The owner of the Orchards Mall is tempting fate again, facing foreclosure by the Berrien County Treasurer if he doesn’t pay at least $275,000 of the more than half-a-million dollars he owes in back taxes by Monday’s tax deadline.
Berrien County Treasurer Bret Witkowski says that Mike Kohan did call his office last week seeking a payment plan similar to what Witkowski has offered to homeowners and business enterprises trying to save their properties from being foreclosed upon and taken over by the County. Nevertheless, Witkowski denied him access to a payment plan based on his long-running history of lack of payment, and blatantly ignoring warnings and appeals for finding a solution to the troubled shopping center.
Witkowski says that Kohan also called around to others in the treasurer’s office yesterday asking a series of questions, and he’s not sure what the man is planning on doing at this juncture. Kohan’s development company currently owes in excess of $600,000, and at least $275,000 of that must be paid by next Monday, April 2nd, 2018 to stem foreclosure.
It wasn’t until the closing hours of his window of opportunity last year that Kohan settled enough of his unpaid tax bill to avoid foreclosure. On March 31st of 2017 the Berrien County Treasurer received $140,000 of what was then a $532,000 unpaid tax bill. That was sufficient to fully redeem his 2014 tax bill. He still owes for 2015, 2016, and 2017 according to county tax records.
The more than 625,000 square foot center has been in arrears on property taxes ever since Kohan’s Retail Investment Group out of Great Neck, New York purchased it nearly four years ago. The mall was built 39 years ago in 1979.
Kohan has made a practice of buying aging, under-performing malls, retaining national retail anchors, luring small and medium-sized tenants, and filling large vacancies by leasing space for social gatherings, such as festivals, fund-raising events and concerts.
His plan to retain national retail anchors here took a huge hit when Carson’s announced this winter that they would be closing up shop and that store is currently in the midst of a store closing clearance sale. Additionally, GNC Nutrition Center down the hall from Carson’s entrance is nearing the end of its run and has already erected pylon signage at its intended new site next to Batteries + Bulbs on the front lot of the Fairplain Plaza. Jimmy Jazz, a clothing store inside the mall has also reportedly signed a deal to take the Fairplain Plaza space that housed rue 21 until last fall. The Lormax Stern site map online already shows that space designated as Jimmy Jazz.
Kohan purchased the Orchards Mall in December of 2014 from Sequoia Investments of Eureka, California for an undisclosed price. At the time of his purchase, the Benton Township property marked the 14th center in his investment portfolio. The 60-acre mall site in Benton Charter Township will be down to one major anchor in the form of J.C. Penney when Carson’s departs this spring. Stay tuned.
