Council approves performance-based incentive for Costco second warehouse; $3.18 million cap

The St. George City Council approved Resolution 2025-001R to enter a performance-based incentive agreement with Costco Wholesale Corporation for a second warehouse location in the city.

Chad, representing the economic development department, told the council the proposed incentive is performance-based over a 10-year period and would defer certain building permit fees, impact fees and other public infrastructure costs related to the project, not to exceed $3,180,000. Chad said the company must meet specific benchmarks to be eligible and staff’s analysis shows a positive return on investment to city revenue during the performance period. He also noted Costco is an existing local company with a record in the community and that the agreement would authorize the mayor to execute the finalized contract.

Councilmember Steve Kemp moved to approve the resolution and authorize the mayor to sign once finalized; Councilmember Natalie Larson seconded. The council conducted a roll-call vote: Natalie Larson, yes; Jimmy Hughes, yes; Michelle Tanner, no; Steve Kemp, yes. The motion passed 3–1 and the resolution was adopted.

During discussion Councilwoman Michelle Tanner said she supports Costco but objected on principle to offering incentives to a large national company without the same level of support available to small local businesses. Staff said the incentive is structured as a deferral tied to performance and not an outright waiver. The council authorized staff to finalize and implement the agreement terms.