SEMINOLE - In a small city that has big dreams for a mall that's considered its downtown, the news came as a shock.

A holding company is foreclosing on Seminole Mall's mortgage.

City officials just got wind of the suit, which was filed in February by JPMCC-CIBC13 Seminole Retail LLC. A hearing is scheduled next month.

"It was a bit of a surprise," Seminole City Manager Frank Edmunds said Wednesday.

Edmunds said he thinks the foreclosure might speed up redevelopment of the struggling mall by bringing the value more into line with current prices.

It's unlikely the city would buy the property, he said, because reviving the mall isn't the job of the government. But city officials are willing to work with anyone who does want to redevelop it.

It's unclear how much is owed on the mortgage. Jim Gibbs of Downtown Seminole LLC, the mall's owner, did not return a phone message asking for comment. Neither did Kerry Atkins of RMC Property Group, which handles leasing for the mall.

The foreclosure is more than news of another unfortunate victim of the bad economy. The approximately 39 acres are considered to be Seminole's downtown, an anchor to the rest of the city.

"It is such a significant piece of property to our city by location and by size," Edmunds said.

Not a day goes by that someone doesn't ask what's up with the mall, said Gretchen Cain Wells, chief of operations for the Seminole Chamber of Commerce. "It is the No. 1 question in Seminole."

The mall, at Park Boulevard and 113th Street N, was built in 1964 and renovated in 1990. Its 425,292 square feet are anchored by a Kmart and a Bealls department store. A CVS drugstore and a movie theater are also there. Although RMC's website says that 76.6 percent of the mall is leased, most of its 2,064 parking places are vacant and most days there are few shoppers.

Seminole Mall Acquisitions LLC bought the property in March 2002 for $20.7 million, then sold it to Downtown Seminole in December 2006 for $35.7 million. The mall then had an assessed value of about $21.2 million.

Anne Lindberg can be reached at alindberg@tampabay.com or (727) 893-8450.