99 Cents Store Sues City Over Eviction

The 99 Cents Only chain filed suit Monday in U.S. District Court to block the city of Lancaster from ousting one of its stores to make way for the expansion of a rival Costco store.

The suit alleges that the Lancaster city redevelopment agency violated federal law when it voted June 27 to spend $3.8 million to acquire the 18,878-square-foot building at the Valley Central Shopping Center without due process or a proper public purpose.

“We had an 18-year lease on this property and come to find out that Costco and Lancaster have been secretly meeting about evicting us from our own land,” a company official said. “That’s not due process and making a very successful corporation richer is not a public purpose.”

But Lancaster City Atty. Dave McEwen disputed accusations by 99 Cents Only. “It’s without any substance and there is no basis for any allegations in the complaint,” McEwen said. “There were no threats made and Lancaster has complied with the law in using its eminent domain power.”

Lancaster Redevelopment Director Stafford Parker said last month that the city explored all possible alternatives before considering condemnation. But when Costco, the city’s third-largest retailer, threatened to leave for Palmdale it left the city with no choice but to accommodate the retailing giant.