{"id":17687,"date":"2025-07-08T06:05:14","date_gmt":"2025-07-08T10:05:14","guid":{"rendered":"https:\/\/shorebeat.com\/lavallette-seaside\/?p=17687"},"modified":"2025-07-08T08:23:57","modified_gmt":"2025-07-08T12:23:57","slug":"seaside-heights-motels-continuing-to-operate-without-licenses-inspections","status":"publish","type":"post","link":"https:\/\/shorebeat.com\/lavallette-seaside\/2025\/07\/seaside-heights-motels-continuing-to-operate-without-licenses-inspections\/","title":{"rendered":"Seaside Heights: Motels Continuing to Operate Without Licenses, Inspections"},"content":{"rendered":"
\"Properties<\/a>

Properties selected for an investigation into redevelopment declaration, Seaside Heights, March 2022. (Photo: Daniel Nee)<\/p><\/div>\n

Seaside Heights officials have alleged in court documents that as many as three motels are continuing to operate without mercantile licenses or valid inspections as a legal battle continues, with the latest court filing from the borough indicating ongoing issues, including an allegation of insects observed by an inspector on a recent visit to one of the establishments.<\/p>\n

The long-running dispute came after the borough began proceedings to revoke the mercantile licenses of the Cloud 9 Inn, Atlantic Motel, Flamingo Inn and La Fontana Motel. Of those four, three \u2013 Cloud 9, Atlantic Inn and Flamingo \u2013 were all continuing to operate even after they were found by the borough to be in violation of numerous safety codes, zoning codes, using excessive police resources, and were the subject of an injunction issued by a Superior Court judge. All of the motels are at least partially owned by Edison businessman Sandip Patel, who was convicted in 2016<\/a> for stealing more than $81,000 in federal disaster relief funds from the Federal Emergency Management Agency (FEMA) by fraudulently claiming to provide temporary shelter to victims of Superstorm Sandy.<\/p>\n

Last week, the borough council voted to adopt a decision by made by a hearing officer finding that there was sufficient evidence to permanently revoke the mercantile licenses of the final two motels, Cloud 9 and La Fontana. Patel and his legal representatives have since sued the borough in Superior Court, denying that they are operating illegally since they deny the code is \u201cvalid and enforceable.\u201d<\/p>\n

\u201cThe hearing officer did determine, after two extensive hearings, that there was enough evidence to permanently revoke both of those licenses,\u201d said Borough Administrator Christopher Vaz, referring to the Cloud 9 Inn and La Fontana establishments. Mercantile licenses are also recorded in court documents as having been revoked for Atlantic Inn and Flamingo Inn.<\/p>\n\n\n\n
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  • Cloud 9 Inn: <\/strong>124 Hamilton Avenue<\/li>\n
  • La Fontana Motel:<\/strong> 135 Grant Avenue<\/li>\n
  • Flamingo Motel:<\/strong> 124 Kearney Avenue<\/li>\n
  • Atlantic Inn:<\/strong> 1000 W Central Avenue<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    In a filing with the court June 25, 2025, Kenneth Roberts, the borough\u2019s code enforcement and zoning officer, swore in a statement that the impartial hearing officer, attorney Michael McKenna, found the borough met its burden of proof to revoke the mercantile licenses for Cloud 9 and La Fontana after \u201cclearly demonstrating that the operation of the Cloud 9 Inn and the La Fontana would substantially strain and diminish critical municipal resources, and would also be injurious to the overall public health, safety and welfare.\u201d<\/p>\n

    In addition to the mercantile license revocation, the filing from the borough states, Cloud 9 \u201chas outstanding State Fire Marshall violations that required the permits from the borough to perform the work.\u201d<\/p>\n

    The owners, officials allege, completed the work without permits or inspections, then reopened for business.<\/p>\n

    \u201cDespite the fact that the motel has no mercantile license, no certificates of occupancy, and a temporary injunction is in place preventing the operation of the motel without compliance with borough ordinances, the Cloud 9 is open and accepting guests,\u201d the filing states.<\/p>\n

    Roberts told the court The Atlantic Inn currently has no mercantile license, and has experienced 119 police calls for service in the last year. The filing also stated a temporary injunction had been granted, preventing the facility from operating until it complies with codes and obtains sufficient licensing.<\/p>\n

    \u201cI personally visited the Atlantic Inn the week of June 23, 2025 and witnessed insects crawling all over the front desk,\u201d Roberts stated in the court filing.<\/p>\n

    The Flamingo Inn, likewise, has no mercantile license and has had 56 police calls for service in the last year, but continues to operate.<\/p>\n

    Shorebeat confirmed the Cloud 9 Inn was accepting reservations Tuesday night for $78, Atlantic Inn offered rooms for $75, and Flamingo for $61. La Fontana was not accepting reservations and has been listed as permanently closed by motel booking websites.<\/p>\n

    Patel, through his attorney, filed an answer to the borough\u2019s request that the court enjoin him from opening the motels or leasing any parts of them until inspections are completed, the facilities pass the inspections, and are awarded mercantile licenses and certificates of occupancy. A default judgment had initially been entered against Patel, but both parties entered into a consent order July 3 which set aside the default judgment and provided Patel 10 days to file an answer. That answer was filed with the court Monday, denying the borough\u2019s charges, claiming that motel inspections are a state function \u2013 rather than a municipal function \u2013 and demands attorneys\u2019 fees from the borough in a counterclaim.<\/p>\n

    In his counterclaim, Patel also contended that he was a victim of a \u201ctargeted campaign to eliminate older, legacy hotel businesses \u2026 in favor of high-end condominium developments.\u201d<\/p>\n

    The cross-complaint also accuses the borough of using its regulatory power to attempt to force Patel out of business, which constitutes a de facto unlawful taking of property.<\/p>\n

    Long before the borough\u2019s current building boom, however, Patel faced legal issues over the quality of his establishments, including a lawsuit filed by the Travelodge motel chain<\/a> seeking to compel him to remove the company\u2019s name from one of his Seaside Heights properties following failed inspections made by Travelodge quality control personnel.<\/p>\n

    \u201cWe\u2019ve been in court with these companies and individuals, and there is another court date coming up,\u201d said Vaz, before the borough council unanimously voted to accept the decision rendered by the special counsel in the license revocation matter.<\/p>\n

    The original complaint against Patel and his companies, the statement filed by the zoning officer, and Patel\u2019s answer filed Monday are embedded below.<\/p>\n

    Original Complaint:<\/strong><\/p>\n

    Original Complaint Filed Against Motels<\/a> by Shorebeat<\/a> on Scribd<\/p>\n