Oheka Castle's boss Gary Melius said he has filed for Chapter 11 bankruptcy to postpone the foreclosure sale of historic property.
He said the castle has been foreclosed for 10 years but will be sold this week, so he filed for bankruptcy to save it.
“I have foreclosure; I will lose that status on August 7. I have been foreclosed for 10 years, but the judge allowed them to sell it, so I can no longer keep them out,” he said. He refers to banks and lenders. An auction is scheduled for Thursday.
The claim was filed last Thursday in the U.S. Bankruptcy Court in the Eastern District of New York, according to court documents.
What was discovered on News Day
- Gary Melius, Oheka Castle owner, He said he had filed for Chapter 11 bankruptcy to postpone the foreclosure sale of the historic estate.
- Landmark property auction It was scheduled for Thursday.
- Melius says Oheka Castle Hotel and Real Estate Will continue to operate.
The property is listed in the filing as Kahn Property Owners LLC and owes creditors $63.5 million. The document says the property has zero cash, with $57.27 in its checking account. The property owns $92.8 million in assets, including properties, machinery, equipment and vehicles.
Located on West Gate Drive in Huntington, Oheka Castle is a popular wedding venue, restaurant and hotel. According to the castle's website, the 109,000-square-foot French-style castle remains the second largest private residence ever.
In 1941, the castle appeared in the form of Xanadu in “Citizen Kane” and recently, Taylor Swift shot her music video, which was “Blank Space”.
Melius said Oheka Castle Hotel and Estate will continue to operate.
“The wedding is still on it,” he said. “No one should worry about it.”
Gary Melius of the Castle in 2014
Melius, a political power player on Long Island, The property was purchased in 1984 and lived there.
Wantagh-based attorney Joseph S. Maniscalco, who represented him in the bankruptcy proceedings, said in an email that Melius will “continue to own and operate his iconic site while completing a multi-year plan to develop luxury apartments on the property. We intend to work with all parties and courts to successfully stand out from Chapter 11.”
Melius previously told Newsday that the castle was taking over the financial situation. The receiver is the designated party of the court responsible for managing the business operations.
A company seeks Chapter 11 protection to allow it to reorganize its financial position without being threatened by creditor litigation.
In March 2023, the town council provided a green light to Kahn Property Ellly LLC to build a residence in Oheka II, a four-story building with 95 housing units on the west side of East Gate Drive.
A month later, the Cold Spring Country Club — which is next to the castle — and its development partner, Cold Spring Development Partners LLC, filed a lawsuit against the town, Kahn Property Owner LLC, Jeffrey Kolessar and David Rosenberg, alleging the town board “abused its authority” when it granted Melius an additional use permit, which he needed because the castle is in the town's historic building overlay district.
The lawsuit was dismissed in October 2023. It is not possible to contact the Country Club representative immediately.
Town officials said the status of OHEKA II’s residences before the town was immediately available.
In a News Day article, town supervisor Ed Smyth said he praised Melius for “a decades of efforts to restore and maintain Oheka Castle” and added that his “extraordinary” efforts should not be ignored.
“The town will monitor legal cases to ensure that the public's interests are protected, especially the maintenance of the castle and surrounding property,” Smith said in the text.
Aerial view of 2010 shows the Oheka Castle. Credits: Kevin P. Coughlin/Kevin P Coughlin
On February 24, 2014, Melius was shot in the head outside the castle, and the crime has not been resolved.
Melius was seen entering Mercedes in a surveillance video released by the police, when a masked gunman approached and fired three shots.
Melius once hit. Suffolk police said the shooter was seen fleeing the light-colored Jeep Grand Cherokee.
He spent months recovering while Long Island Politics’s county executives who visited him in hospitals, including Nassau and Suffolk.
In a video posted by Melius after the shooting, he said: “I want you to know that I'm recovering and getting better, and I look forward to starting again.”
Melius gave the information a $100,000 reward that would help resolve the shooting and called on the FBI to assist Suffolk police in the investigation.
Although the FBI joined the investigation, no arrests have been made.
Newsday's Nicole Fuller and James T. Madore contributed to the story.
Deborah Morris is a local Long Islander covering the town of Huntington.