Costco is coming to Dallas!
Costco is set to open its Dallas store soon. With a $3 million economic grant from Dallas, Costco has promised a lot of jobs to Dallas residents with the city council upbeat that the corporation’s store will be a wonderful investment to them and the city.
Costco had sent a request to the city council for a grant and on Monday morning, the economic development committee, with absolute no discussion, sent the request directly to the city council for approval.
Speaking about the Costco’s request, the committee’s chair, Ricky Callahan, termed the grant as a wonderful investment as it is to be paid out of the city’s public/private partnership funds and that the returns would be immediate.
The 13.2 acres of land on which the corporation intends to put up the store belongs to the Texas department of transportation and is currently not on the tax roll, so it will generate sales tax for the city. The land is located on Colt road near north central expressway and LBT freeway.
Callahan projects immediate returns within the first year of the store’s operations.
The staff in the city told the council that an estimation of a net fiscal impact of 4.8 million in the next 10 years and 16.8 million in the next 20 years is expected. The committee voted by a majority to send the request to the full council where it will be discussed on May 11.
Costco is upbeat that it hopes to create 150 permanent jobs with $13 per hour pay and $22 on average .The company also has expectations of annual gross sales of $125 million. It is also confident that it will hit its first million dollar installment by July 2017 if it realizes its set goals in the first year. It also says that it’ll keep realizing $500,000 installments every end year if it continues adding permanent jobs. Dallas will monitor Costco’s performance up to at least 2025 and the company will have to repay the city $1 million if it fails to comply with the gross sales or job requirements for one or more years during this period.
Costco has also promised to do a repayment to the city of $1 million if it closes the store before end of year 2027. The superstore is expected to start building in August and is hopeful that by February 2017 they will open for business.