Illinois Star Centre Mall files lawsuit against Marion - WSIL-TV 3 Southern Illinois

Illinois Star Centre Mall files lawsuit against Marion

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MARION -- The owners of the Illinois Star Centre Mall make some very serious charges against city leaders in a bankruptcy filing.

On Monday attorneys for the owners of Illinois Star Centre Mall filed an adversary complaint against the City of Marion in United States Bankruptcy Court for the Southern District of Illinois.

Illinois Star Centre, LLC, which owns the mall, filed for bankruptcy in early May.

The complaint seeks an equitable accounting from Marion relating to the financing of the mall and surrounding area.

It says the city has refused to provide financial information to determine what, if anything, is still owed on bonds issued for the development of the mall and surrounding area.

The complaint says the mall needs to provide those documents to a potential buyer.

In a release, Illinois Star Centre's attorney Paul Slocomb says that a review of available documents reveal potential fraud by the city.

News 3 left a voicemail with Slocomb who said he was traveling and would respond in a few days.

The complaint claims that that Marion owes Illinois Star Centre a refund for overpayments on a bond issued for its development.

It says that from 1992 through 2016 more than 19 million dollars were paid on the bond, but city records show that just over 15 million dollars have been paid.

The complaint also alleges that there were transfers of several million dollars out of accounts designated to fund development of the mall and surrounding area and that the city unfairly burdened the Mall with tax liabilities for projects that benefited other surrounding businesses.

Marion city clerk Alice Rix said that city employees were told not to speak about the issue because it involves ongoing litigation against the city.

A call to City attorney Steve Green was not returned.

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