St. George • Long hoped for by many residents and high atop St. George city officials’ priority list, a second Costco is no longer an idle wish or the stuff of dreams.
Nearly a quarter-century after its first Costco opened at 835 N. 3050 East, St. George seems poised to land a second, this one on roughly 18 acres at 4700 S. Desert Color Parkway, just north of Southern Parkway and near Interstate 15.
On Jan. 2, City Council members voted 3-1 to approve a $3.8 million incentive agreement with the multibillion-dollar retailer for the second Costco and authorized Mayor Michele Randall to sign the deal once it is finalized.
“Thursday’s council decision was the first of many steps needed to bring this project to our community,” St. George Mayor Michele Randall told The Salt Lake Tribune via email. “Costco is a significant sales tax revenue source, provides great employment opportunities and would bolster our already thriving economic environment. I am thrilled with the progress that has been made.”
Incentive package
The incentive package the City Council approved defers up to $3.18 million in building permit and impact fees and public infrastructure and related costs for 10 years. If Costco meets performance-based standards, which city officials say includes operating two stores within city boundaries over that decade-long timeframe, the deferred total is forgiven.
Still, in their bid to secure a second Costco, St. George Economic Development Director Chad Thomas said city officials did not give away the store.
“There’s no sales tax deferments or property tax waivers or abatements,” Thomas said, adding the new Costco should still yield a positive return on the city’s investment over the 10-year period.
For her part, Council member Michelle Tanner objects to the incentive package on principle.
“I absolutely love Costco. I spend thousands of thousands of dollars every year at Costco … ,” she said at the Jan. 2 meeting, explaining her dissenting vote. “With that said, the principle behind offering incentives to a multibillion-dollar company and not offering those same incentives to [the] ma and pa store down the street is bothersome.”
Such arguments do little to dull the project’s luster to supporters, especially those who live in western Washington County and are enamored with the convenience and other benefits another Costco could bring.
“I can’t wait,” said St. George resident Jillian Taylor. “It will be much faster to drive from my home in Bloomington to the new Costco than to travel clear across town to the current one, which is what I have to do now.”
Mum’s the word
Precisely how much revenue and other economic rewards a second Costco might yield is unclear. City officials, at the behest of Costco, are being tightlipped about the store’s dimensions and other details, although Thomas said the building should exceed 100,000 square feet.
Moreover, he added, the business will employ between 250 and 300 workers and generate substantial sales tax revenue, the estimated amount of which he can’t disclose. “Unfortunately, we can’t share sales tax data from private companies.”
Costco officials also declined to provide any details about the second St. George store, citing the retailer’s policy not to comment on locations that are more than three months away from opening. The second St. George store likely won’t debut until some time in 2026, according to city officials.
More details might be forthcoming on Jan. 14, when the St. George City Planning Commission hosts a 5 p.m. meeting at the city offices at 175 E. 200 North to consider the design and site plan for the project.
Once the new St. George location opens, Utah will have 15 Costco stores. Costco’s worldwide earnings from its 890 stores topped $250 billion over the last fiscal year that ended on Sept. 1, 2024. Average yearly net sales at each location was roughly $261 million.
Note to readers • This story is available to Salt Lake Tribune subscribers only. Thank you for supporting local journalism.
