Arcade suing Town Center at Cobb after unpaid power bills led to brief closure

“I would imagine they’re making a good bit of money off the tenants, so I’m not really sure how they were unable to pay their bills,” Shane Starr, who owns Starrcade, told The Atlanta Journal-Constitution in a Friday interview.

Kohan Retail’s founder, Mike Kohan, did not respond to calls requesting comment.

The arcade makes $350 monthly utility payments, which are designated for the power bill and other services, according to a copy of a lease agreement included in court filings.

Starr wants to know where that money went, if not to pay the power bills that Georgia Power previously described as “highly delinquent,” leading to a temporary power shutoff.

The complaint asks the court to appoint a neutral third party to take control of the mall’s assets through receivership.

Last month, businesses and customers alike were stunned to see signs posted on the mall’s locked doors stating that the shopping center had closed due to “unforeseen circumstances.” Georgia Power said it had given the mall’s owner several months to find a solution to avoid shutting off the lights.

The power company said it restored service after the mall’s owners “met necessary requirements.” When the mall reopened, Kohan said the power bill was up to date and paid.

Starr’s attorney, Mitch Skandalakis, told the AJC that the mall owner has “essentially taken these people’s tenants money.”

“For him to interfere with those property rights by failing to pay the electricity bills, the water bills, etc., that they’re required to pay the company directly is inexcusable,” he said. “Because clearly, he’s taken their money and decided he’s just not going to pay those bills.”

The new suit is not where the mall’s financial troubles end. The New York-based company owed more than $1 million in mall property taxes that were due Oct. 15 that now includes late fees and interest, the AJC reported last month.

Cobb County plans to sell the tax lien at an auction scheduled in May if the taxes and penalties remain unpaid. Kohan said previously the back taxes would be paid soon. As of Friday, no payments had been made, and the total owed exceeds $1 million, according to tax records.

Starr’s business started four years ago in Woodstock as an arcade game repair service. Now, it also includes the Kennesaw mall arcade and repair jobs in Georgia, Florida and Mississippi, he said.

The most damaging part of the brief closure, Starr said, has been the public’s lost confidence in the mall and its businesses.

“Malls are already kind of struggling all over the U.S.,” he said. “So getting marked as this dead or dying mall really didn’t help business, not just for us, but for everybody in the mall.”

Starr and his 11 employees didn’t know how long they would be locked out of their space. The arcade game repair services also were disrupted for a week due to the sudden closure.

In taking legal action, Starr said he wants to protect his employees and is hoping to gain stability for his business and trust that the mall will operate in the tenants’ best interests.

“What I would really love is to be able to stay in Kennesaw — stay here, preferably, since we’ve invested a lot into this building and renovating this location," Starr said. “I’d love to see the mall succeed and not see all the tenants go running.”