MASON CITY – The owner of Mason City’s Southbridge Mall is being called on the carpet with a lawsuit for not paying property taxes on the beleaguered structure.
Southbridge Mall Realty Holding, LLC, incorporated in Ohio but owned by Kohan Retail Investment Group in Great Neck, New York, (owned by Tehran Kohansieh AKA Mike Kohan or AKA Mike Kohen) is being sued by the Cerro Gordo county treasurer. Records show Southbridge Mall Realty Holding, LLC, owes tens-of-thousands of dollars in unpaid property taxes, even as the City of Mason City looks to install $12 million arena and $1+ million music pavilion in the structure.
According to a statement from the Cerro Gordo county courthouse:
Pat Wright, Treasurer
On my behalf as County Treasurer, a civil lawsuit was filed against Southbridge Mall Realty Holding, LLC for the delinquent real estate taxes and interest on the buildings and improvements known locally as Southbridge Mall.Prior to Fiscal Year 2017-2018, the Southbridge Mall buildings and improvements were taxed as separate parcels from the land on which the building and improvements lie.
Tax parcels consisting of building and improvements only are not allowed to be sold at the annual tax sale under Iowa law.
My office has worked diligently over the past 18 months to collect the real estate taxes on the mall parcels. Southbridge Mall Realty Holding, LLC has paid the real estate taxes against the land parcels which were due in 2017 and the spring of 2018 since it took title to Southbridge Mall in the fall of 2016.
The decision to file a lawsuit against a property owner is not one that my office makes lightly. However, my office has no other avenue to collect the unpaid taxes against the building parcels except through the civil action.
On advice of counsel, my office will not have further comment on this matter due to the pending litigation.
Patricia J. Wright,
Cerro Gordo County Treasurer
On any overdue amount, late interest accrues at the rate of 1.5% per month (rounded to nearest dollar) according to the Iowa Treasurer’s website.
