Duluth Mayor Reacts to Costco Officially Coming to the City

DULUTH, Minn. –With about $2 million in tax breaks now approved for infrastructure improvements, Costco is officially coming to Duluth next fall.

After a year of negotiating with the retailer, Duluth Mayor Emily Larson said she’s excited that both the city and county tax abatement proposals were approved.

St. Louis County commissioners unanimously approved $650,000 in tax abatement for Costco on Tuesday, while Duluth city councilors voted to give $1.35 million in tax abatement to the retailer last week.

The tax breaks will pay for infrastructure upgrades in and around the lot where Costco will build.

The city faced some criticism for giving such a large break to Costco, but Larson said that long-term, it’s a win for the city.

She added that it will add about 150 jobs to the area, plus people far outside of Duluth might make the trip to shop at Costco.

“They right now have thousands of memberships here in Duluth, up on the Iron Range, and even in Canada, and these are people who are driving all the way down to the Twin Cities to benefit from them as a retailer,” Larson said about Costco. “So for us to have that here in the city of Duluth, these are new sales tax revenue sources.”

The mayor said crews will likely start working on the site by the intersection of Haines and West Arrowhead Roads in the next few weeks.

Costco plans to open its doors next fall.


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