City of Duluth, St. Louis County to Consider $2 Million in Tax Abatements for Proposed Costco Store
DULUTH, Minn. – Costco may move forward with a new store in Duluth if the retailer gets tax abatement money from local government.
This news comes after the international chain had ended a previous agreement to build a store at the same site because of high project bids.
The site, located at the intersection of West Arrowhead Road and Haines Road, requires improvements such as upgrades to the public roadways, water and sewer mains, and subsurface stormwater management in addition to other infrastructure improvements, according to the city.
Construction of the Duluth Costco store could start later this year and be finished in fall 2021 if the company gets more than $2 million in tax breaks for those improvements.
In the current proposal, $1.35 million in abatement money would come from the city of Duluth and $650,000 would come from St. Louis County over a ten-year span.
Mayor Emily Larson believes Costco is a “great fit” for Duluth and says the proposed tax breaks are important to bring in much-needed economic development during this time.
“Here we are in a global pandemic. We have businesses really struggling. We have people unemployed. There is a lot to feel down about in terms of our economy and yet a couple miles from my office we have a billion dollars of hospital investments happening, now we will have Costco going in. These are signs that there is an economic recovery possible,” explained Larson.
The proposed store could bring 200 jobs to the region. It would be about 160,000 square feet and have more than 700 parking spaces.
A public hearing will be held on Tuesday, July 28 at 9:45 a.m. in the St. Louis County Government Service Center in Virginia for the proposed tax abatement financing request.
The Duluth City Council is also expected to talk about the tax abatement on July 20th.
According to Mayor Larson, if the tax breaks are approved, Costco is ready to move forward with construction.