A historic Italian eatery in St. Paul is suing the city after its plans to expand on city-owned property fell through, according to a representative for the company.

Cossetta’s filed the lawsuit in Ramsey County District Court on Friday afternoon. It alleges the city breached its contract with the company when it terminated a pending development agreement reached between the two parties over Cossetta’s planned purchase of city land to accommodate its expansion, said Mike Zipko, a spokesman for David Cossetta. Cossetta is the president of Cossetta’s Inc.

The city disputes that claim.

Cossetta’s had planned to buy a parking lot from the city at the corner of Eagle Parkway and Exchange Street with aims to build an event center on the parcel, Zipko said.

Plans were advancing to that end when Zipko said the city abruptly opted to terminate the development agreement. He did not detail what disagreements between the two parties preceded the city’s decision.

It’s Cossetta’s position that the way the city terminated the agreement violates state law, Zipko said.

“A lot of time and planning has gone into this so it’s very frustrating for (David Cossetta) and his team,” Zipko said. “If the city decided they didn’t want Cossetta’s to develop that property … there was a different way to do that. We believe the way the city approached this does not meet state law.”

The company is hopeful the court will find the city’s termination of the development agreement unlawful and that Cossetta’s expansion efforts can move forward, Zipko added.

St. Paul City Attorney Samuel Clark said the city was within the bounds of the law when it opted to terminate its development agreement with Cossetta’s.

“The crux of this contract dispute is about a 2005 agreement that included a number of actions that both parties failed to complete before a certain date that would have allowed the sale to move forward,” Clark said. “Because the parties didn’t complete those actions, we feel we are fully within our rights to terminate the contract.”

He added that several contingencies written into the agreement weren’t met.

Those contingencies were outlined in the contract, which was included as an attachment to the lawsuit filed Friday.

They include approval by both Cossetta’s and the city of construction plans for the event center, a financing plan agreeable to both parties, and receipt by Cossetta’s of all necessary zoning, permits and other approvals deemed necessary for site improvements, among others.

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“We have been clear with Mr. Cossetta and his team throughout this process that we want to see the project move forward but he has to comply with city policies for selling city-owned land, Clark said.

Cossetta’s announced last May plans to expand its bustling Cossetta Eventi catering operation by remodeling the big hangar-like building next door that currently houses the company’s catering kitchen. The plan had been in the works for years.

The building was to house an event center that would seat nearly 500 people for weddings, banquets and other ceremonies. The kitchen would connect to the center via an enclosed walkway.

Because of its scale, the event center “cannot be financed or operated” without the use of the city’s parking lot, the company reported.

“We are truly disappointed to have to file this lawsuit,” Cossetta said in a prepared statement Friday. “We believe we did everything we could to avoid a court proceeding, but now are left with no options.”

Clark said the city plans to file a response to the lawsuit in the near future.