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Photo by LARRY McCORMACK / THE TENNESSEAN |
Interstate Restoration LLC is suing the owners of Opry Mills mall for $3.6 million, saying its company wasn't fully paid for water removal and cleaning work it did after May's flooding at the still-closed shopping center.
The Texas-based restoration firm said it was not paid for labor, materials and services associated with water extraction and cleanup work at the mall through October, according to a complaint filed in Davidson County Chancery Court.
The company is suing Simon Property Group, along with Opry Mills Mall Limited Partnership and a German bank that acts as its commercial lender, for breach of contract as well as intentional misrepresentation and conspiracy to commit fraud.
The legal complaint says the mall knew it was "under-insured for the property damage sustained because of the flood, and thereafter knew that an insufficient amount of insurance proceeds would be available to pay Interstate for the work" performed in a second phase of cleanup.It also says the mall's owners knew they "were so severely under-capitalized that these entities did not have the ability to pay Interstate."
Simon Property Group issued a statement saying, "Simon Property Group looks forward to defending ourselves vigorously since we believe this lawsuit lacks merit. In particular, the spurious allegations of misrepresentation and fraud are unfounded and represent the worst kind of overreaching by plaintiffs and their attorneys."
The mall's owners are already tied up in a multimillion-dollar lawsuit involving their insurance coverage. That case isn't scheduled for trial until February 2012.
The owners are suing their insurers over a remaining $150 million in insurance proceeds that the mall says it needs to complete repairs. The insurers argue that the coverage is limited to $50 million already paid out.
Interstate's lawsuit said its work at the mall was divided into a first phase that included removing water, demolition and the drying of spaces, and a second phase that included other cleaning work. Simon Property approved the restoration firm's pricing and charges for Phase II on or about July 28, according to the Chancery Court complaint.
What a mess and the the place had the highest turn over of any mall in the state. 38% in any company that would be a death sentance. I guess that is the reason the mall was sold three times in 8 years. The last time to Simon and another investor that rumors have it has gone belly up during the aftermath of the flood leaving Simon holding the tab. If Simon had really been sold on the mall to start with they would have purchased it outright in full. Now they are just looking for money and a way out.
ReplyDeleteI hear that the insurance company's attorneys are set to tie this up in court with additionalclaims if they loose that the water was released to soon by the Dams. That will be another year on top of the year they are waiting now.
ReplyDeleteThere do have to dams in trouble now Center Hill and the lager Wolfcreek holds back more water than any other Dam in the south east USA and if it fails, and they say it could due to the leaks. It would make the flood in may look like childs play. Given the fact that the area flooded in the 70,s closing the then very successful Theme Park, and now again in May of last year......I would not build a fishing lake on the site. It seems to be a hard place to turn a profit, and with all that's going on down town why would anyone go to the Opryland area? The new convention center, Hard Rock cafe, Hockey, Football,The real Opry House, Music Row, The Wild Horse Soloon, countless food and music spots every where. Any thing you want. Opry Mill has an over priced Hotel, Cooter's ole busted up Duke's car and Willy's old house of wax. No if you stay there you still have to go into Nashville to do anything.
ReplyDeleteI agree! Why would a tourist go to the Opryland Hotel more than once. You could see and do everything there in one day. Even when the mall was there two days and you looking for something to do. Downtown is it for the Nashville area. I would stop at one of the malls on the interstate on the way in or out of town anyway. Opryland is off the beaten path. With so little to do over there I'd save my gas money. Dolly Wood area or downtown Nashville that is all Tenn. Has.
ReplyDeleteMaybe they could hold the trials (all of them)on the site of the mall. That would be one way to get a crowd. I think most people have moved on and everyone seems to be doing just fine. The mall always had new shops, yet that was due to so many closing year after year. I remember on the fifth year the mall was there a lot of stores closed. There were areas where both sides of the mall had 4 or more stores closed side by side. There has to be a reason for the massive turn over and four owners in 10 years. If it's making money you don't sell it. You expand..Right?
