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Economic-development leaders outline $21.5M incentive for Costco-anchored project; commissioners press for safeguards
Summary
Economic Development Council president Bud Dillinger described a master-planned 220-acre project anchored by Costco with a proposed $21.5 million incentive paid via the Industrial Development Board over 10 years tied to sales thresholds; commissioners questioned current tax receipts, revenue projections and traffic impacts.
Bud Dillinger, president of the Economic Development Council, presented the concept for a master-planned development anchored by Costco and requested that the commission authorize a contribution agreement to the Industrial Development Board tied to the project.
"I'm Bud Dillinger, the president of the Economic Development Council," he said, then described the incentive structure: "It's over 10 years. It's $21,500,000 but it's 2,150,000 a year and 3 conditions have to be met... The first payment doesn't occur until they hit 172,000,000 in sales." Dillinger said the typical Costco has annual sales around $250,000,000 and that the project could produce roughly 600 new direct jobs and additional indirect jobs. He emphasized that payouts to the IDB would be tied to collected sales tax, saying the county would not be asked to pay the incentive before the tax revenue existed.
Commissioners pressed for detail. One commissioner noted the parcel's current property tax was "less than 5,000" because it is in green-belt status and asked for estimates of future sales and property tax; Dillinger estimated multimillions in annual tax revenue at full buildout and described planned internal roads, a multi-phase traffic study already funded, and engagement with T-DOT for future interstate access improvements.
The resolution authorizing the contribution agreement (Resolution 2688) remained on the consent agenda during this meeting and was discussed but not recorded as a separate vote in the transcript. Commissioners asked about safeguards and callbacks in the agreement and about the timing of payments relative to tax collection; Dillinger said protections are in place so no contribution occurs before qualifying sales taxes are remitted.
