Lowe’s closes store in Ocean Township due to cracks in floor.

From: Atlanticville GMNews on Internet
http://atlanticville.gmnews.com/news/2004/1222/Front_Page/014.html

Lowe’s will not reopen OT store
BY CHRISTINE VARNO
Staff Writer

OCEAN TOWNSHIP — The Lowe’s Companies Inc. announced on Dec. 17 that it will not reopen its retail store at its former location in the Seaview Square shopping center on Route 66.

The store originally opened on March 19, 2003, and was closed temporarily on Feb. 27, 2004, “due to safety concerns caused by the settling of the building,” according to a Dec. 20 prepared statement by Lowe’s.

The property and building has been transferred to the landlord, Starwood Heller Seaview LLC, Edgewater.

“A number of evaluations have been ongoing in recent months and a resolution [to transfer the property] was met by both parties, Lowe’s and the landlord,” said Jennifer Smith, Lowe’s spokeswoman.

When asked why the store would not reopen she said she was “unable to get into greater detail” and would not comment on how much money Starwood offered Lowe’s, if any.

Starwood did not return a call for comment by deadline.

Mayor William Larkin said he anticipated that the store would not reopen and believes the company is using the stability of the building as an excuse to get out of town.

“My feeling is that they did a bad market study, which didn’t justify two [Lowe’s] stores in the area [one in Ocean and one planned in Eatontown],” Larkin said. “They are using the problems with the building as an excuse to not reopen the store.”

The 15,000-square-foot building was constructed over the former site of a landfill and cracks developed in the floor of the building as a result of the settlement of the landfill beneath the floor slab, according to a Lowe’s statement.

The landlord was responsible for preparing the ground beneath the floor slab and Starwood issued a long-term warranty to Lowe’s against major defects, according to the statement.

The problems began the summer after the building opened, Smith said in an interview in June and added at that time that Lowe’s had intended to reopen at the same location, but did not offer a timeline.

At the time of the store’s closing, the property owners were notified by Lowe’s of the problems that needed repair, and Starwood agreed to work with Lowe’s to investigate the settlement, Smith said in June.

She said it would be a long and complicated process.

The approximately 146 employees at the store’s Ocean location were transferred to nearby stores when it closed last Winter, Smith said.

“Lowe’s will continue to serve its Ocean Township customers at nearby stores in Brick Township [approximately five miles away], Howell, Holmdel and Tom’s River,” the company said in a statement.

With fiscal year 2003 sales of $30.8 billion, Lowe’s said it serves approximately 10 million customers per week at more than 1,050 home improvement stores in 46 states.