Larissa Kurz
Regina Leader-Post
City council is set to consider offering Costco a multimillion-dollar incentive to build in Regina after the big box store indicated it might establish its second location outside city limits.
According to a new report going to council Wednesday, the retailer recently terminated its purchase agreement with Forster Harvard Developments for land in the Westerra neighbourhood and is considering an “alternative site” outside the city with lower development costs.
Costco had submitted a development proposal for 8701 and 8201 Dewdney Avenue in 2024, outlining plans to build a second retail store and gas bar on the west side of Regina.
The city has negotiated the $6.78-million incentive deal in a bid to keep the retail giant within Regina, preserving the economic benefit of the store as a property tax source and an “anchor tenant” for Westerra and surrounding neighbourhoods.
“Costco is a unique anchor that drives tremendous traffic and sales through a traditional bricks and mortar shopping experience,” reads the report. “It is in the City’s best interest to see retail stores continue to develop and operate within the city.”
If approved, the development incentive grant would be delivered in three instalments: $1 million within a month of Costco buying the land, $2.89 million within a month of beginning construction, and $2.89 million within a month of the store opening.
The funds will come from the city’s land development reserve, to be paid back over eight years using the store’s commercial property taxes.
As negotiated, the incentive amounts to the total cost for Costco to develop the site so it’s ready for construction. The deal is contingent on Regina’s second store being built and open within two years of acquiring the land.
Costco’s primary Regina store in the east-side Aurora neighbourhood averages two-million visits per year, according to analysis by the city. A second location is anticipated to employ another 300 people.
lkurz@postmedia.com
