College Station Costco Economic Development Agreement Overview

College Station’s economic-development agreement with Costco Wholesale Corporation was intended to facilitate development of a Costco warehouse and related retail improvements in the city. The agreement uses a performance-based incentive structure: Costco undertakes specified construction and operating commitments, and the city provides incentives tied to the new economic activity generated by the project. The Costco project was expected to add a major retail destination to College Station, increase sales-tax collections, create construction and permanent retail jobs, expand the city’s commercial tax base, and attract additional retail activity to the surrounding area. The project anchors Midtown Business Park with a major retail tenant, encouraging development on adjacent parcels.