City Council approved an Economic Development Agreement between Costco Wholesale Corp. and the City, as well as a Performance Agreement between the Pearland Economic Development Corporation (PEDC) and Costco at the regular meeting Monday (April 13).
The City has been in talks with Costco since 2013. The company requested assistance from the City and the PEDC due to the smaller size of the trade area, lower business density count and associated cost of construction that will all reduce the return on its investment.
The agreements that were reached include refunding 50% of the 1.0% of sales tax collected at the business location for up to 10 years and in an amount not more than $750,000.
The PEDC’s proposal was to reimburse Costco for the public infrastructure associated with the improvements that were necessary to build the store on the site located on Business Center Dr., at the northwest corner of SH 288 and CR 59.
Costco will be paid $246,827 when they invest $30 million, receive a Certificate of Occupancy and create 153 jobs at the store.
The Pearland location will consist of a 150,000 sq. ft. retail warehouse with an attached tire center and a freestanding fuel facility. It is anticipated that approximately 75 full-time and 75 part-time jobs will be created.
Costco Wholesale Corporation is a membership warehouse club that provides a wide selection of merchandise. As of 2014, it is the second largest retailer in the United States, the third largest in the world and the largest membership warehouse club chain in the country.
Developers estimate that the store will open for business in October.
For more information about Costco, visit Costco.com.