PATERSON — The owners of the brownstone house are 15 months behind — or an estimated $136,969 — on payments to the city to settle a tax appeal involving a small parking lot next to the party room, city officials say.
That information was brought to light by Councilman Luis Velez, who investigated The Brownstone’s property taxes after he recently paid the venue for a past-due bill from his August 2023 wedding reception.
Albert Manzo, who is part of the family that owns The Brownstone, dismissed the revelations about the late payments from the tax appeals as “sour grapes” from Velez.
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“That’s because he got a black eye when he didn’t pay his bill,” Manzo said of the theft of services charges he filed against Velez in municipal court.
The attorney rejected any suggestion that he contacted a reporter about The Brownstone’s tax arrangements in retaliation for the complaint about the theft of the wedding payment.
“The facts are the facts,” Velez said. “Nobody is above the law. I’m just disappointed that he was given a chance and still didn’t succeed.”
Brownstone parking taxes cut by $1 million
The case involves a tax appeal settlement involving The Brownstone’s parking lot, which was approved by Velez and other City Council members in March 2023. The tax appeal covered the six years from 2018 through 2023.
As part of the agreement, AM Manzo LLC was able to have the brownstone parking lot assessments reduced by more than $1 million per year. For 2023, that meant the Manzo Corporation would have to pay taxes based on the parking lot being assessed at $1.5 million instead of $2.5 million, the city council said.
In New Jersey, property owners who file a tax appeal generally do not have to pay property taxes while the lawsuit is pending. As a result, although The Brownstone’s parking tax decreased, the company still owed $658,368 in back taxes that accrued during the appeal process, the board’s resolution said.
Under the settlement, the Manzo Corporation agreed to pay the city $13,605 per month to cover the back taxes.
Paterson Tax Court officials said the Brownstone owners made two larger-than-required initial payments on the settlement in May 2023, totaling $80,616. Tax officials said Manzo LLC has made no other payments on the repayment plan since then.
City officials said they haven’t calculated exactly how much Manzo Corporation is late on payments. Sixteen months have passed since the payment plan went into effect. At $13,605 a month, Manzo would have owed the city $217,685 in back taxes. The two lump sum payments due in May 2023 leave The Brownstone about $137,000 short of its obligation.
Albert Manzo said he does not handle matters such as tax appeals. He said he was not familiar with the details of the settlement or whether the company is keeping track of its payments. Paterson Press asked to be referred to the person at The Brownstone who would know the details of the payment plan. But Manzo declined to make that person available to a reporter.
“The fact that The Brownstone is still standing after COVID is nothing short of a miracle,” Manzo said, referring to the hospitality venue’s closures during the pandemic. “The Brownstone was shut down by the government. Did our tax bills stop coming in? No, they didn’t.”
Current tax payments for the actual party room
Manzo stressed that his company is up to date on all property taxes for the lot where the actual party venue is located. He claimed that The Brownstone — made nationally famous by the television show “Real Housewives of New Jersey” — “is the shining star of the hospitality industry in the city.”
“What other businesses have people coming from far and wide to visit Paterson, New Jersey?” he asked.
Manzo says he grew up half a block from the venue and has never considered moving his business, even though he says it can sometimes be more difficult to operate in Paterson.
“It’s not easy to be successful in this city,” Manzo said. “Unfortunately, people from outside have their prejudices.”
Paterson Press sent Mayor Andre Sayegh two messages last week asking if his administration was taking steps to address the Manzo company’s shortcomings in the payment plan. Sayegh, who attended Velez’s wedding and numerous other events at the Brownstone, did not respond.
Velez ran for mayor in 2022 and finished fifth in a five-man election. The 5th Ward councilman said he plans to run again for the top job in Paterson City Hall in 2026. He shouldn’t count on getting Manzo’s vote.
“There are many people who are qualified to be mayor of this city,” Manzo said of Velez. “He is not one of them.”
This article originally appeared on NorthJersey.com: Brownstone party hall $137,000 behind on property tax payments
