The owner of a closed Sears store in Michigan is asking a judge to stop the adjacent shopping center's demolition, alleging that the city and the mall violated property rights.
Why It Matters
Attorneys for Lakeside Circle Holdings argue that the demolition of Lakeside Mall in Sterling Heights would destroy a wall shared by the mall and the closed Sears store, "leaving the Sears building unusable and open to the elements."
Sears was the largest retailer in the U.S. throughout the 1980s, but after filing for bankruptcy in 2018, only eight locations remain open.
What To Know
A 62-page complaint was filed in Macomb County Circuit Court against the city of Sterling Heights and Lakeside Mall owner Out of the Box (OOTB) Ventures.
The lawsuit alleges that the city announced demolition plans for the mall for the end of 2025 and "falsely" stated Lakeside Circle had consented.
The plaintiff's attorneys said Lakeside Circle "has not been consulted about this demolition, much less consented to it."
Despite this, various city officials made statements that "misrepresented" Lakeside Circle's stance on the demolition, according to the complaint.
The lawsuit alleges that the city is violating Lakeside Circle's rights in an effort to "transform the Lakeside Mall property into a new development with significantly higher tax revenues."
Lakeside Mall closed in July. Lakeside Circle purchased the Sears building in 2022, four years after the store closed.
The demolition of the mall is part of a yearslong $1 billion redevelopment plan. The plan involves establishing a City Center consisting of offices, apartments, retail space, a hotel, restaurants and more.
The owners of the Sears store also have a plan for the shuttered retail space, according to the lawsuit. Lakeside Circle signed a letter of intent with a potential tenant, which operated a go-kart and mini-bike facility, which also offered axe-throwing, virtual reality games and other activities.
The lawsuit alleges that the tenant backed out after hearing about OOTB's plans to demolish the building.
Attorneys for Lakeside OOTB Ventures told The Detroit News that the mall owners view the lawsuit as "entirely baseless and without merit."
What People Are Saying
Bernard Fuhs, attorney for OOTB, in a statement to The Detroit News: "Given the positive impact that our client is proposing to make with this much needed and long-desired redevelopment, which will take a mall well past its useful life and transform it into a vibrant city center, our client was extremely surprised and dismayed when the lawsuit was filed."
Melanie Davis, community relations director for Sterling Heights, in a statement to The Detroit News: "The Lakeside City Center development, years in the making, has followed a clear and transparent process. City leaders have had several discussions with Lakeside Circle Holdings and have been open and interested in hearing their ideas for the use and potential redevelopment of the separate Sears site. To date, they have not provided any concrete plans for review or consideration."
What Happens Next
Circuit Judge Richard Caretti is presiding over the case. An initial business court conference is scheduled for April 2.
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Jenna Sundel is a Newsweek reporter based in New Jersey. Her focus is reporting on breaking news. She has in-depth ... Read more