Aug 9, 2006 11:29 am US/Central
Lowe's Holds Up Store Plans Over Big Box Ordinance
Home Improvement Chain May Pull Out If Ordinance Is Not Vetoed
CHICAGO (AP) ―
Lowe's has put its plans for two home-improvement centers in Chicago on hold in the wake of the city's new "big-box" minimum-wage ordinance, following similar steps taken by Wal-Mart and Target, a developer and alderman said.
David Katz of Northbrook-based A&R Management Inc., which manages a shopping center where one of the Lowe's stores was to open, confirmed on Tuesday that officials at the Mooresville, N.C.-based company have postponed signing a lease.
"They are waiting to see if (Mayor Richard Daley) will veto the ordinance," he said, adding that "chances they will pull out" unless the ordinance is vetoed.
Lowe's spokeswoman Jennifer Smith would not discuss the company's development plans Wednesday but said they were "very disappointed" with the city's passage of the big-box ordinance.
"The ordinance is something that will weigh very heavily in our consideration of new store sites in the city of Chicago," she said.
Of the five Lowe's stores that have been built in Cook County since 2003, only one is in Chicago, she said.
The City Council approved the big-box ordinance 35-14 on July 26, ignoring the protests of Daley and aldermen who represent some of the city's poorest neighborhoods, all who said the measure will drive businesses to surrounding suburbs.
Daley could veto the measure, which requires major retailers to pay at least $10 an hour plus $3 in fringe benefits by mid-2010, but the mayor would need two aldermen to drop their support in order to avoid having his veto overridden.
A South Side alderman whose district includes the location where Lowe's wanted to open the other store said the ordinance caused company officials to change their minds.
"They now want to wait and see what happens," said Alderman Howard Brookins Jr.
Officials of Wal-Mart Stores have said that as many as 20 new outlets in Chicago that had been in the planning stages were on hold because of the ordinance. Target Corp. has taken a similar stance on a list of planned stores in the city.
(© 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
