Council gives Continental Inn owner until April 25 to pay roughly $388,000 in unpaid hotel taxes or face property injunctions

The city presented a collection case to council after efforts to reach the owner of Continental Inn LLC failed: the city’s collection documents show the business is liable for about $314,000 in unpaid hotel occupancy taxes, with approximately $74,538 in penalties and interest, for a total liability of about $388,000 as of the meeting.

Details and context: staff told council that the taxpayer had filed some earlier returns (payments for December and January), but had not filed or paid for February or March as of the meeting. Staff said the owner had asked for interest and penalty waivers and had requested an informal payment plan with partial payments, but city policy does not permit staff to unilaterally waive penalties. Staff described prior outreach by the city and the collection agency and said payment plans freeze interest and penalties as of the plan approval date.

Council action: after discussion, a council member moved — and the council seconded — to require that Continental Inn pay the full amount (taxes, penalties and interest) by April 25. The motion included direction to file in Cameron County court to obtain injunctions against the three properties if full payment is not received by that…