In a recent Midland City Council meeting, officials discussed a significant economic development initiative involving a tripartite agreement with Costco Wholesale Corporation. The proposed agreement aims to facilitate the construction of a 174,000 square foot Costco facility in West Midland, which is expected to enhance the local economy and provide a much-anticipated retail option for residents.

Planning and Development Officer Elizabeth Chiggs presented the details of the Chapter 380 agreement, emphasizing that the new Costco would be one of the larger facilities in Texas, surpassing the size of the nearest location in Lubbock. The project is projected to attract a substantial customer base, as data indicates that approximately 12,000 Midland residents currently travel to Lubbock annually to shop at Costco.

The agreement stipulates that Costco must invest a minimum of $50 million in the development and create at least 100 full-time equivalent jobs, which must be maintained over a 30-year incentive period to qualify for city rebates. The city will provide property and sales tax rebates, which are contingent upon the project's success and the creation of jobs.

Chiggs highlighted the strategic importance of the Costco location, noting its potential to generate new tax revenue for Midland and surrounding areas. The facility is expected to serve as an anchor for further development in a high-growth corridor, enhancing the quality of life for residents and attracting visitors from neighboring regions.

The timeline for the project is ambitious, with construction slated to begin by June 1, 2025, and completion expected by August 31, 2026. The city and the Midland Development Corporation (MDC) are collaborating to ensure the necessary infrastructure is in place to support the new facility.

Mayor of Midland noted that the community has long expressed a desire for a Costco, making this development a significant step towards meeting local demand. The partnership between the city and the MDC is seen as crucial in mitigating risks for Costco and ensuring the project's viability.

Overall, the proposed Costco facility represents a pivotal opportunity for Midland, promising to bolster the local economy, create jobs, and enhance the retail landscape for residents.