A new lifeguard headquarters that cost Lavallette taxpayers about $387,000 was shut down due to black mold.

Wallace Contracting owner Steve Wallace tells News 12 New Jersey that his company simply took the modular building from Pennsylvania and laid it down on the foundation they built. He says that he noticed a moisture problem in July and immediately notified the municipality.

The Philadelphia Avenue building was only put into place earlier this year.

Town officials say they may file a lawsuit to try to recoup the money lost.