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Boreal Community Media

Duluth City Council approves Costco tax breaks

Jul 21, 2020 05:53AM ● By Editor
Costco plans to build on W Arrowhead Road and Haines Road. |  Photo: WDIO-TV file

By Baihly Warfield of WDIO-TV - July 20, 2020

Duluth city councilors unanimously signed off on $1.35 million in tax breaks for a proposed Costco development. 

The tax abatements are for infrastructure at the site, not the building itself. It would include things like turn lanes, water and sewer main work and stormwater management. 

Councilor Joel Sipress said he believes that the city's sales tax revenue will go up significantly enough to justify the abatement for a "big box" retailer like Costco. He called it a "good business deal" for the city. 

Councilor Arik Forsman agreed with that sentiment. 

"This is more of a one-off than a new trend," Forsman said about the tax abatements. 

The St. Louis County Board is also asked to approve $650,000 in tax relief. They will hold a public hearing at 9:45 a.m. on Tuesday, July 28. 

Costco wants to build on W Arrowhead Road and Haines Road. The store aims to be open by fall 2021. 

To read the original story and see related stories, follow this link to the WDIO-TV website.

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