Lawsuit confirms a Bluffton Fresh Market. But it might be evicted before it can open

For nearly two years, The Fresh Market has refused to confirm whether it has plans to open at the intersection of U.S. 278 and Burnt Church Road in Bluffton, however a lawsuit filed Monday in Beaufort County by the upscale grocery store chain against the developer of the shopping plaza shows that this is indeed the case.

In the suit, Fresh Market says Jaz Bluffton LLC threatened to evict the store last month, claiming that Fresh Market has not been paying its rent or fulfilling conditions of its lease, such keeping up the property.

Fresh Market says the developer has not been paying the store its agreed-upon tenant improvement allowance and is asking that a judge declare the developer to be in default of the lease.

Both the store and attorneys for Jaz declined to comment when contacted Thursday.

Jaz Bluffton announced in March 2016 that Fresh Market, which has a location on Hilton Head Island, would be an anchor tenant for the strip mall, but the store itself has never acknowledged this publicly.

Other businesses announced by Jaz at that time — Hobby Lobby, PGA Tour Superstore and Aspen Dental — have long since opened. The building suspected of being a future Fresh Market, however, continues to sit empty.

Hopes for a Bluffton Fresh Market officially stalled in February when its corporate office announced that the chain would not open any new stores in 2018.

The lawsuit, which includes letters between the grocery chain and the developer, details a turbulent relationship:

• July 2017: Jaz Bluffton tells The Fresh Market it owes them $79,450 in past due rent.
• August 2017: Fresh Market disputes the claim, saying the building has yet to be completed per the lease agreement.
• September 2017: Fresh Market asks Jaz to pay a $600,000 "tenant improvement allowance."
• December 2017: Jaz sends a "default of lease" letter, saying Fresh Market has failed to pursue building permits.
• Jan. 3: Fresh Market responds that Jaz is in "default of lease" for not paying the $600,000 allowance.
• Jan. 18: Jaz denies it is in default of lease, saying the Fresh Market has not provided affidavits of payment to any contractors for "tenant improvement."
• Jan. 25: Fresh Market sends a letter stating they believe Jaz Bluffton to have misread the lease and that it has no record of receiving a December default notice. The letter also states the store received its permits in November 2016.
• Jan. 29: Fresh Market notifies Jaz Bluffton that it will "offset" its overdue rent with the unpaid tenant allowance.
• Feb. 16: Jaz Bluffton disagrees with Fresh Market's previous two letters and reiterates that the store is in default of its lease for past due rent and past due building permits. The letter also states that Jaz Bluffton must enter the unoccupied building to perform repairs.
• Feb. 22: Fresh Market disputes all of Jaz Bluffton's claims.
• March 16: Jaz Bluffton informs Fresh Market that it continues to be in default of payments. It also says the store is in default for failing to safeguard the premises as the property remains unfinished without climate control, which could cause mold.
• April 26: McNair Attorneys sends a letter to Fresh Market, asking the chain to voluntarily transfer the property back to Jaz Bluffton so the developer can mitigate damage to the building and avoid future loss. The letter claims the store is in default for both monetary and non-monetary reasons and says an application for eviction will be filed in 10 days if no action is taken.

An Alternative Dispute Resolution hearing has been set for Dec. 3 in the case.

This story was originally published May 10, 2018 at 5:49 PM with the headline "Lawsuit confirms a Bluffton Fresh Market. But it might be evicted before it can open."