Point Beach Motel Owner Sues Mayor and Council

Local motel owner Joseph Bilotti is suing Point Beach Mayor Vincent Barrella and council regarding their narrow January vote for a higher hotel/motel tax.

However, the wording of the lawsuit, filed on June 30, makes it clear he is focusing his ire primarily on Councilman Michael Corbally.

Bilotti, longtime owner of the Surfside Motel on Broadway, is alleging that Corbally had a conflict of interest when he voted in January to increase the tax by 1.5 % to a total of 3 percent on the gross receipts of local motels and hotels.

Corbally is a Realtor with the William M. Ball Agency on Ocean Avenue in Point Beach "which specializes in summer rentals and is in direct competition with motels in Point Beach," the lawsuit states.

"As such, Mike Corbally is one person who would greatly benefit from imposing a 1.5 % motel tax as he actively rents and works for the William Ball Agency," the lawsuit states.

Corbally should have abstained from the vote, which would have resulted in a 3 to 2 vote against raising the tax, the lawsuit says.

Instead, it continues, the higher tax was passed, causing "severe and irreparable pecuniary harm" to Bilotti who seeks "compensatory and consequential damages, attorney fees, interest and cost of suit."

No specific amounts are mentioned in the lawsuit, prepared by attorney Alexander Iler.

Bilotti's lawsuit does not specify how much in "damages" he is seeking.

However, he did say on Monday, "The politicians continue to hurt the Point Beach businesses because the businesses have very few votes.

"The businesses in the Beach which at one time paid 22% of the property taxes now pay only about 18%. As this continues to drop more and more of the tax burden gets shifted to the residential properties!!!!," Bilotti said in an email.

Corbally asserts that when he campaigned last year, he said at the time he was in favor of restoring the motel/hotel tax back to its original 3 percent, that everyone knew he is a Realtor, and that he also supports imposing that type of tax on seasonal house rentals.

Corbally and Barrella have said many times they favor such a tax on seasonal rentals, but that state law does not give municipalities that option and they have been unable to convince state officials to change that.

In a prepared statement, Corbally said: "The best interests of the residents of our community have been my guiding light while on Council.

"When I was a candidate for Council last year I promised the residents of the Beach that if elected, I would vote to reinstate the hotel/motel tax at the first regular Council meeting. That campaign promise was fulfilled.

"Residents should be aware, however, that vote is now being challenged via a lawsuit by Joe Bilotti of the Point Beach Voters and Taxpayers Association.

"The contention of Mr. Bilotti is that since I am a real estate agent, I had a conflict and should have abstained from voting.

"I don’t agree. Along with that campaign promise was my personal resume which stated that I was a real estate agent," Corbally continued.

"At no time, since taking office, did any Council member or attorney suggest that I should have abstained from the vote that I promised the community I would make.

"I have consistently supported the hotel/motel tax and have also supported the concept of taxing seasonal rentals," he said.

"I will fight this misguided attempt to rob the residents’ potential revenue of $250,000. I hope I can count on the residents to support me in this battle."

Barrella had said in January that most hotel and motel owners would likely charge guests an extra $1.50 per night to cover the cost of the hotel/motel tax increasing by 1.5 percent to 3 percent.

He said that guests having to pay an extra $1.50 per night was hardly going to put Surfside or any other hotel or motel out of business.

In January, council members Sean Hennessy, Frank Rizzo and Jeffrey Dyer voted against restoring the tax by 1.5 percent back to 3 percent, with Council members Kristine Tooker, Tim Lurie and Corbally voting for it.

Barrella, who is only permitted to vote when there is a tie, voted yes.

Last year, the council, with barely enough votes, voted to reduce the tax from 3 percent down to 1.5 percent.

The council members voting for the reduction, which went into effect this past October, were Hennessy, Rizzo, Dyer and Ray Cervino.

Cervino is no longer on council, having been replaced by Corbally in the November election. Tooker and Lurie voted against the reduction.

Bilotti had said in an interview on Jan. 4 that he is selling his motel "to foreigners" whom he did not name and that he expected a closing in June. However, he still owns the motel, as stated in his lawsuit.

Barrella said on Sunday that he would not comment on the merits of the lawsuit.