Issaquah, Wash.-based retailer Costco Wholesale is in talks to build a new warehouse on 4.75 acres north of Vista Murrieta High School.
The land is owned by CK-17 LLC, a company formed by the developer, Allan Davis, who built The Orchard shopping center at the northwest corner of the Clinton Keith Road interchange.
In 2016, Davis’ development team secured permission from the city to build a sister center called The Vineyard on the other side of the freeway. That center, slated for 16 acres at the northeast corner of the interchange, could include a 91-room hotel, drive-thru restaurants, a bank, supermarket and commercial retail.
According to the agenda for Tuesday’s Murrieta council meeting, CK-17 will transfer a 4.75-acre portion of its land to Costco for a warehouse if the the city agrees to pay for some of the costs associated with building Warm Springs Parkway, a new road that will serve as the main entrance to the The Vineyard from Clinton Keith.
I wish they had a Costco in Murrieta because I would go there everyday for the outside food
— Grace Arnold (@gracenarnold) May 25, 2015
The city’s share of the road could end up costing around $1.6 million, according to a fiscal analysis prepared by staff, which the city can cover via a combination of developer impact fee credits, general fund dollars or reprogrammed capital improvement project funds.
Municipalities are generally agreeable to these sort of arrangements due to the amount of sales tax revenue a big box retailer such as Costco, which has locations in Temecula and Lake Elsinore, can generate.
A Costco spokesperson this week said the company does not comment on future warehouses until it is ready to share details about a new location on its website, which is generally updated two or three months ahead of a store opening.