Secaucus Hotel Owner Accused Of Trying To House Migrants In Past

SECAUCUS, NJ — A man plans to reopen the former Empire Hotel in Secaucus, and another hotel he owns in Rockland County was sued this year for trying to house New York City migrants/undocumented immigrants.

The man is Ashok Bhatt, the president of Turtlebrook Investments, LLC.

As Patch reported, this fall Turtlebook Investments signed a 15-year agreement to lease the former Empire hotel site from Rosdev, a Montreal real estate company that owns the property.

It is the same Bhatt who was sent a warning letter from the town of Orangeburg, NY, alleging he tried to house New York City migrants at the Armoni Inn & Suites, a hotel he owns just over the New Jersey state line.

Orangeburg also sued Armoni Inn & Suites for contracting with New York City to house the undocumented immigrant families; you can read the lawsuit here.

Secaucus Business Administrator Gary Jeffas said when Bhatt first approached the town, Secaucus was initially not aware of allegations made against him that he tried to house migrants.

"From the beginning, they came in and told us they were signing a lease to operate the Empire as a hotel again," he said.

Secaucus, which has long fought attempts by Rosdev to convert the Empire into apartments, was at first elated the Empire would re-open as a hotel. The town of Secaucus even published this press release on Oct. 6, announcing the Empire would return to its glory days as a high-end hotel overlooking the Hackensack River, albeit with a different name.

Jeffas said once the town became aware of Bhatt's history, it had "three meetings and many phone calls" with Bhatt and his associates; the most recent meeting was held on Wednesday of this week.

"At every meeting we've had, we've told them the property is zoned for a hotel. It cannot be used for anything other than a hotel. Bhatt has agreed to that, and said he never intended it to be migrant housing."

Jeffas said he took it one step further, and this week he asked Bhatt to sign a letter, pictured above, stating the hotel would not be used to house migrants.

"I said I need a commitment from you that you intend to open this hotel for travelers, business travelers, tourists and so on. He said that is my intent. He signed it, confirming that was his intent," said Jeffas. "Now, I would usually never do this with a business person who seeks to open in Secaucus, but we said ... we want an additional commitment from you that you are using this as a hotel, this is your absolute and only plan."

Turtlebrook manages 15 other hotels in its portfolio, and Bhatt told the town of Secaucus he would clean up inside the Empire and reopen it as a hotel again.

Starting in May of this year, New York City has stated it is in the midst of a "humanitarian crisis" due to the unprecedented numbers of asylum seekers that have poured into Manhattan, many of whom entered the United States illegally across the southern border. New York City Mayor Eric Adams already said such large numbers "strained the city's capacity to provide temporary housing for the migrants ... the city has sought to utilize hotel rooms outside the city to provide temporary housing assistance for a small number of asylum seekers, with the city covering the cost of those hotels."

Undocumented immigrants, a mix of single men and families with small children, have been housed at hotels in Rockland and Orange counties and throughout the five boroughs. Jeffas said that, as far he knows, no hotels in Secaucus are housing migrants.

"I and my office have not received any calls or reports of that happening in Secaucus, absolutely not," he said.

Jeffas said he understands there are many Secaucus residents who would be welcoming of migrant families.

"I understand some would say, 'Oh, what's the big deal, just let people come and stay.' It actually is a big deal. If they used it for long-term stays, now it's not a hotel, it's a long-term facility. So the town of Secaucus would have to provide that every child staying there would go to Secaucus schools," he said. "They don't have cooking facilities there, so there are fire safety hazards that come up if people are cooking in their individual rooms. If it's long-term housing, it would have to be completely re-zoned as housing. A hotel can't suddenly flip the switch and say we are not a hotel, we're long-term housing and just deal with it."

"The hotel is zoned to be short-term stays only," he continued. "Secaucus would really be in the exact same position as the town of Orangeburg was: If the property is being used for something different than it is zoned for, we can shut them down or remove their license."

Instead of just a letter, why not have Bhatt sign a more formal legal document, such as a memorandum of understanding (MOU)? Towns across New Jersey increasingly use MOUs to confirm agreements with private businesses.

To have Turtlebrook Investments sign an MOU would be '"an extremely, extremely unusual step that we have never, ever taken with a hotel" in town, said Jeffas. "All we can do is take them at their word. If you use the building for something other than what is is zoned for, you are doing it at your own risk of the town enforcing its zoning laws. We would tell the same thing to any Secaucus property owner who has a house zoned for one-family, but started using it as a four-family home."

"We feel we have enough from them (referring to the signed letter and other legal documents)," said Jeffas. "We know darn well what we were told."

Town of Orangeburg says Armoni Inn & Suites was about to become migrant housing

In 2021, a real estate developer named Etta Ostreicher of Monsey, NY purchased the former Holiday Inn on Rt. 303 in Orangeburg, according to a report in the Rockland County Business Journal. She purchased the hotel under an entity named Palisades Estates EOM LLC, and renamed it Armoni Inn & Suites.

Bhatt is listed in legal filings as the hotel's operator. He rents the hotel building from Palisades Estates, similar to the way he will rent the Empire hotel building from Rosedev.

The town of Orangetown first sent health inspectors to the hotel in May of this year. On May 7, the town sent this violation letter to Bhatt, saying the hotel was in violation of its certificate of occupancy by allowing "up to four months of extended, non-transient housing."

