Port St. Lucie council approves incentive package, impact-fee mitigation for Costco depot phase 2

The Port St. Lucie City Council on April 14 unanimously approved an economic development incentive package and a companion impact-fee mitigation agreement for Costco Wholesale’s Phase 2 depot at Legacy Park in Tradition.

The measures approved include a tiered ad-valorem tax exemption over a 10-year period and impact-fee mitigation that provides up to $3,500 per new job created. City staff told the council the company expects to create 115 new jobs as part of the expansion, and the project represents a combined capital investment the presenters placed at roughly $113.4 million, including construction and machinery and equipment.

The incentives drew a formal presentation from Katie Knight, business development director for the Economic Development Council of Saint Lucie County, who described the proposal and economic projections. “Phase 2 expansion consists of over a 1,000,000 square foot facility beside the phase 1 which is a 600,000 square foot facility…combined $113,400,000 in capital investment,” Knight said during her presentation. Elijah (staff member) summarized the staff recommendation, saying, “staff does recommend approval of the incentive package.” Greg Capone, speaking for Costco, added, “I’d just like to thank the council and everyone involved as well.”

Why it matters: City and county officials said the project will bring construction activity, long-term payroll and jobs that pay above the county average. The council’s approval authorizes the mayor or her designee to execute the incentive and mitigation agreements and allows the company to seek the permits and fee adjustments described in the agreements.

Key terms and numbers discussed in the meeting

- Investment and jobs: presenters described a combined capital investment of about $113.4 million (including roughly $94 million in construction and $15 million in machinery and equipment) and projected annual payroll in the millions. City staff stated the project anticipates creating 115 new jobs. - Tax exemption: the council approved a tiered ad-valorem tax exemption over a 10-year period; presenters described it as higher in the early years, reduced in mid- and later years (the presentation characterized the tiers as 60% in the early years, then 40%, then 20% later in the 10-year schedule). - Impact-fee mitigation: the mitigation provides up to $3,500 per new job, which staff calculated as about $402,500 available; presenters said the projected impact mobility fee for the development is $513,333, leaving a balance due when permit fees are paid. - Job schedule and reporting: staff outlined a job-creation schedule (85 new jobs in year one, 15 in year two and 15 in year three) and noted an annual reporting requirement; if job targets are not met, refunds or clawbacks apply as described in the agreement.

Council response and vote

Councilmembers spoke in favor of the package, highlighting the higher-than-average wages and the expected local economic activity. No public comment was offered during the public hearings for these items. The council voted unanimously to approve Resolution 25-R17 (economic development incentive package for Costco Depot Phase 2) and Resolution 25-R18 (impact fee mitigation agreement). City staff recommended approval of both measures and will proceed with executing the agreements as authorized by the council.

Votes at a glance (items approved at the April 14 meeting)

- Ordinance 25-14 (Gatlin Commons PUD ninth amendment) — approved (second reading). - Ordinance 25-15 (rezoning of 0.46 acre south of SW Medlock Ave to highway commercial) — approved (second reading). - Ordinance 25-16 (utility easement to Florida Power & Light for portion of Parcel 3, Stars and Stripes in the Park) — approved (second reading). - Ordinance 25-18 (amendments to Title 3, Chapter 37 Special Magistrate) — approved (first reading/public hearing held). - Ordinance 25-19 (abandonment of 20-foot rear utility and drainage easement affecting Lot 19, Block 1720) — approved (first reading/ public hearing held). - Ordinance 25-20 (authorization to issue not-to-exceed $35,000,000 general obligation refunding bonds, Series 02/2025) — approved (first reading); staff stated this refunding is projected to generate over $1 million in debt-service savings over the next 10 years and does not extend the bond term. - Ordinance 25-21 (amendment to Section 100.07 creating/amending Affordable Housing Advisory Committee provisions) — approved (first reading/ public hearing held). - Resolution 25-R15 (Local Housing Assistance Plan submission under the State Housing Initiatives Partnership Program Act) — approved. - Resolution 25-R16 (amendment to locally funded FDOT agreement for design services on Port St. Lucie Boulevard reconstruction) — approved. - Resolution 25-R17 (Costco Wholesale Depot Phase 2 economic development incentive package) — approved unanimously. - Resolution 25-R18 (Costco Wholesale Depot Phase 2 impact-fee mitigation agreement) — approved. - Resolution 25-R19 (final acceptance of public roadway improvements for Tradition Parkway Phases 1–3 and Fern Lake Drive by Mattamy Homes LLC) — approved. - Resolution 25-R20 (maintenance agreement between Riverland Community Association, Inc. and the City for landscaping/irrigation/hardscape within specified right-of-way) — approved.

What happens next

Council authorization allows the mayor or her designee to execute the incentive and mitigation agreements and for staff to continue with required annual reporting and permit processes. The mitigation agreement identifies the funding sources for impact-fee mitigation as the Tradition economic development fund and proceeds from land sales by the government finance corporation; staff noted a remaining balance due when permit fees are paid.

Sources and attribution

Presenters and speakers quoted or named in this article are drawn from the April 14 Port St. Lucie City Council meeting transcript: Katie Knight, business development director, Economic Development Council of Saint Lucie County; Elijah (staff member); Greg Capone (on behalf of Costco Wholesale Corporation); Mayor Shannon M. Martin. Other councilmembers spoke in support during council discussion but were not named in the transcript comments included here.