LIHU'E, Kaua'i — Costco, which earlier said it was dropping its proposal to build a store in Lihu'e because of high construction costs, is back on track and hopes to have its facility open as early as August.

Grove Farm Co. said yesterday in a news release it has completed the sale of 15 acres adjacent to the Kukui Grove Center and Home Depot to Costco, which plans a warehouse and self-service gas station at the site.

The store would be the first Costco on Kaua'i and will likely bring increased price competition to the island.

Grove Farm president Warren Haruki said county officials were helpful in pushing the plans forward.

"We are thankful that our county officials and Planning Commission members recognized the importance of approving the necessary permits to expedite Costco's presence in Lihu'e," Haruki said.

Costco received zoning permits in May 2005 for a 150,000-square-foot building and gas station at the site, but in October announced that construction bids were so high — 30 percent higher than anticipated — that it could not proceed.

However, Costco president Jeff Brotman said at the time he hoped to find a way to restart the project.

Costco officials did not return a phone call late yesterday.

The Lihu'e Costco will be the sixth in the state, joining three stores on O'ahu and one each on Maui and in Kona.

Reach Jan TenBruggencate at jant@honoluluadvertiser.com.