Hilton owner avoids court action for now

The Florida-based owner of the Hilton Pittsburgh headed off possible court action by paying a large portion of a $400,000-plus tax bill this week, Allegheny County Treasurer John Weinstein said Thursday.

Boca Raton, Fla.-based Shubh Hotels paid about $372,000 in delinquent hotel-motel taxes that the county will apply to the amount it owes through November 2008, Weinstein said.

"They made a substantial payment, so we are holding off legal action," Weinstein said.

He had threatened to seek payment in Common Pleas Court if the company didn't move to resolve the situation involving the city's largest hotel.

Shubh, which has run into financing problems as it tries to finish a $27 million renovation of the 710-room hotel at Gateway Center, still owes about $100,000, including $70,000 through November, Weinstein said.

The remaining debt is from December and January on the 7 percent tax the county collects on hotel room-charge proceeds.

The company has been given an additional 30 days to pay the remaining bill. Weinstein said he plans to meet with company officials next week to discuss their plans to do so.

Harris Mathis, Shubh's chief operating officer, said the company plans to pay its overdue taxes, plus interest due.

However, the company still would like the county to "give it a break" on penalities due. Officials hope to discuss that when it meets with the county.

As reported, the hotel has completed an interior upgrade that included renovation of guest rooms and expansion of its Promenade restaurant, and the bar formerly known as the Pub.

But last spring, construction activity stalled on a 17,000-square-foot addition facing Point State Park that is to include an indoor glass-enclosed swimming pool, and additional meeting and banquet space on the lower two levels.

Exterior work came to a stop in May, when P.J. Dick, the prime contractor, and other companies left the construction site, with some filing liens and lawsuits seeking payments for delinquent bills.

P.J. Dick returned in mid-December, but in recent days, work again appears to have slowed.

"The contractor is still on the job, but we are awaiting deliveries of steel," Mathis said.