ECON Westwood Mall businesses in the dark for day 6 as electric bill remains unpaid

Hfcomms

EN66iq
By Jerry Tudor, Shannon Konoske and TV6 News Team
Published: Mar. 29, 2024 at 9:34 AM EDT|Updated: 1 hour ago

MARQUETTE TOWNSHIP, Mich. (WLUC) - Power remains off and front doors locked at the Westwood Mall in Marquette Township Monday, leaving internal businesses in the dark for six days.

Affected business representatives in the mall have told us have told TV6 power was shut off by the Marquette Board of Light and Power Wednesday because of an electric bill that has not been paid by the retail group that owns that portion of the mall, Kohan Retail Investment Group of New York.

Avery Smith, owner of Timber Yeti Axe Range, told us the payment was supposed to be wired by 9:00 Monday morning. However, by 1:00 p.m., there had been no sign of restored power. Businesses inside who occupy spaces owned by Mike Kohan are growing increasingly frustrated.

Timothy Paavola, owner of The Rampage Room in Westwood Mall, said his business has become disappointed by the investment group and its “constant lies,” saying his business is feeling the impacts.

“Mr. Kohan himself said it was a ‘clerical error’ and the electricity would be turned on last Thursday,” Paavola told TV6 in a written statement Monday afternoon. “We had to cancel multiple appointments last weekend. We just want answers. Are the bills going to be paid? We pay our monthly rent and we pay Kohan extra for the cost of our utilities. If the electricity gets turned back on, how long do we have until it’s not paid anymore? We feel bad for all of the employees and other businesses affected by this.”

But, an electric bill isn’t the only missed payment at Westwood. The Marquette County Treasurer Jacqueline Solomon told TV6 Friday that Westwood Mall Realty Holding, LLC owes outstanding taxes in the amount of $265,987. She says if the 2022 taxes remain unpaid through March 31, 2025 the property will be forced to close.

TV6 spoke to a representative of the Marquette Board of Light and Power Monday afternoon to inquire about the amount Kohan owes, as well as if they’ve received any payment yet. The MBLP said it is unable to provide details about a customer’s account and that the information would have to come from the mall. TV6 has left a message with Mike Kohan and emailed his investment group, but has not heard back. We also left a message with the mall manager Monday morning.

TV6 will continue to update this story as more information becomes available.

Last published: Mar 29, 2024 8:52:53 PM
For the third day, signs on the front entrance of the Westwood Mall in Marquette Township say it is closed because of an “electrical problem.” But representatives for businesses in the building have told us power was shut off by the Marquette Board of Light and Power because of a past-due bill, and that it’s not the first time.

Others posted the notice they received from the BLP to social media. But businesses inside the mall tell us, it’s not the local management at the mall responsible for that payment, it’s the owner.

“I want the people of Marquette to know that the management at the mall is not to blame for this, it’s the owner of the corporation, who’s not even a Michigan resident,” Owner of Timber Yeti Axe Range Avery Smith said.

The Westwood Mall was sold in 2019 to Kohan Retail Investment Group, owned by Mike Kohan of New York. Kohan owns 52 mall sites around the country and his website claims to to invest in local communities by purchasing shopping centers and working to revitalize them.

But other malls owned by Kohan have run into similar problems. In November, the Marshalltown Mall in Iowa reportedly closed after an electric bill was left unpaid by Kohan for 10 months, according to WHO13 in Iowa.

This week, the Towne West Mall in Witchita, Kansas has also been closed since Wednesday for an unpaid electric bill according to KSNW. A non-profit that works out of that mall also called us to confirm the outage has been going on there for three days.

But, an electric bill isn’t the only missed payment at Westwood. We also asked the Marquette County Treasurer if there were back-owed property taxes on the mall.

The treasurer says Westwood Mall Realty Holding, LLC owes outstanding taxes in the amount of $265,987. She says if the 2022 taxes remain unpaid through March 31, 2025 the property will be forced to close. Smith says he’d like to see a local owner take over the mall.

“Local Ownership, that’s my thought, somebody local that owns the mall, that cares about it, I’m just going to say what’s on everybody’s mind, the guy that owns it now, he doesn’t care about this place, and it’s obvious,” Smith said.

We have left a message for Mike Kohan and emailed his retail group for comment and have not heard back.

While stores inside the mall remain affected by the outage, Dunham’s and Kohl’s are separately owned and are still open. Smith has also told us he spoke with mall management and the Westwood Mall will remain closed until Monday, April 1.

Last published: Mar 29, 2024 2:51:46 PM
Power remains shut off and the front doors locked at Westwood Mall in Marquette Township Friday, according to business representatives in the mall.

