St. George • A second Costco slated for construction in St. George will be bigger than the first and could debut in early 2026.
During Tuesday’s St. George Planning Commission meeting, commissioners voted 6-0 to recommend approval of the Costco planned for nearly 18 acres at 4700 S. Desert Parkway, just north of Southern Parkway and near Interstate 15.
“I think Costco will be great there,” said Planning Commissioner Austin Anderson, echoing the sentiment of his commission colleagues.
As currently outlined, Costco officials told planning commissioners, the new building will consist of at least 160,000 square feet and possibly even more. That’s 12,000 square feet more than the first Costco, which opened on the other side of town at 835 N. 3050 East nearly a quarter-century ago.
“As we continue to work on the master plan, the building [could] get a little bit bigger as we add more features inside … and then move the mechanical equipment around,” said Costco Real Estate Director Stephen Cross, adding the size of the store could increase another 1,000 to 4,000 square feet.
As for when the second store – billed as Costco South St. George – might open, Cross told planning commissioners that the construction drawings are already underway and the new Costco could happen as early as February or March in 2026.
Bidding for the win
St. George landed the new Costco after emerging as the winner in a competitive bid process that involved other Washington County cities. As part of its winning bid, St. George offered an incentive package that defers up to $3.18 million in building permit and impact fees and public infrastructure and related costs for 10 years.
That amount is forgiven at the end of that period provided Costco meets performance-based standards, which include the multibillion-dollar retailer operating the two stores within city boundaries. Without the incentives, city officials attest, the store could well have landed elsewhere.
“It was a competitive process,” said St. George Economic Development Director Chad Thomas. [Costco] “was looking at a few sites in Washington County, and the incentive agreement provides an opportunity to bring that second Costco … to St. George.”
For his part, St. George Council member Jimmie Hughes calls the deal a no-brainer.
“From an economic standpoint,” he said, “having another Costco will boost the amount of sales tax the city collects and is one of the ways we can keep our property taxes low. The nice thing about sales taxes is they also get paid by visitors, second homeowners in St. George and residents who live in neighboring cities. So that’s a great return on our investment in Costco.”
Ticking the boxes
Aside from the incentive package it is offering, according to city officials, St. George ticks a lot of boxes that make it an ideal location for a second Costco. For starters, its location adjacent Interstate 15 and near other major highways and traffic arteries is a plus. So is the St. George metropolitan area’s rapid growth. Washington County’s population is projected to more than double to about 465,000 by 2060.
In addition to the main building, the new Costco will include 797 parking stalls and a five-lane fueling station that will have 15 pumps that provide 30 fueling positions.
Costco proposes illuminating the property with 30-foot-tall street lamps, which some planning commissioners said they would like lowered to lessen the light pollution in the area. But Cross countered that taller lights provide more uniform lighting.
Now the Planning Commission has signed off on the design and site plan for the store, the matter will soon go before the City Council, which is expected to follow the Planning Commission’s lead.
Said Hughes: “I’m excited to see another Costco, and I think residents living in Sun River and other areas near where it will be built are looking forward to it as well.”
