Bank 'reviewing options' for Smart & Final property

The building designed as a Smart & Final on Newport Road remains vacant in a lot overgrown with weeds. File photo

By Doug Spoon, Editor

The status of the property originally planned as a Smart & Final store in Menifee remains uncertain, although city officials say they are doing everything possible to help find a new tenant for the foreclosed property.

The future of the property on Newport Road behind Applebee's restaurant in Newport Towne Square will be determined by the bank that foreclosed on it. Triple Net Financial, a special purpose finance company based in Texas, foreclosed on the property after a series of lawsuits were filed by subcontractors against the developer, PRP Menifee, claiming nonpayment for services.

The building, mostly completed, is surrounded by weeds and the skeleton of a parking lot. Work stopped more than a year ago as contractors walked off the job and filed lawsuits in Riverside Superior Court.

City Community Development Director Cheryl Kitzerow said at last week's Menifee Planning Commission meeting that the bank is "reviewing their options" regarding the property at Newport Towne Square.

"There is nothing new to report regarding the construction or entitlement," Kitzerow said in response to a question from commissioner Robert Karwin. "We are doing all we can to help."

Five lawsuits were originally filed against PRP Menifee. According to court records, four of those suits have been either vacated or dismissed. The one active case was filed by Kirkley Corporation, the project's main contractor, against PRP Menifee and several limited partnerships associated with PRP Menifee in the financing of the project. In that suit, filed on March 26, 2019, Kirkley alleges that PRP Menifee is "insolvent and unable to pay Kirkley's past-due payment applications ... and is further unable to pay for completion of the project."

On Jan. 27, lawyers for PRP Menifee filed a case management statement in advance of a Feb. 11 case management conference. In that document, according to court records, PRP Menifee contends "that the cross-defendants have breached the loan agreements at issue and intentionally interfered with PRP Menifee LLC's contractual relationship with Smart & Final."

PRP Menifee's cross complaint contains causes of action for breach of contract; intentional interference with contactual relations; implied breach of contract; trade libel; and declaratory relief.

PRP Menifee did not respond to a request for comment. The Feb. 11 hearing was continued to March 26.

Menifee Economic Development Director Gina Gonzalez recently told Menifee 24/7 that Smart & Final remains interested in coming to Menifee. A spokesperson for Smart & Final said in an email to Menifee 24/7 that they "hope for the chance to serve the Menifee community in the future."

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