College Station: Costco Signs Land Deal with City for Store at Midtown Business Park
Feature Photo: An artist rendering of the outside of Costco retail building. Image: Costco
by Art Benavidez
College Station (Brazos County) — City Council approved economic development and property purchase agreements last month for an 18.670-acre tract of land with a national member-only big-box retailer.
Costco Wholesale will develop a store on the undeveloped property near the intersection of Earl Rudder Freeway and Corporate Drive in the city’s 70-acre Midtown Business Park, just north of Express Care at St. Joseph Health.
The retailer has agreed to construct their 160,534 square-foot facility, along with required infrastructure, and be ready for business by December 31, 2023 in order to purchase the property at a discounted price of $3.6 million.
“As part of the Costco development, they will be responsible for constructing infrastructure that serves all 70-acres,” said Natalie Ruiz, College Station’s director for Economic Development. “The best example of that is the (adjacent) 5.5-acre detention pond. While they’re on site, Costco will build the 5.5-acres and the storm sewer as part of their development and we will reimburse them for our proportionate share of that.”
The discounted price includes a credit of five percent off the purchase price to Costco at closing, along with the city reimbursing Costco for development-related permit fees.
The appraised value of the property is $4.4 million and the city is estimating the reimbursement of fees will be at $300,000, which would leave the property at $3.1 million at five percent at closing. The city’s infrastructure participation is estimated at $900,000, which will net the city $2,276,780 for selling the property.
The city is hoping the Costco development will hope spur developments on the west and east lots of the business park: Image: City of College Station
The city purchased the majority of the property in 2000 for approximately $700,000 and was looking at Costco to anchor the commercial portion of the business park, Ruiz said.
In addition, the city will establish deed restrictions for business ventures that would encroach on Costco’s interests in the remaining city property within the vicinity that are at or over 10-acres from locating in the area.
“We’ve had the pleasure of working with Costco for many, many months to reach this point,” Ruiz said. “Now, it’s time to take the next steps.”
Those next steps, according to Ruiz, now include the site construction plans and permit applications which will be reviewed for compliance this month and next.
Final steps include bringing an infrastructure participation agreement to the City Council.
Art Benavidez (Construction News Reporter, Central Texas) is a seasoned journalist with over 15-years of experience in writing breaking news and in-depth features at the local level. He honed his research and reporting skills in newspapers and magazines throughout South and West Texas along with expertise in crafting digital content as Managing Editor of New Image Marketing Research Corporation. Benevidez is a Texas native and graduate of UT-RGV.