ROSEVILLE, Calif. — People in West Roseville could soon see a new Costco after the city council approved a $6 million incentive.
The $6 million would be paid to Costco once the store opens to offset infrastructure costs.
"It'll be a benefit to those on the east side because we will see less traffic, so this is a benefit to all of Roseville," said Mayor Bruce Houdesheldt.
The cost of the project, including about $16.5 million in public infrastructure, has delayed development in the nine years since the project was initially approved, according to city council documents.
Assistant City Manager Ryan DeVore said at a May 17 city council meeting Costco had concerns about the timing of reimbursement. He said city staff was confident most of the reimbursement would happen in 5-7 years.
DeVore said while it is unlikely reimbursements would not be paid in seven years, there is a backstop of up to $1.8 million if not paid to Costco within seven years of the store opening. The city would then take Costco's place to be reimbursed instead, but he said it's unlikely to happen.
Costco would be the anchor store for the Baseline Marketplace, located at Baseline Road and Fiddyment Road. It's an 81-acre retail development in the Sierra Vista Specific Plan. Once completed, the project will be about 750,000 square feet of building area, including three commercial buildings, four fast food restaurants with drive-thru facilities, three gas stations and 23 outlying restaurants and retail stores.
The first phase of the project, which includes the Costco store, gas station, car wash and three other parcels, would bring the city about $3 million a year in tax revenue. Once Baseline Marketplace is finished, it's expected to bring the city about $7 million in annual revenue.
"Without this support, it's likely they would build a store in an area locally, but not in Roseville and then we would lose out on all of that revenue," DeVore said.
The Costco project is also expected to bring more than 600 jobs, paying an hourly wage of $27.50 as well as benefits.
When will Costco be finished?
Mike Dobrota, a representative for Costco, said they're planning on building the Costco as quickly as they can.
"Let's say that we can get permits near the end of this year, we could very possibly be open by the end of next year. We typically don't open during the holiday season so it could very possibly fall into January or February after the next holiday," Dobrota said at the meeting.
When asked about the performance of the current Roseville Costco Dobrota said all he could say is it is "one of the best in the United States."
Dobrota also said there is no intention to close the existing Roseville Costco.
"This is very exciting. This is something we wanted from the day that West Roseville started to begin," said District 2 Councilmember Pauline Roccucci.
Find more information about the Costco project HERE.
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