Spring Hill Mall property taxes are $102,000 in arrears, which came as news to the CEO of the company that owns the shopping center and has the village presidents of West Dundee and Carpentersville concerned.
The mall, located on Route 72 land located in both villages, was purchased by Kohan Retail Investment Group in July 2021. Company founder/CEO Michael Kohan said Thursday he was not aware the first installment of the Kane County property tax bill, due June 1, had not been paid.
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“We’ll look into it,” Kohan said. He offered no additional comment.
West Dundee Village President Chris Nelson said the situation seems indicative of other problems they’ve learned the mall owners have had with other properties.
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“They are a professional organization and should be prepared to pay their taxes on time,” Nelson said. “This also seems to be a pattern with them and, given their track record, I am concerned about them paying future bills.”
Carpentersville Village President John Skillman said he was not happy about the debt not being paid. “This is distressing, and we hope it gets taken care of,” he said.
About three-quarters of Spring Hill Mall is located in West Dundee, and the rest in Carpentersville.
Kohan Retail Investment Group, based in Great Neck, New York, owns six parcels of mall property under the name Spring Hill Mall Realty Holding. Its tax bill of about $204,000 is divided into two installment payments, one due June 1 and the second Sept. 1.
Owners of other Spring Hill Mall property parcels, including the empty Sears and Macy’s anchor stores and the existing Kohl’s stores, are up to date on their property tax payments, according to the Kane County Treasurer’s Office.
Nelson said it’s his understanding, based on published reports, that the company has had problems paying bills at the other malls it owns or has owned across the country. Being in arrears in Kane County could be seen as part of a pattern, he said.
“It’s a continuation of a pattern that portends disinvestment,” Nelson said.
He cited reports by the Wichita Falls Times Record News and real estate publication The Real Deal that document instances involving Kohan-owned malls in which hundreds of thousands of dollars in taxes or bills had not been paid.
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The Chicago Tribune reported in November 2014 that a judge ordered Kohan-owned Lincoln Mall in far south suburban Matteson to close because the property had fallen into a state disrepair. The company had not paid more than $10 million in fines and back taxes, according to reports.
The Kohan Retail Investment Group website lists 55 retail properties across the country in its portfolio. It’s known for buying distressed malls at deep discounted prices, Nelson said.
Kohan paid $1.9 million for the 42-year-old Spring Hill Mall, Nelson said, with the price including the still-open Cinemark theater space and the former Carson’s anchor store.
The mall currently is only about 35% occupied, he said. The only remaining anchor tenant is Kohl’s.
“All this means things are most likely going to get worse before they get better for the mall property,” Nelson said. “Kohan’s strategy remains unclear. It seems the time has passed for Spring Hill to be a viable shopping center. It’s not recoverable.”
Making it more frustrating, he said, is there are parties that have expressed interest in buying the property, but Kohan has given the village no indication it is willing to sell.
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Mike Danahey is a freelance reporter for The Courier-News.
