Questions about financial trouble involving CityPlace's mortgage surfaced Thursday.
A spokesperson for CityPlace denied that the development has been delinquent making mortgage payments, but in a statement did say they are talking with lenders to get more financial flexibility.
Some storefronts in the outdoor shopping and entertainment complex are vacant, and a number of establishments have come and gone over the last several years.
"We know that CityPlace has had its ups and downs. But it seems that all the pieces are in place now. A successful CityPlace is very important to us," manager of Palm Beach Hibiscus Bed and Breakfast Thomas Kastner said.
The bed and breakfast and restaurant is just one block away from CityPlace.
Kastner is hoping the new hotel next to the Palm Beach County Convention Center will increase business in the area by drawing in large conventions.
CityPlace released the following statement on Thursday:
“The CityPlace retail debt is not delinquent and remains current on its debt service payments. CityPlace Partners has proactively engaged the special servicer in an effort to seek flexibility from our lenders and ensure the long-term success of CityPlace. We have continued to significantly reinvest in the property and are seeking to realign the retail loan with the dramatic shift in economic conditions that have impacted the property. This request is specific to the retail loan at CityPlace.
CityPlace has revitalized West Palm Beach and not only employs thousands of local residents but generates tens of millions of dollars in tax revenue for the City and County and it is our sincere hope to continue discussions in good faith in an effort ensure the long-term success of CityPlace.”