ReplyDeleteWe will start the biding; can I get a five dollar, ten, five, who will give me a ten looking for a ten dollar , ten dollar, ten dollar bill.
ReplyDeleteTwo Dollars.
ReplyDeleteO K now we have 17 insurance companies in one law suit, a restoration company in two addtional ones, Barne's & Nobel, and I hear most of the others shops that signed 5 or 10 year leases had thier leases come due the same year the Flood happen because the mall opened in 2000. The New Convention Center is opening down town A theme park has purchased 750 acres in Spring Hill, people are moving on, the area is going to be left behind anyway. When it had a theme park ( The only Country Music one in the world ). It was a DESTINATION LOCATION. It had a great mall across from it, and the hotel. Every thing is moving to other areas. Even the Genral Jackson show boat only has one year left. I can't see how they can reserect this place now, and a year from now it will truly be to late. $5 gas, and all the rest.....!
ReplyDeleteOpryland so sad....you should have kept the Theme Park fools.
ReplyDeleteI remember when the Theme Park had famous country stars doing nightly concerts on their stages. That worked well. Like a mini Fan Fair. The when the mall coundn't make it they started having a few stars come into the foodcourt to sing. It almost screamed " Hey We Are In Troulbe" anyone want to come an see our attempt to save a sinking thug ship. R.I.P. WE have rap music playing in the hall way. Duck And Cover.
ReplyDeleteThat's right, Country Music. That's Nashville. Like it or not. and everytime to try to be something else it fails. Just like everytime a country star trys to mix it up with a rap star on a song they loose fans and popularlity. Bring the park back, OH I'm sorry I forgot, they are in Spring Hill! Gaylord Take you hotel with you when you go.
ReplyDeleteTHE OPRYLAND MALL WILL MAKE A COME BACK.. AS A WAREHOUSE.
ReplyDeleteGarlord got out of the Mall buisness as soon as they understood it was also costing them money. Lets see they couldn't make money on a one of a kind theme park that was known around the world, then they couldn't make money on a mall to replace it, the next thing you know they won't be able to make money on a hotel. Looks like a pattern to me.
ReplyDeleteWhen they built the mall the codes department made them raise the pad 15 feet before they would let them build on the land because of the river. Not in a flood zone? Lots of like with that one. It is not about the insurance money, there is no way to claim it was insured for floods. In fact the state has added an amendment after the flood that no new structures can be built in flood zone areas and the Opry area is on the map. That is a cop-out for the fact the area was never successful.
ReplyDeleteOpry Mills to re-open in 2012 - see latest press release:
ReplyDeletehttp://factoryoutletinsiders.blogspot.com/2011/04/opry-mills-will-reopen-in-2012.html
The bank that Sinom got to cover the loan for the mall is in trouble it looks like. So don't get to excited. Heleba Bank out of Germany. Look up "Heleba Bank fails stress test". Lots out post on this. The mall is also not going to have a big Grand Opening. The stores are going to open as they can. So at first you could go the the mall and walk half way around an empty mall. This sounds like a desprate attempt to do want ever they can to get it ready to sell. They can't sell it empty, no one would want it. And because the shop owner have to build out their own space Simon stands to make the mall more viable to sell if the spaces are built out. Don't beleave this area has what it takes to be viable in the new Nashville Market with all that is going on downtown and in the new lifestyle centers. Even a Theme Park that made it for 26 years couldn't save the area now. It will never be what it was. Many store are still trying to get out of their leases as I type. Even with the news, (News They Had Weeks Ago).
ReplyDeleteMaybe they could film "East World" there. Like "West World". It needs to be famous for something.. It is! It's the only mall located in a flood zone. Owned by a company that really don't want to invest in it, and has a loan from a German bank that may be on the edge of failing. That is day dreaming at it's best.
ReplyDeleteMayor and Governor speak in video about Opry Mills opening.
ReplyDeletehttp://factoryoutletinsiders.blogspot.com/2011/04/mayor-and-governor-speak-about-opry.html