City Green-Lights Tax Breaks For Costco, County To Have Public Hearing Next Week

DULUTH, Minn. — Duluth city council unanimously approved a tax abatement plan on Monday evening for Costco to build on the corner of Arrowhead and Haines roads.

St. Louis County still needs to approve tax breaks for Costco for the company to agree to build in Duluth.

$1.3 million will come from the city of Duluth, and $650,000 may come from St. Louis County if county commissioners approve it. The tax breaks will be spread out over ten years and will cover infrastructure improvements and site development expenses for Costco to build on the site.

The Costco is estimated to add 200 jobs to the area. The retailer’s proposed store would be 160,000 square feet with more than 700 parking spaces.

Construction on the new big box store could begin as early as this fall, with a goal of opening in the fall of 2021.

The St. Louis County board will hold a public hearing on July 28th at 9:45 a.m. in Virginia at the county’s government service center to address the tax abatement issue, and could vote on it that same day.