The Palm Beach Mall, already facing a $55.4 million foreclosure suit, was hours away from having its electricity turned off this month because it had not paid its bill to Florida Power & Light, according to a city spokesman.
In addition, the troubled shopping center risked having its water service shut off because it has not paid West Palm Beach water bills, city spokesman Peter Robbins said.
The utilities problems come a month after the mall’s owner, Indianapolis-based Simon Pro-perty Group Inc., was sued in Palm Beach County Circuit Court for allegedly failing to make payments on millions of dollars in loans due to J.P. Morgan Chase Bank. The lawsuit was filed by ORIX Capital Markets LLC on behalf of Wells Fargo Bank, which is the trustee for the J.P. Morgan Chase Bank loans.
The foreclosure suit came after years of tenants being cleared out by Simon Property Group in anticipation of redevelopment. A stalled economy put those plans on hold but left the 42-year-old mall nearly empty.