The lawsuit alleges the town’s Planning Board ignored legal requirements and community safety concerns
the staff of the Ridgewood blog
Paramus NJ, The massive Costco Wholesale planned for Route 17 in Paramus is facing a major legal roadblock. A local resident has filed a lawsuit to strip the warehouse giant of its building approvals, alleging that the town’s Planning Board ignored legal requirements and community safety concerns.
If successful, the suit could send the 184,000-square-foot project back to square one, leaving the site of the former Stop & Shop and Kmart vacant for even longer.
The Allegations: “Arbitrary and Unreasonable”
The lawsuit, filed by David Lorenzo—a resident of nearby Clauss Avenue—targets both the Paramus Planning Board and Costco Wholesale. The complaint hinges on two major legal arguments:
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Failure of Notification: The suit alleges the developer did not properly notify neighboring property owners about the hearings, a strict requirement under New Jersey land use law.
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Insufficient Analysis: Lorenzo argues the board failed to properly analyze the “potential harm” to the surrounding neighborhood before granting the variances needed for the project.
According to the filing, the board’s decision to greenlight the project was “arbitrary, capricious, and unreasonable.”
What’s at Stake for Route 17?
The project, which received the go-ahead in October 2025 after eight months of heated testimony, is one of the most anticipated retail developments in North Jersey. The plan includes:
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Demolishing the vacant Stop & Shop and the adjacent Kmart strip mall.
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Constructing a 184,000-square-foot retail warehouse.
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Revitalizing a stretch of Route 17 South that has sat largely dormant for four years.
Traffic and Noise: The Neighborhood’s Big Fear
During the 2025 hearings, Paramus residents voiced significant concerns about the influx of shoppers to an already congested Route 17.
To appease neighbors, Costco had previously agreed to install an 8-foot-tall fence on a slope to provide a better visual and sound buffer. However, for residents like Lorenzo, these concessions don’t go far enough to protect the quality of life in the residential pockets tucked behind the highway.
Costco’s Expanding NJ Footprint
This location would mark Costco’s 21st retail store in New Jersey. Currently, North Jersey shoppers flock to locations in:
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Teterboro
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Wayne
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Clifton
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East Hanover
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Hackensack (Business Center)
The Paramus location is viewed as a “crown jewel” for the company given the borough’s status as a global shopping destination—even with the county’s famous Sunday “Blue Laws” (which keep most retail closed one day a week).
What Happens Next?
As of January 6, 2026, attorneys for the Borough of Paramus and Costco have declined to comment on the pending litigation.
If the Superior Court judge sides with the resident, the Planning Board’s approval would be voided. This would likely force Costco to re-apply, restart public hearings, and potentially redesign the project to address the legal deficiencies cited in the suit. For now, the timeline for the Route 17 Costco opening remains “uncertain.”
Project Summary: Paramus Costco Lawsuit
| Detail | Status |
| Location | Former Stop & Shop/Kmart, Route 17 South |
| Project Size | 184,000 Square Feet |
| Legal Status | Approval challenged in Superior Court |
| Primary Concern | Improper notification & traffic impact |
| Next Step | Court ruling on validity of approvals |
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Thank you Mr Lorenzo for your attention to this matter. You have my complete endorsement
Will there be a designated area of the parking lot where the shuttle buses and taxis from Rockland County can conduct their drop-offs and pick-ups?
This Important decision…even the former Stop and Shop super-market that closed had a record of Truck deliveries at all hours of the day and evenings being right off a
super- highway route 17 South and 17 North amidst consumers attempting to cross over the route 17 access road with stop signs that created many risks prior to the stop and shop closure ..what do local homeowners off Linwood Avenue
Have to say outside of a forced exit to route 17 South only /No local traffic north on local Linwood north from delivery patterns on semi-trailers ..
Whatever they build a forced route 17 exit southward only since 17 north from old stop and shop chaos police know all about ..
Huh??
Exactly!
It will cause a traffic nightmare for neighboring Ridgewood residents.
Everyone seems to be forgetting that there was a fully operational Kmart there at the same time the supermarket was operating. How could Costco possibly generate any more traffic than those two did in their heyday?
Small price to pay for this important step forward in Paramus/Ridgewood’s transformation into Fort Lee North.
Paramus doesn’t care about traffic implications for neighboring Ridgewood residents.
And Ridgewood doesn’t care about traffic implications for Ridgewood residents either.
Build baby build!!
Frivolous litigation.
The COSTCO that the rapidly growing Paramus-Ridgewood corridor wants and needs is coming and no amount of wasted court time is going to stop it.
I also know many of our friendly neighbors north of the border in Rockland County are equally excited about the opening.
will the ambulances stop there to shop
More jobs, and at least that area gets cleaned up. What a mess it’s been never for 10 years.
This is not a “major roadblock.” This guy is a pest with a history of frivolous lawsuits against municipalities across the county. It’ll get tossed.
I hope it gets tossed! How is this guy paying for this challenge? He doesn’t even live near there but I do and I approve of this because right now the place is a dump!
I can’t wait for this to open! Hopefully some of the very desirable Costco demographic will make their way up Linwood and into our dynamic CBD.
So many great shops and restaurants for them to discover! And soon, a Performing Arts Center!
Sounds like Costco should have used Kensington as their builder…
Clauss Avenue? His dead-end street, and the ancillary streets to it, will receive ZERO impact from this development. No Costco membership for this crumedgeon.
People complain, but if Costco not gona be build, than they will build a 100 units of townhomes. That’s what you want? It’s happened on the corner of Ridgewood ave and Paramus Rd.
They was against the CVS and now they will build 46units. Paramus is over built as is. People so ignorant.
Newsflash: You shouldn’t live in Bergen County if you don’t like over-development and traffic.