The front doors of the mall were closed beginning Wednesday after power was first shut off. It remained off Thursday as well. A business manager told TV6 Friday morning around 9:30 a.m. they would know by 11 a.m. if power would remain off or if the mall would open. However, by 11:40, a business representative in the mall said power had still not been restored and there had been no word on the rest of the day.

While the stores inside the mall await that answer, some stores with outdoor entrances— Dunham’s and Kohl’s— remain open with power as they are not on the same power grid.

Representatives of multiple businesses in the mall told us the property owner failed to pay the electric bill. Business owners told TV6 Thursday this is not the first time and wanted to make it clear it is the property owner, not the manager, who is responsible for the bill.

Part of the mall was sold in February 2019 to Kohan Retail Investment Group (KRIG), owned by Michael Kohan, of New York. At the time, Westwood Mall’s then-manager told TV6 the belief was that Kohan would provide necessary capital to revitalize the mall.

KRIG’s website boasts a plan “to invest in local communities by purchasing shopping centers and working with local employees to revitalize the malls and envision a new future for them.”

TV6 has emailed and left a message for Kohan asking about the electric bill and plans for the mall overall, but has not yet heard back. TV6 also tried to contact the Marquette Board of Light and Power via email and phone, but offices are closed Friday for the holiday.




View: https://www.youtube.com/watch?v=9z_sbsNfGt0

RT 16 minutes


Made Dan's podcast yesterday. Local mall in my general location.
 

Hfcomms

EN66iq
In Dan's video he reported another mall doing the same thing. And these people here aren't even able to pay the property taxes either. This particular mall has two anchor stores one is a Dunham's sports and the other is a Kohl's department store but in the rest of the mall only maybe 20% of the spaces are rented so the mall owner isn't bringing in enough to pay the mortgage I'm assuming. Soon to be replayed around the country. Commercial Real Estate is a mess and won't be getting much better going forward.
 

Illini Warrior

Illini Warrior
must not be a lawyer's office in the Mall - when there's a major default like that >> its easy as hell to get a court ordered escrowing of the utilities part of the tenant's monthly rental payment ....

out of state owner and all the possible victims are local >>> single day for a good lawyer
 

Hfcomms

EN66iq
The Westwood Mall was sold in 2019 to Kohan Retail Investment Group, owned by Mike Kohan of New York. Kohan owns 52 mall sites around the country and his website claims to to invest in local communities by purchasing shopping centers and working to revitalize them.

But other malls owned by Kohan have run into similar problems. In November, the Marshalltown Mall in Iowa reportedly closed after an electric bill was left unpaid by Kohan for 10 months, according to WHO13 in Iowa.



Want to bet this guy is close to bankruptcy and many of his other 52 malls are in the same fix?
 

greysage

On The Level
The owners of the Axe Range and Rampage Room need to lay off their employees and commence shut down. There's no way this guy is going to pay the bill at this point. The investment-group is likely already working a plan to write off the losses and debt, so the property can be turned into higher density housing of town homes, condos and apartments.
 

summerthyme

Administrator
_______________
In Dan's video he reported another mall doing the same thing. And these people here aren't even able to pay the property taxes either. This particular mall has two anchor stores one is a Dunham's sports and the other is a Kohl's department store but in the rest of the mall only maybe 20% of the spaces are rented so the mall owner isn't bringing in enough to pay the mortgage I'm assuming. Soon to be replayed around the country. Commercial Real Estate is a mess and won't be getting much better going forward.
I wonder how many will either be remodeled into some type of living quarters for illegals, or just unofficially taken over by them squatting?

Summerthyme
 

Southside

Has No Life - Lives on TB
The commercial real estate in the western world is in a world of hurt.
And, for the life of me, I can't see where the rescue is going to come from.
 

Hfcomms

EN66iq
I wonder how many will either be remodeled into some type of living quarters for illegals, or just unofficially taken over by them squatting?

Summerthyme

One of the channels I follow has a guy that knows a lot about commercial real estate. He says for a lot of places it simply can't be done. One of the biggest issues is zoning. A lot of commercial properties are not zoned for multi-family units and there are a lot of hoops to jump through.

Another issue is since these properties are not designed for multiple living spaces that the amount of money it costs to repurpose buildings like this don't make economic sense let alone getting a bank to loan you money for something like this. He said in many instances it's cheaper if you want to do it to tear down the existing structure and start over from scratch. And then it has to make sense economically from the amount of rent you expect to get and in the current environment the numbers don't add up.
 

summerthyme

Administrator
_______________
So, essentially, many of them will become squatters paradises and drug malls, since most of the failing ones are in areas which are vastly overbuilt, and economically challenged. Great.

Summerthyme
 

West

Senior
All the local, state and fed government needs to do is increase minimum wage, and more costly mandated regulations/insurances on employers.

Then when all private sector jobs are gone, the governments can say see........capitalism failed you!

And most voters will agree.
 
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