Days Inn Payment Pact Collapses – December 1, 2010

Wednesday, December 1, 2010

Kevin L. Hoover

Eye Editor

ARCATA – The City of Arcata’s patience with Valley West’s Days Inn motel is wearing thin.

The troubled motel has been behind on its water bill and has not turned over its full share of the Transient Occupancy Taxes (TOT) that it collects from lodgers.

Last March, Arcata won a $92,667.99 judgment related to delinquent TOT against the motel’s owners and a lien was placed on the facility. Suggestions that the business’s water might be cut off started payments flowing again, and in June, the City and the motel forged a payment agreement with owners Silver Creek Hospitality of San José to pay off the $123,995 of TOT and $23,617 water charges owed. The terms were for 12 months at six percent interest.

City Manager Randy Mendosa said the owners have been paying the monthly payments for the past debt of about $124,000, but never resumed paying the City for the current TOT and water utility charges which have accumulated to over $60,000 through September.

“The payment agreement required they continue paying the City for current TOT and water, so they have been in continued violation of the payment agreement since they signed it,” Mendosa said.

A notice delivered by the Finance Department on Oct. 7 gained no response, so a letter threatening legal action was sent Oct. 26 (see page 7). Mendosa said he is reconsidering the water cutoff, but is concerned about the employees’ jobs and is reluctant to create a boarded-up motel at Arcata’s northern entrance.

Calls and e-mail messages to owners Mukesh Mowji, Tarun S. Patel, Anil R. Patel and Days Inn Manager Mike Miller were not returned.

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5 Responses to “Days Inn Payment Pact Collapses – December 1, 2010”

  1. Bob Westhead

    Close it down! Silver Creek will have to sell the motel. Arcata will get its money. And, maybe a responsible owner will move in. A responsible owner will hie workers and pay better wages than the Patels pay.

    #19534
  2. Rob

    I stayed in this hotel in early 2009-and the manager at the time-mike miller lied to my face about the advertised rate I was paying being eligible for the parent chains promotional points plan for frequent guests.–i note mr miller’s deceptive behaviour has been noted by the government employees tasked with collecting taxes from this property as well.frankly, I am NOT surprised, and I think the parent chain should pull their flag YESTERDAY, ao as to salvage whats left of their reputation.

    #24203
  3. Rob

    I should also point out that said manager tried to extort a $200.oo ‘deposit’ from me at check-in for a $50.oo room, which, I have no doubt, had I coughed up, that I would have never seen again.this place is ran by pond scum.

    #24204
  4. Rob

    (apologies to any pond scum I may have inadvertently offended with that last statement)

    #24205

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