Sears Closing A Concern Amid Moorestown Mall Development Talks

MOORESTOWN, NJ — Following the news that the Sears at the Moorestown Mall is closing, a question arose during Monday night’s council meeting: what will happen next with that piece of land?

The question came up as council continued its discussion of establishing mixed-use overlay districts for the Moorestown Mall and the K-Mart shopping center.

Council unanimously approved the proposal on introduction on Jan. 27. A little more than a week later, Sears owner Transformco announced that it would close several stores, including the one at the Moorestown Mall.

Transformco is a privately held company formed by Edward Lampert to manage the Sears properties. After Sears filed for bankruptcy in October 2018, Lampert purchased its remaining assets for $5.2 billion. Transformco formed in February 2019, and announced the closings last week.

On Monday night, Councilman Mike Locatell expressed concern that Transformco owned the property, would be able to tear down the existing building and replace it with something outside the purview of the proposal.

“We have a vision for redevelopment at the mall,” Locatell said. “You want one person running that vision.”

Daniel Herman, the Senior Vice President for Pennsylvania Real Estate Investment Trust (PREIT), was in attendance. He said the specifics of the lease agreement can’t be discussed in public.

“Your concern is not shared by us,” Herman said. “There is a valid lease in place that describes what they can and can’t do with the property, but we own the underlying real estate.”

On Tuesday morning, Locatell told Patch he was satisfied with that response.

The proposal addresses the township’s unmet need to satisfy its affordable housing obligations. Twenty percent of any residential development that would be built in the area would have to be set aside for affordable housing. The plan has no impact on any other developments being built in the township to satisfy the obligation, Mayor Nicole Gillespie said.

Medical offices and a possible hotel have been discussed as part of the plan. They are currently not permitted. Council may ask the planning board to explore part of the area as a possible area in need of redevelopment, Gillespie told Patch Tuesday morning. If 50 percent of a mall is vacant, it qualifies. The closings of Sears and Lord & Taylor may put the Moorestown Mall in that category, Gillespie said.

PREIT’s recent developments have moved the current mall in the direction of a dining destination with the addition of businesses such as Joe Italiano's Maplewood, Hash House A Go Go and The Yard House. The group has suggestions for how to handle the property, and officials have said those plans look great.

The township is considering PREIT’s suggestions, as well as technical suggestions submitted in a letter from Planning Board Planner Michelle Taylor. The planning board found the proposal to be consistent with the township’s master plan at its meeting last week.

Former Planning Board Chair Douglas Maute pointed out during the public hearing that the public doesn’t know what changes the township is considering, and it "concerns him." Council didn't receive letters from PREIT or Taylor until Friday.

Council agreed to put off a decision until the Feb. 24 meeting, at which time the public hearing will continue before a final vote is taken.

A vote must be taken at that time so the township has the plan in place before its affordable hearing compliance hearing on March 11.

In the interim, council will discuss the suggested changes in Taylor’s letter in a closed session meeting, and those proposed changes will be posted for the public to see before the public meeting. The date for the closed session meeting has not yet been announced.

Suggested changes that don’t fundamentally impact the overall proposal may be adopted. Changes that qualify as substantial changes would have to be considered at a later date, officials said.