Chicago, IL, August 9, 2006--Lowe's has put 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 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 are they will pull out" unless the ordinance is vetoed.
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 were in the planning stages are now on hold because of the ordinance. Target Corp., has taken a similar stance on a list of planned stores in the city.