"Dear, Mr. Bhatt. Today, Monday May 7, 2023 the town of Orangetown Assistant Fire Inspector and Assistant Building Inspector conducted a site inspection at the Armoni Hotel," read the town's violation warning. "This inspection was based upon the town's learning of the proposed use of the hotel for up to four months of extended housing as indicated by NYC Mayor Adams ... and the observation of several mattresses outside the hotel on May 5 and May 6 ... An individual who identified himself as the chef for the hotel advised that he got word that a busload of people would be coming to the hotel for an extended stay, and that the employees had to take queen beds out and put twin beds into approximately 60-70 rooms."

Two days later, on May 9, Orangetown sued Armoni Inn and Suites, plus Palisades Estates EOM LLC. Also on May 9, the Rockland County Department of Health ordered the Armoni to close, saying it was violating health codes, and that if it intended to be long-term migrant housing, it would need additional licenses to operate.

Speaking to this Patch reporter, Bhatt said:

"I never had any contract with the city of New York to house migrants and I never had any intention of housing migrants there," said Bhatt Thursday. "I am the lessee, the tenant. I cannot speak for the property owner. But I never had any plans, intentions or contracts with New York City for migrants coming to that hotel. I never had any knowledge of immigrants coming to that hotel. I have no intention or contracts to take migrants (in Secaucus)."

"People can gossip or talk anything they want to. We never had any migrants in my Orangeburg hotel and I never signed any contract with the city of New York to take migrants. I have nothing to do with Palisades Estates; they are the landlord, I am the tenant."

"They can make all the noise they want," he said, referring to the town of Orangeburg and Rockland County. "They shut my hotel down for two weeks and allowed it to reopen again. It is open now."

The May 9 lawsuit is publicly available here. It reads in part:

"On May 5, 2023, the Mayor of New York City, the Honorable Eric Adams, announced a new 'program' to provide up to four (4) months of housing for single-adult males now in the care of New York City in nearby rural and residential counties. Mayor Adams' unilateral 'Decompression Strategy' gives no regard to local zoning, building, fire and code provisions governing the sites "selected" by the city, including sites within the county of Rockland. The Armoni Inn & Suites has been identified as one of these sites. It has ceased operating in conformance with the town zoning regulations and the Certificate of Occupancy issued for these premises and is, based upon site inspections conducted by town staff, in the process of converting to a long-term residential facility."

Hotel owners file their own lawsuit

In turn, Palisades Estates filed their own lawsuit against Rockland County (Orangetown/Orangeburg goes by both names and is in Rockland County).

On May 24, white-collar New York City law firm Pryor Cashman filed Palisades Estates EOM, LLC et al v. County of Rockland, New York, et al. on behalf of Palisades Estates and two other Rockland County hotels being used for migrants housing, the Crossroads Hotel and the Hudson Conference Center.

Todd Soloway, a partner at Pryor Cashman, said in this press release the hotels “are being wrongfully interfered with and harassed by the counties, each of which is engaged in an unconstitutional and discriminatory Not-In-My-Backyard campaign to bar migrants.”

His lawsuit also accused local governments of "catering to xenophobic and political interests ... defendants have exceeded their power and authority and have targeted and retaliated against (the hotels) for helping people in need."

By June 14, two Rockland County judges sided with the town of Orangetown, and ruled that no hotel in the county could be used to temporarily house asylum seekers. The court placed an injunction on Armoni from housing migrants.

The case against the Armoni went all the way to a federal judge, who ultimately ruled Rockland County could not prevent any hotels in the county from housing migrants: After that June 14 ruling, the New York Civil Liberties Union filed its own separate lawsuit on behalf of five migrants.

A federal judge ruled in that lawsuit that "executive orders issued by Rockland and Orange counties that sought to bar New York City from sending migrants there were unconstitutional," the Albany Times-Union reported.

However, migrants ultimately were never housed at the Armoni.

Hotels "milk the government" to house migrants, says one hotel owner

Secaucus has many hotels, and they pay a substantial portion of the town's tax base.

A man who owns and operates another hotel in Secaucus (not Empire) spoke on background about this. He said it's well known in the industry that struggling hotels will contract with cities to become long-term housing for the homeless, or migrant families.

"The hotel owners expect to milk the government for money in return. They get a pocketful of cash from the government and move on," he said.

New York City Health and Hospitals is the city agency charged with housing migrants in New York City: The New York Post reports that city agency is paying the Holiday Inn in the Financial District $190 a night per room to house migrants. If every room in the hotel is booked, which the city promised it would be, it adds up to $93,500 a month from the city, and $2.8 million a year.

Legal documents:

May 7, 2023 violation letter the town of Orangeburg, NY sent Ashok Bhatt at the Armoni Inn & Suites

May 9, 2023 letter from Rockland County ordering the Armoni to close

May 9, 2023 lawsuit filed by the town of Orangeburg against the Armoni hotel and property owner Palisades Estates EOM LLC

May 19, 2023 lawsuit New York City filed against all upstate counties, seeking to require them to allow migrant housing

May 24, 2023 press release from Pryor Cashman law firm announcing Palisades Estates LLC sued Rockland County

Last Thursday: Secaucus Police Search Abandoned Hotel Amidst Reports Of Squatters

Original report: New Company Takes Over Empire Hotel Lease; Will Make It A Hotel Again