Costco Cancels Purchase Agreement for Arrowhead, Haines Road Location

DULUTH, Minn. – Costco will no longer be building its long-awaited store in Duluth.

According to Dave Holappa of Holappa Commercial Real Estate, earlier this week Costco canceled its purchase agreement for the Arrowhead Road location.

Last year the planning commission unanimously approved a plot of land at the corner of Haines Road and Arrowhead Road for the development.

Holappa confirmed Friday there was no question Costco had issues working through the city, which included concerns about required labor agreements to be able to build in Duluth.  Another concern for the retailer may have been rising construction costs, which Holappa says came in over budget.

There is no word yet from Costco about their future plans for the area, but the City of Duluth says they are “hopeful Costco chooses to revisit their decision and we’re ready to continue to work in support of them if they do.”

The first-ever Costco in Duluth would have employed around 200 people.