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Tucson council approves next step for Costco sales‑tax incentive; flags Old Vail Road infrastructure
Summary
Council authorized staff to accept the application fee and start a third‑party economic analysis for a site‑specific sales‑tax incentive for a proposed Costco near Old Vail and Houghton, while urging the developer and staff to address Old Vail Road capacity and ADA concerns.
Council authorized staff on Nov. 18 to move forward with a primary‑jobs site‑specific sales‑tax incentive process for Costco Wholesale’s proposed 158,000‑square‑foot warehouse near Old Vail and Houghton Road. Economic development staff requested direction to collect a $5,000 application fee and commission a third‑party economic analysis to inform any future development agreement.
Councilmember Lane Lee, whose ward includes the site, spoke in favor of the project and the motion but raised infrastructure concerns: "This store is built on a two‑lane road that is not properly ADA accessible in a rural‑suburban portion of the city," she said, urging coordinated infrastructure investment to support the development and the surrounding area.
The motion instructs staff to proceed with the application process; no funds will be reimbursed until the project is built and the certificate of occupancy is issued, city staff said.
Next steps: staff will commission economic analysis and return with details that would inform any incentive agreement; council asked staff and the developer to coordinate on long‑term road improvements to Old Vail Road.
