The developer of a new shopping center in Interbay is suing hippie grocery store giant Whole Foods after, the suit says, the company broke the terms of their lease when it tried to delay the opening of a planned store, setting back construction of the project.

In a lawsuit filed in King County Superior Court on September 26 by the Interbay Urban Center (IUC), the developer says Whole Foods—which was supposed to open the new 60,000 square foot store on December 10th, 2008— claims that grocery chain’s absence as an anchor store will cost IUC millions of dollars for delayed construction and “will create an appearance of a ghost town at the Whole Foods Interbay Shopping Center.”

IUC claims Whole Foods also attempted to renegotiate its lease, reducing the size of the planned store to 40,000 square feet. According to court records, Whole Foods told IUC that its larger stores are not currently profitable.

Whole Foods has four other stores in the Seattle area. The Westlake store is 48,000 square feet, the Roosevelt Square location is 50,000, Bellevue is 56,000 and Redmond is 60,000 square feet.

IUC says that Whole Foods owes $655,000 for construction costs and estimates that the value of Whole Foods’ lease and property at about $37,128,000.

It’s unclear whether Whole Foods still plans to open the Interbay store, but IUC is asking a judge to force the company to stick to its lease and pay for the delayed construction

Whole Foods also has a store scheduled to open in 2010 the Fauntleroy Place shopping center in West Seattle. Eric Radovich, spokesman for the Fauntleroy developer Blue Star, says the store is still expected to open on time.

Whole Foods would not comment on the status of future projects in Seattle.

Jonah Spangenthal-Lee: Proving you wrong since 1983.

21 replies on “Developer Sues Whole Foods For Breaking Lease, Delaying Opening of Interbay Store”

  2. Hippie? You seen their prices?
    Sounds like a typical chain — ride the extreme success of a few outlets to overexpansion and then bankruptcy. I’d be worried at talk like this. I also wonder how their big new store in London is doing, the one with no parking and the most expensive real estate on the face of the earth.

  8. you know, a person without a journalism degree would be posting more about fantasy football if they really wanted to flaunt the fact.

  11. JSP doesn’t DO credit where credit is due.

    Steal it, change the words, sign your name on it.

    “WHY BUY THE COW WHEN YOU CAN GET THE SEX FOR FREE”
    -Jonah (#7)

  13. I hate Whole Foods. Hate. It. Once upon a time, it was kind of a crunchy hippy store where you could get organic produce and bulk spices. All of the new stores are 90 percent dedicated to food made in-store, all of it bland and greasy and all of it unhealthy. That place can’t go away soon enough.

    And Madison Market is great, but I wouldn’t say their selection is better.

  14. “I also wonder how their big new store in London is doing, the one with no parking and the most expensive real estate on the face of the earth.”

    Having just returned from London, I imagine that the lack of parking probably isn’t going to hurt them. (The prices might, though!) London is amazingly dense and full of people who actually walk to do their shopping (and take the Tube wherever needed). So if there’s any place a parking lot is not required, it’s London.

  15. This is a stunningly boring post.

    Construction lawsuits are as common as rain in Seattle in winter. Talk to any commercial real estate attorney. There isn’t a single major construction project in the county that gets completed without a lawsuit or three.

    This is not news. This is the everyday business of large construction projects.

    What could potentially become news is if this kind of thing becomes more common or widespread because of the credit crunch and economic meltdown we are experiencing. But at least on the surface, this appears to have nothing to do with the current economic crisis.

  16. The people at Madison Market are not nice, they are righteous. They need to eat some fucking Ho Hos and get over themselves. But definitely a better store than Whole Foods.

  18. Whole Foods Market has done amazing things for the grocery industry, organic products and even the usda organic rule would not be anywhere close to where it is without them. They are trying to curtail the bigger is better axiom that has killed so many businesses. I think what they are doing is responsible and am confident they will open, lawsuits like this happen all the time and unfortunately are used as leverage in negotiations all too often. I hope it is resolved soon, I will continue to shop at their existing stores, their quality is excellent, staff knowledgeable and the selection is amazing! With all the options of coarse there are going to be pricier items, but if you watch what your buying and cook a little more yourself you will pay no more than at QFC….and it’ll be better for you and everyone else.

  19. Whole Foods Market has done amazing things for the grocery industry, organic products and even the usda organic rule would not be anywhere close to where it is without them. They are trying to curtail the bigger is better axiom that has killed so many businesses. I think what they are doing is responsible and am confident they will open, lawsuits like this happen all the time and unfortunately are used as leverage in negotiations all too often. I hope it is resolved soon, I will continue to shop at their existing stores, their quality is excellent, staff knowledgeable and the selection is amazing! With all the options of coarse there are going to be pricier items, but if you watch what your buying and cook a little more yourself you will pay no more than at QFC….and it’ll be better for you and everyone else.

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