City of Pasadena Obtains Close To $500,000 in Settlement with Former Sheraton Pasadena Hotel Operator for Unpaid Hotel Tax

The City of Pasadena has received $497,000 to resolve its claims in the bankruptcy of Urban Commons Cordova A, LLC, one of the former operators of the Sheraton Pasadena Hotel. Urban Commons took hundreds of thousands of dollars in transient occupancy tax and tourism business improvement district assessment monies without turning the monies over to the City on a monthly basis, as required by law.

In proceedings unrelated to Pasadena earlier in Urban Commons' bankruptcy case, the bankruptcy judge found two of Urban Commons' former principals to be "fraudsters." "I am proud of Pasadena for standing up to collect money owed to its taxpayers, which was wrongfully withheld," said Mayor Victor M. Gordo. The City has collected a large multiple of what some other creditors received from Urban Commons.

Pasadena's lawsuit in California court continues against other operators of the Sheraton Pasadena Hotel, where the City is seeking the remaining unpaid hotel tax, interest and penalties.