New Costco gets $6 million boost from Roseville City Council. When it might open

West Roseville’s future Costco Wholesale cleared a significant hurdle Wednesday that clears a path for construction.

The Roseville City Council unanimously approved a special deal with Costco in its meeting Wednesday evening, agreeing to reimburse the retailer up to $6 million as an incentive to soften the $16 million price tag for infrastructure on its new store.

The deal was integral to making a Costco warehouse a reality for west Roseville, according to meeting documents.

Baseline Marketplace, on the corner of Baseline and Fiddyment roads, is at the edge of settled Roseville and lacks much of the infrastructure needed to support such a large retail center.

“The project requires approximately $16.5 million in public infrastructure to get started, a sum that has proven prohibitive to commencing development in the nine years since initial project approval,” meeting documents said.

In late 2021, Costco contacted city leadership about their interest in buying a 29-acre parcel at Baseline Marketplace, but expressed some hesitancy over the significant upfront infrastructure costs.

“After a lengthy negotiation, the parties agreed to an up to $6 million lump sum payment,” the city said.

This isn’t the first time the city has offered this kind of deal. Roseville has in the past offered reimbursements to the Westfield Galleria and Roseville Automall as a way to entice major retailers to put down roots and bring in waves of tax revenue.

To this day, the Galleria and Automall are the largest generators of sales tax revenue for the city.

Costco is expected to follow suit.

Assistant City Manager Ryan DeVore said the new Costco is expected to initially generate $3 million in revenue during its first year and it is expected to grow to $7 million as the surrounding shopping center is completed.

The new Costco Wholesale will anchor Baseline Marketplace and is likely to be a catalyst for other major retailers to move into the area, DeVore said, bringing much-needed retail to the 25,000 homes in the area.

Mike DeBrota, a representative for Costco Wholesale, said the project was progressing through the permitting process and construction could begin as early as this winter. While he told the City Council on Wednesday that there wasn’t a firm timeline for opening, he said residents could anticipate the warehouse to open in late 2024 or early 2025.

Once the infrastructure is completed, the warehouse will open “as quick as we can because we know the public likes Costco,” DeBrota said.

“On behalf of the residents of west Roseville, thank you,” said City Councilman Scott Alvord, who represents west Roseville. “This is such a great quality of life improvement for the people on the west side who have to go into town to get anything. This is really, really exciting and I know the residents are going to be super jazzed.”

The new Costco will have a 160,000-square-foot warehouse as well as a gas station and car wash.