I recall the site in Brampton being the subject of the suit...it is now a Costco. If you look at that site, First Gulf built their Orion Gate shopping centre which is pure retail and across the street is the industrial zoned lands and that is where the Costco is.
I tried to find details on the case (can't locate it but will keep trying) essentially Loblaws claimed (unsuccessfully) that the location was a retail outlet and that they should be subject to the same municipal property tax rates as other retailers or not be allowed to open up an essentially retail operation in an industrial area. The opposing argument was that the bulk nature of the shopping and the requirement for memberships made them a wholesale operation and that locating in, and being taxed as, industrial real estate was appropriate.
This case goes back a long ways so forgive my memory if I am not 100% clear on it but that was the essence of it and why I have never stepped foot in (never mind shopped in) a Costco.
Think of the bargains I have missed if the situation has changed in the meantime
The point of raising in this thread was just to contrast others favouring Costco over WalMart when my boycott runs the other way.