Lawyer Highlights Ongoing Litigation At Senior Complex

NORTH WILDWOOD – “There have been now more than eight years of litigation between Marina Bay Towers’ ownership and its investors against the city (North Wildwood) in an attempt to right these wrongs.”
That statement, taken from a release dated March 10, 2015, captures the essence of time involved in the complex legal web known as the Marina Bay Towers Case.
Marina Bay, an affordable, senior citizen apartment complex here, has been the center of controversy since 2006, beginning with a real estate tax levy. The matter comprises a suit against the original developer, Paul Cocoziello: Bonnie McNamara vs. Marina Bay Towers, Urban Renewal II. Salvatore Perillo, representing PAC Capital, reached out to the Herald and disclosed two documents to date concerning the matter at Marina Bay.
According to the release, Marina Bay suffered “multi-million dollar damage” after Superstorm Sandy struck the Jersey shore, when the proverbial waters rescinded, approximately 95 percent of the apartment units, roof, and exterior walls rendered many of the units “uninhabitable.” According to the release, the insurance carrier has not fully compensated the claim. Filing a lawsuit against the carrier was still pending, as of March 10.
Cocoziello wishes to restructure the Towers and, although the plan will bring changes, the defense counsel for Marina Bay assured residents that “it will have no negative impact on the current tenants.”
Converting 20 percent of the building into affordable housing will allow Cocoziello to convert other units into condominium units to rent or to sell. As the release states, “the foreclosure and restructuring will clear title and allow substantial repairs and renovation of the property to secure financing and proceed despite the insurance carrier’s delays.”
Perillo pointed to the long-standing legal battle with the City of North Wildwood since 2006. Under the late mayor William Henfey, the city assessed the property at $14 million and sought taxes from Marina Bay.
“That set the stage for a perfect storm,” the lease stated. “On the one hand, the senior citizen housing complex is only permitted under federal and state law to charge capped monthly rents at below-market rates to seniors whose incomes are limited, on the other, however, the wildly inflated real estate tax levy would have exceeded the revenue restricted property’s ability to pay it. This left Marina Bay Towers only two options: fight or fold.”
The courts have ruled that Marina Bay Towers, based on three separate laws, is exempt from real estate taxation, according to Perillo.
North Wildwood then sold tax lien certificates to Royal Tax Lien LLC d/b/a Crusader Lien Services in January 2007 and again in 2008. Cocoziello fought the city in court.
In 2012, a principal of Crusader, and soon the organization itself, both pled guilty to felonies following grand jury indictments and a U.S. attorney “probe to anti-trust violations.” The charges alleged, “Representatives and principals of Crusader engaged in bid-rigging tax lien sales at municipal auctions.” Individuals involved were awaiting sentencing as of March 10, 2015.
“Our prayers and toils for competent judicial redress became our last and only hope to save Marina Bay Towers from possibly falling victim to this tax-and-grab situation,” Cocoziello commented in a previously released statement.
When Patrick Rosenello became mayor, he inherited this unique and challenging situation.
According to Rosenello, the Marina Bay Towers Case is “complex.” Rosenello commented further on the tax exemption matter by saying that the land itself is tax exempt, as ruled by the courts. “We were satisfied with the decision,” Rosenello said in a phone interview. “We got a little what we wanted – they got a little what they wanted.”
Robert Beckelman, an attorney representing North Wildwood, said that no court order existed in 2007 which made selling the tax lien illegal. The city will appeal the decision made in 2013 on the tax lien and other matters concerning taxes, according to Beckelman. “The recent court decision was a partial victory for the city,” he said.
Ranging from the Appellate Courts to Marina Bay tenants seeking the appointment of a receiver, the case’s details continue to weave threads of intrigue and debate. From Cocoziello’s point of view, North Wildwood is undermining his attempts to reconstruct the Towers.
From the resident’s point of view, Cocoziello must go.
In February 2015, eight remaining “post-Sandy” tenants went before Superior Court Judge Raymond Batten in Court House. The press release commented on that hearing: “Although the city is not party to the lawsuit, it sent two attorneys to attend the hearing and take notes – again, presumably, on the taxpayer dole.”
A second hearing, postponed three times, is still pending.
Bonnie McNamara, in a previous phone interview, alleged that Cocoziello, owner of the Towers, has not filed certain documents with lawyers or with the state Department of Community Affairs (DCA).
The DCA has not made its inspection as of July 22. 
The state is behind us,” Barbara Waterman, a resident of the Towers, had said. “No one will be evicted; at least we are making progress!” Residents of the Towers have publically thanked Rosenello and city council for their support, especially when a series of pipes burst in the Towers during the winter.
The eight years of litigation, questions, and complex legal issues still await their final answer and conclusion to the matter.
Perillo released these documents in an effort to establish the “facts” surrounding the mounting tension known as Marina Bay.
To contact Rachel Rogish, email rrogish@cmcherald.com.