(Photo courtesy Allegria Facebook)
The document dump story first published in the Long Beach Herald – that the City is broke and must borrow money to make payroll – has yet another angle to it, and that’s everyone’s favorite Long Beach hotel, the Allegria.
City Manager Theofan obliquely confirmed that the Allegria owes the City more than $300,000 in back taxes, and sewer and water fees.
The Allegria, to their credit, commented to Newsday and said, “Any issues related to the Allegria are contingent upon our current reorganization plan that is before the court [and] it [paying the city] is part of our current reorganization plan.”
What does that mean? Basically, that the City and the Allegria have already been in court for some time, confirming the City has long known that this money wasn’t coming in. The Allegria is working it out through their lawyers, their lenders’ lawyers, and the City’s lawyers, how much and when they will pay back their debts. You’ll remember that we talked about the land under the Allegria (owned by a separate corporation) filed for bankruptcy in the summer.
Again, like the supposed shortfalls caused by Irene, this falls into the category of things the City has known about for months, and it is impossible that this just “surprised” city officials, requiring last minute, emergency budget action.