City Council Tuesday night gave preliminary approval to start the process of bringing a 150,000-square-foot Costco retail store and fueling station to Longmont. The council voted unanimously for three agreements which include incentives to Costco to develop a 26 acre site east and adjacent to the Harvest Junction retail and residential development.
A second reading and final vote on the agreements, along with a public hearing, is scheduled for Dec. 1. If approved, the city estimates the Costco development could open as soon as July 2023 and no later than 2024, according to a city press release.
Council members reviewed the economic development agreement with both city and Cosco officials Tuesday night. They were told the partnership with the retail giant could generate over 300 jobs with employees earning over $58,000 in average annual wages.
Costco, which operates 800 stores nationally, has some of the highest paid retail employees on the market and one of the lowest employee turnover rates, said Jenifer Murrillo, Costco’s director of real estate.
The company can afford to pay well because of its scaled back facilities, Murrillo said.
“We have eliminated all the frills,” she said. “We have concrete floors, our ceilings are exposed and we lack commercial advertising.”
“We pick the best employees,” Murrillo added. “We compensate them fairly and we grow with them.”
The total hard dollar cost to the city is estimated to be $12.9 million, Jim Golden, the city’s chief financial officer, told the council. Of that amount, $9.6 million will go to incentivize Costco to locate in Longmont, according to a city staff report to the council.
The balance of $2.9 million is the costs related to the affordable housing aspect of the development, according to the city staff report. The city costs will be partially paid from the Affordable Housing Fund but primarily from sales tax to be generated from the development, according to the city staff report.
As part of the Costco development, the city can acquire 9 acres for affordable housing purposes, according to the city news release.
The city would net over $3 million in new annual sales taxes after the first year of Costco’s opening and the store would generate $73 million in net new sales taxes over 20 years, Golden told the council.
The council said the Costco proposal would go through the city’s land development review process, which could take 12 to 18 months, city officials said.
“Voices will be heard and will be listened to as we proceed forward,” Mayor Brian Bagley said. “In general, I feel excited about this project.”
