Costco is suing CityGate developer Anthony Costello & Son for leasing space to liquor store owner Gap Partners IV LLC, in what the retail giant said is an unauthorized location, according to a lawsuit filed by the company Oct. 28.
Costco said the project’s agreement has allowed for only one 12,000-square-foot liquor store to be built in a designated area at the site, and the developer has chosen to build the store at “a location that is completely outside the location authorized.”
According to Costco, the store filed the suit six days after sending the developer a letter regarding the terms of their agreement.
Costco has asked a federal court to cancel Costello & Son’s lease with the liquor store, and for the developer to pay its damages and legal fees as a result of the suit.
Both Costco, and the developer, have yet to comment on the matter.