The Menifee City Council on Wednesday instructed city staff to continue collection efforts against the owner of the failed Krikorian Theater project. This came after hearing testimony from George Krikorian’s attorney, who argued that Krikorian was not properly served notice of the demolition costs and that Krikorian is not liable for all of the reported costs.
In the latest chapter of a story that has lasted for years, council members instructed staff to pursue either a special assessment or lien on the Krikorian property in Menifee Town Center if Krikorian continues to refuse reimbursement of the $420,527 the City of Menifee was charged regarding the abatement of the partially constructed theater structure and retail pads.
Demolition began in January 2025 of the partially constructed theater and retail structures in Menifee Town Center — more than six years after construction began.
According to the staff report to council members, the cost breakdown is as follows:
Demolition cost: $251,652
Staff meetings and inspections: $10,339
Attorney’s fees: $158,536
Speaking during the public hearing on Wednesday, Krikorian attorney Andrea Contreras said her client contests the inclusion of attorney’s fees in the request for reimbursement.
“We did not receive an itemized list of the attorney’s fees, and I have no idea why it costs that much,” Contreras said.
Contreras cited a state law that requires attorney’s fees to be paid by the other party only if the city’s municipal code specifically states that. Acting Mayor Bob Karwin, himself an attorney, responded by quoting parts of the city’s code, which states that in seeking reimbursement for abatement costs, the city can recover “all costs incurred by the city in identifying, inspecting, and investigating violations.”
“Does the word ‘all’ exclude attorney’s fees?” Karwin asked.
Contreras continued to insist that the term “attorney’s fees” must be spelled out for it to be included.
In addition, Contreras claimed that Krikorian did not receive proper notice of the City’s request for reimbursement. According to attorney Noam Duzman, representing the City of Menifee, that notice was mailed on Nov. 17, 2025 and was received on Nov. 20. The City did not receive a response during the required 15 days (a Dec. 5 deadline), according to Duzman.
Contreras disputed the statement that such a notice was delivered via certified mail on the date reported by the city. When Duzman presented a receipt for the delivery and it was shown to Contreras, she claimed the receipt showed only that it “was delivered to the front desk or the mail room” and was not received by the proper personnel until days later.
Contreras also said that the issue of reimbursement cannot be considered at this time because of an ongoing lawsuit filed by Krikorian’s company for the project, Showprop Menifee LLC, against the City of Menifee in May 2024. In that lawsuit, Krikorian’s attorneys dispute the legal ruling that the City had authority to demolish the structures.
Contreras also argued that a September 2024 ruling by a Superior Court judge lifting a stay that had delayed the demolition did not establish the City of Menifee as the prevailing party in the dispute.
None of these arguments persuaded council members, who voted unanimously to instruct city staff to move ahead with either the special assessment or lien – with a recommendation on which of those options to take to be forthcoming.
“I am not persuaded that their argument is valid,” Karwin said.
The Kirkorian theater project was first officially announced in May 2014. Originally, Krikorian purchased property and began developing plans solely for an entertainment complex including 12 theater screens, a bowling alley, sports bar and family entertainment center. Within the next two years, he purchased additional property in Menifee Town Center to build retail buildings fronting Newport Road.
Krikorian broke ground for the theater in early 2019 but halted construction in April of 2020 at the start of the COVID-19 pandemic. Krikorian said he lost funding to resume construction. Additionally, he is involved in a lawsuit with contractors who maintain they were not paid for materials delivered to the site.
