Lowes Foods sues Burroughs and Chapin over construction of new P - WMBFNews.com, Myrtle Beach/Florence SC, Weather

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Lowes Foods sues Burroughs and Chapin over construction of new Publix

(Source: Lowes Foods) (Source: Lowes Foods)

MYRTLE BEACH, SC (WMBF) - According to court documents, grocery chain Lowes Foods filed a federal lawsuit against Myrtle Beach development company Burroughs and Chapin on February 4. The lawsuit claims the developer failed to honor the lease agreement by allowing Publix, a competing grocery store chain, to build a store less than a mile away from its Grand Dunes location. 
 
In the paperwork obtained by WMBF, lawyers for Lowes said the lease between the two companies, which originated in September 2008, was to be in effect for 20 years. 
 
Lowes claims the lease agreement would prevent a competing grocery store to open within two miles of the Lowes at on Cipriana Drive, as part of a “radius restriction” agreement in the lease. 
 
B&C disagreed that the Publix project violated the lease because the property is now owned by LStar Management, according to court papers filed by Lowes. 
 
Lowes requested a jury trial and asked that the lease with B&C be voided. 
 
Part of the original deal included a “four-star” project that would complement Grande Dunes.  Lowes also agreed to pay rent of $71,000 a month plus one percent of sales above $85.4 million. 
 
B&C sold a part of its Grand Dunes holdings to LStar in December 2013, documents state. The sale also included a parcel at U.S. 17 bypass and 82nd Ave. N., previously owned by Myrtle Beach Farms. 
 
LStar is in the process of developing the parcel that will be occupied by a 45,000-square foot Publix. 
 
The lawsuit claims this construction would cause direct competition with Lowes, which the lease was intended to prohibit in the agreement. The lawsuit claims the company’s loss exceeds $75,000 of interests and costs. 

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