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When will the fate of the Town Center Mall be decided? It's impossible to tell, said the mall's receiver.
"The result is not only unknown, it's unknowable," according to James H. Barron, the court-appointed receiver of the Town Center.
However, Barron said that the Town Center will continue to operate as normal and that the holiday shopping season at the mall will not be impaired by the court battles. Furthermore, he said, it's a question of when, not if, the city will be paid the approximately $700,000 owed to them in unpaid taxes by Sunnyvale LLC, the holding company of American Mall Properties.
The Town Center has become the center of a number of complicated legal battles, as both the city of Sunnyvale and the primary bond-holder, the San Diego National Bank, have begun foreclosure proceedings against Sunnyvale LLC. In the meantime, Barron acts as the mall's "generic owner" during the protracted legal process. The courts and banks are trying to sort out who will end up owning most of the mall and determine who will pay off the debt owed to the bondholders and the city.
Barron addressed the Sunnyvale City Council during a Sept. 17 study session in order to bring the city up to speed on the state of affairs with the mall. He explained that any attempts to assign an arbitrary end point would be futile.
"This is a process," Barron said. "There's no date on which this will all be done. Many, many things can happen at this point."
Of the possible outcomes, each has many different "permutations."
"It's like shifting sands," Barron said.
One thing that could halt the foreclosure proceeding is if the holding company files for bankruptcy, which Barron said is a "distinct possibility." Seeking Chapter 11 protection could delay the foreclosure process for a couple of months at the most.
The mall was set to go up for sale on Sept. 18, but the court delayed the sale after Sunnyvale LLC filed for an injunction. The injunction hearing was scheduled for Sept. 25.
Barron, who has been through similar court battles as a receiver, said he expects the case to be resolved in a few months.
"I don't think it will be very long," he said.
As the receiver, Barron said, it's his responsibility to maintain the Town Center. He added that the mall, which has recently been in a poor state of repair, is in "much better shape now."
He added that the mall is considerably cleaner than it was months ago. The lack of cleanliness in downtown Sunnyvale, including the Town Center, received considerable attention from the council in August.
Still, Barron stresses that the city and the residents need to be patient, and that both the lenders and the developers want to get the problem solved.
"Being anxious and trying to move forward isn't going to help any," Barron said. "This thing moves on its own tracks. We have to wait, be patient and grind it out."
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