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The much-anticipated coming of Costco to Logan is officially in the works.

The Logan Redevelopment Agency has a public hearing scheduled next Tuesday to consider $1.4 million in infrastructure cost relief for the wholesale/retail giant to locate on property owned by Blue Spring Business Park along 10th West between 1000 and 1200 North.

The business park, developed by Al’s Sporting Goods owners Chris and Jason Larsen, already has two large industrial buildings under construction, and in conjunction with Costco the property will have a number of adjacent business pads.

In addition to the RDA incentives, the Logan Municipal Council on Tuesday will conduct a public hearing to consider a development code change allowing big-box stores and certain other businesses in the city’s industrial zone, provided they get a conditional use permit. The business park is in the industrial zone.

“We’re doing minor modifications to the code,” Mayor Holly Daines said about the proposal. “It will still be the industrial park area. It won’t be just every little thing that could come there, but if the code amendment is approved by council then it would allow big-box type retailers over a certain square footage. The code already does allow food in that area, so that’s not a change. It already does allow financial institutions and gas stations.”

To consider the proposed financial incentives for Blue Spring, the council on Tuesday will change hats and act as the Logan RDA Board.

The resolution put before the board notes that the proposed Costco wholesale warehouse would “contribute significantly to the achievement of the city’s economic goals, including: the expansion and enhancement of road and utilities infrastructure, strengthening the city’s tax base through the construction of an approximately 165,000 square foot Costco and adjacent business pad sites, estimated to generate more than $160 million in gross annual sales, generate more than 150 new jobs and be a catalyst for additional development in the area.”

Daines said because of the perceived benefits to the city, her staff has been working with Costco for some time to find a suitable site in Logan, and when the company showed interest in the 10th West property, city officials worked with Blue Spring to adapt their business park plan and acquire additional property for the project. That property was part of a larger piece of land along 10th West owned by the Church of Jesus Christ of Latter-day Saints.

“You bend over backwards to try and help them because they will produce a lot of sales tax revenue for the community,” Daines said, noting Logan also plans to waive impact fees on the project.

The mayor touted the location as ideal for a business like Costco, which offers wholesale products to members much like Sam’s Club, and city planners see it as a way to draw people to that part of town.

“Initially they were looking at Main Street, but 10th West seemed like a perfect location because it provides great access for trucks, easy public access, and there’s a traffic light, which was one of their requirements,” Daines said.

According to Wikipedia, Costco as of 2020 was the fifth largest retailer in the world, and in 2021, it ranked No. 10 on the Fortune 500 rankings of the largest United States corporations by total revenue.

Pay at the chain’s outlets is higher than many other national retailers. In February, company CEO Craig Jelinek announced Costco was raising its minimum starting hourly wage from $15 to $16. USA Today quoted Jelinek as saying the company’s average wage for hourly workers is around $24 per hour.

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