Grease processor sues Downtown South developers

The owners of a small business in south Raleigh have sued the developers of the proposed Downtown South development, alleging they are breaking the business' lease and are trying to force it out.

Posted 11:02 p.m. Apr 1, 2021 — Updated 11:04 p.m. Apr 1, 2021

RALEIGH, N.C. — The owners of a small business in south Raleigh have sued the developers of the proposed Downtown South development, alleging they are breaking the business' lease and are trying to force it out.

GreaseOutlet.com LLC, which hauls and processes grease trap waste from restaurants for biofuel, has leased about 4.1 acres on South Wilmington and Walker streets since 2016 and has invested more than $1.5 million in equipment needed to obtain needed environmental permits, according to its lawsuit.

Because of its investment and the extensive permitting required to operate, GreaseOutlet secured a lease agreement with its initial landlord to allow it to remain on the site through 2031, the lawsuit states.

But after the Downtown South developers acquired the property in 2019 as part of an assemblage of 140 acres for a planned mixed-use project featuring a professional soccer stadium, hotels and office towers, along with stores and residences, developers tried to break GreaseOutlet's lease, according to the lawsuit.

The developers first tried to find another location for the business, then refused to sign GreaseOutlet's environmental permit renewal if the business didn't agree to shorten the lease to two years and finally tried to return part of the 2021 rent that the business had paid in advance, according to the lawsuit.

GreaseOutlet wants a court to declare that its lease is valid and must be honored by the developers.

Suggest A Correction