We'll stay in Mundelein, Hobby Lobby says

The Hobby Lobby craft-store chain doesn't plan to shutter its Mundelein outlet, a corporate attorney said, contradicting comments village officials and a local landlord have made.

"The Mundelein store has operated profitably and there are no plans to close the store when the current lease term expires in 2012," said John Graham, the Oklahoma City-based company's assistant general counsel.

But Ron Boorstein, owner of the Oak Creek Plaza shopping center where the store has operated since 1999, stands by his statements that Hobby Lobby officials want to leave.

Boorstein doesn't own the Hobby Lobby building itself, but during a meeting earlier this year store officials told him they'd like to find a new home in the area, he said Monday.

"If they could get out of their lease today, they'd do it," Boorstein said.

Officials with the California company that owns the Hobby Lobby building, Sequoia Investments, couldn't be reached for comment.

The debate over the future of the store stems from an Oct. 8 village board discussion at which Boorstein said he wants to reshape the spacious property, which is on Route 60 east of Route 45, into an apartment and retail complex.

Boorstein told trustees the Hobby Lobby store and a Menards home-improvement store in the plaza plan to leave when their leases end.

Menards officials have publicized plans to relocate to a new store on Mundelein's northwest side. Hobby Lobby officials have made no such pronouncements.

In the weeks after the meeting, the Hobby Lobby store experienced a 20 percent drop in sales, Graham said. Hobby Lobby officials believe some customers stopped shopping at the store and placing framing orders out of fear the store would close before orders are completed.

That's not going to happen, Graham said.

"Hobby Lobby has additional options to renew the lease beyond 2012, and if the store is profitable, it will be inclined to exercise those options," he said.

That's good news for Mundelein officials.

"I'm delighted they're staying," Trustee Ray Semple said. "We love having them in Mundelein. It's a neat store."

Boorstein doesn't believe Graham, however. The company is pledging to stay put only to keep its customers, Boorstein alleged.

"I expect them to close that store," Boorstein said. "I'm very confident that when this lease ends, Hobby Lobby will find a way to serve the people they're currently serving in a location that's more suitable to them."