.

But what is frustrating, Hewitt said, are ignored attempts to work out a payment plan with property owners, often resulting in a case of foreclosure.

“We really do bend over backwards to try to get people in here to resolve their issue before it ever comes to that,” Hewitt said.

If the Super 8 owed taxes remain unpaid into 2011, Hewitt said the county likely will issue a lien against the property, after which, the county could sell the lien to investors to try to recoup the delinquent money.

And in Ohio, investors can buy liens that carry an annual interest rate as high as 18 percent.

In the Holiday Inn South case, Hewitt is also working to recoup nearly $400,000 in back taxes for years 2005 to 2009 from the hotel’s former owners. Those owners filed for bankruptcy and left the city of Moraine with another $180,577.29 in unpaid motel and income taxes.

Before it was a Days Inn, the hotel was briefly called Hotel Pure and before that, Holiday Inn South.

Between the ownership and name changes of Holiday Inn South and Hotel Pure, Moraine is owed more than $205,600 in unpaid taxes.

Portune said the city is waiting for a response from the Super 8 owners regarding the Nov. 4 civil lawsuit and also on a ruling out of the United States Bankruptcy Court concerning the Holiday Inn South delinquent taxes.

Moraine officials recently failed in their attempt to prevent Days Inn’s new owners from obtaining a state liquor license. The Ohio Liquor Control Commission rejected the city’s objections and granted the license.

Hewitt said she will meet soon with the Days Inn’s new owners, who are now responsible for the unpaid county property taxes, to establish a payment plan.

“The plan would require them to make monthly payments and when the current taxes are due, the full amount must be paid,” she said.

Contact this reporter at (937) 225-9338 or kmcallister@DaytonDailyNews.com.

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