KINGSTON – As a court hearing kicked off on Monday, January 23 to determine whether a company with hopes of bringing gambling to Ulster County can purchase the Nevele Grande Resort, three more potential buyers appeared to protest the proposed sale.

Claremont Investments LLC wants to purchase the deed to the Nevele in Ellenville for up to $6.7 million. Because the property is in receivership, Surrogate Court Judge Mary Work must decide whether Claremont will be allowed to do so. As part of its offer, Claremont says it will pay an additional $5 million to the Nevele's thirty-two creditors if casino gaming is allowed at the property within five years of the property closing. Claremont originally hoped to finish its business by January 26. Judge Work is now saying she hopes courtroom proceedings will be finished by that day.

To the surprise of some in the full-capacity courtroom, three attorneys stood up with offers at the start of proceedings on Monday: Robert DiNardo, representing Bozeman Trail Properties LLC; Daniel Costello, representing Eleven Resort & Spa Catskills LLC; and attorney Richard Stoloff representing another buyer.

Work said in response to the new offers, "I'm not deciding which to pick. I'm deciding whether or not to approve the application by the court receiver."

In addition, Arthur Linker of Nevele's mortgage holder iStar Financial told the court that his client does not consent to the petitioned sale.

"This would be an additional event of default," Linker said. "The mortgage is already in default."

Linker then added that iStar could seek foreclosure.

Craig Hilliard, attorney for court receiver Mitchell Wolff, acknowledged iStar's position but said that Claremont's proposal is for the purchase of the "fee simple interest," which does not include the mortgage.

"iStar's mortgage would remain in place," Hilliard said.

Joel Hoffman, part owner of the Nevele, protested the petition. "I apologize for the mess this is in," he said. "This is the worst possible time to sell a hotel."

He estimated the property is worth $50,000 per acre, or $25 million. "I'm not a lawyer, but I don't understand how this sale could take place," he said. In addition to the laundry list of judgment creditors who are owed money, there are multiple liens on his house, some as high as $1 million, he added.

Hoffman suggested that the creditors and iStar could get equity in the hotel, and that he could be the equity holder.

Former Congressman Ben Gilman also appeared Monday on Bozeman Trail's behalf. They are offering $15 million for the property, and their offer is not dependent on gaming.

Eleven Resort & Spa is a proposal by Julia and Julius A. Nasso. It would be a family resort, Julius Nasso said. A "working farm," winery and equestrian center are also part of the proposal.

Another offer was made by Chinese investors for a motorcoach operation/resort at the site, according to Mark von Dwingelo, senior vice president of the Nevele's real estate broker Jones Lang LaSalle.

Von Dwingelo told the court Tuesday that Claremont was the only potential buyer who actively pursued the sale by visiting the site several times, doing its due diligence and understanding what von Dwingelo said was the "monumental task" of renovating the property.

Wolff took the stand Monday and Tuesday, testifying about how he was named court receiver in mid-2010, and what he has done since then. He said that by the time Hoffman closed the Nevele in July 2009, "it was run into the ground."

Wolff said he took steps to improve the property by paying insurance, establishing 24-hour security and making cosmetic improvements such as mowing the golf course and fixing up a schoolhouse on the property. "I made a promise to this court, in this chair, that I would sell this hotel," he told the judge.

On Monday, Larry Woolf testified. Woolf founded Navegante Group Inc., which will manage casino gaming at the Nevele if it is approved for all New York by voters and the state Legislature. He described his experience in developing casinos in Atlantic City, Las Vegas and Niagara Falls.

"I can assure you, we've been very transparent and heavily regulated," Woolf said. "It's my feeling that when the legislation comes out, the Nevele is the only place in Ulster County for a resort."

Judge Work then asked the million-dollar question: "If gaming is not approved, or if the Nevele is not a casino, what would become of the Nevele?"

"If gaming doesn't come to Ulster County, there is no hope," Woolf said. "We're taking a gamble that the Nevele will eventually become a gaming resort. If not, we lose. If it does, everybody wins."

Work asked Woolf about the state inspector general's report that several thousand dollars changed hands between Navegante and politicians who were reviewing its application for a racino at Aqueduct Raceway. Woolf said that the company's lawyers said it was allowed to donate that money.

Michael Treanor, a partner in Navegante, explained that Claremont 's final offer was to, 1) pay in full more than $1.5 million in back taxes; 2) pay about $100,000 to a group made up of past employees who hadn't been paid; and 3) cover receivership costs. Leftover, he added, were what he called "legitimate judgment creditors," and some judgments "related to lawsuits where Mr. Hoffman hadn't taken the necessary actions and default judgments were granted."

Treanor said that creditors would be paid once gaming was established at the Nevele. Hilliard had said earlier that creditors had the right to seek action to get their money if gaming is not allowed.

Treanor said the Nevele is poised to be the eastern "anchor" of casino gaming in the area. The western anchor would be the Concord hotel and Monticello Raceway.

"Time is of the essence," he said. "Once the train pulls out of the station, it's gone for good."