Perkins Rowe chilled water fight still hot

Perkins Rowe may be headed for the auction block, but a thermal battle over chilled water rages on. U.S. District Judge James Brady is reviewing multiple motions for summary judgment in Central Facilities Operating Co.’s lawsuit against Texas-based Cinemark involving $434,469.66 in unpaid bills. The company co-owned by Perkins Rowe developer Tommy Spinosa and University of Alabama Coach Nick Saban supplies chilled water for air conditioning for the movie theater, as well as shops, restaurants, condominiums and apartments. Most of the pleadings in Baton Rouge federal court are sealed, but Central Facilities filed motions this week claiming that if it is forced to continue providing free chilled water to Cinemark indefinitely, the company “will soon go broke and no one in the Perkins Rowe development will receive chilled water.” Jones, Lang, LaSalle Americas, the court-appointed manager of the shopping center, has denied Central Facilities’ request to install a cut-off valve to terminate its supply of chilled water to Cinemark. According to the terms of the lease agreement, Cinemark would not be required to pay its lease if chilled water service ceases. Cinemark claims Central Facilities has charged above-market rates for chilled water and asks the court to apply the “standard public rate” of 8.1 cents per ton hour, which Central Facilities argues is “abusively low.” Ohio lender KeyBank National Association has been given the go-ahead to sell the development, appraised at more than $95 million. A foreclosure auction has been rescheduled for May. —Penny Font