Monaghan County Council says it provided Aldi design assistance to solve flooding issues at its proposed store at McNally's Carpark.
The German retailer confirmed last week that it wouldn't be progressing with the store, after what it said were "unsuccessful negotiations" with the local authority on significant flood remediation and flood relief works outside the Aldi site boundary.
Aldi first applied for planning permission to build a store in the town in 2016, but it was refused over flooding concerns.
After pre-planning consultation, permission was approved after an An Bord Pleanala appeal in 2019.
One of the conditions of the planning was that Aldi would reroute a public storm water culvert, which the council says it provided design and technical assistance on.
However, progress was never made on the issue.
Aldi had said it was still committed to the plans and will continue to work with Monaghan County Council to find a solution.
With the halting of plans, solicitors for Aldi terminated the council's lease of the carpark, with it to close this week.
Councillors had raised concern over the loss of parking, with a council spokesperson again reaffirming that additional long-stay parking will be moved to the Lower Courthouse Car Park.
As well as this, once road works at the Margaret Skinnider Roundabout are completed, the council plans to develop a new car park at the former Eircom site on the Broad Road.