Months after a buyer announced plans to revitalize the Great Northern Mall site, a lawsuit filed in State Supreme Court alleges that the sale has stalled and that the seller is not fulfilling the terms of the agreement.
Hart Lyman company agreed to purchase the mall for $9 million in May 2022, with the intention of transforming it into a lifestyle center featuring luxury apartments, townhouses, retail stores, and restaurants. The development was seen as a potential boost for the region, particularly after Micron announced its intentions to invest in the White Pine Commerce Park in Clay in the fall.
However, according to the lawsuit, the current owner of the mall, Mike Kohan and his company, are repeatedly failing to meet the conditions of the sale. The lawsuit states that the Hart Lyman company has already provided $125,000 towards the sale. In return, Kohan Retail Investment Group was required to ensure there were no legal actions or proceedings against the property, no one else could lease the property, the property was in “broom-clean” condition, all leases and tenants’ rights were sorted out before the closing, and that the property met all local ordinances and codes.
The lawsuit claims that Kohan Retail Investment Group did not meet many of these obligations by the December deadline. In the beginning of December, the Plaintiff’s counsel informed the seller’s counsel of “significant amount of mold/water damage” that could cause issues with cleaning up. By December 27, the Plaintiff’s counsel received another email from the seller’s counsel advising that there was “still a significant amount of junk” in the property that would not be removed until after closing. Additionally, the sprinkler system allegedly froze and burst before the end of the year, and required full replacement, the damage was not cleared by the closing date.
The lawsuit seeks for a judge to intervene in the stalled-out agreement and take into consideration the $125,000 investment made so far. The parties were reached out for further comment, the New York Times will update the story as more information becomes available.
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