Elk Grove residents have been asking for updates on the proposed Costco for weeks. The proposal was originally approved by the City Council last year. Last fall rumors started circulating that Costco and/or the developer Pappas Investments were seeking incentives for the development. Since then more rumors have come up that Costco may pull out of the deal.
In an online notice for a public hearing, the city has announced that there is consideration for a sales tax sharing development agreement that will pay the developer $8 million over 25 years. No word yet from the city on how much the city would benefit from the additional sales tax revenue. We have an email into the Elk Grove Development Department requesting more information. The City Council will hear the proposal at it’s next meeting on Wednesday, April 12 at 6 pm.
The city has previously granted incentives to Pappas for helping to relocate the State agency, California Correctional Health Care Services to Elk Grove. The city paid $1.9 million to the state for moving expenses and equipment and $1.4 million in incentives to Pappas in an agreement that was approved by the City Council in September 2011.