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City Council approves plans for East Lansing Costco

December 7, 2016
<p>Renderings of a planned Costco in East Lansing.</p>

Renderings of a planned Costco in East Lansing.

After an hour and a half of public hearings and lengthy discussions, East Lansing City Council unanimously approved the site and brownfield plans for a Costco Wholesale in the city.

The 157,000 square-foot warehouse will be located at 5800 Park Lake Road, at the location of the former Four Winds Golf Course.

While the public hearing and written communications were largely supportive of the plan, the council was most concerned with the brownfield plans, a type of tax increment financing, or TIF, that gives developers incentives to build on previously used spaces. City Council approved a plan of approximately $1.5 million, which will be reimbursed through specific taxes.

Councilmember Shanna Draheim said at the meeting she supported the TIF because it covered costs that were beneficial to the city. Some of those included site improvements and roadway improvements.

The decision was complicated because of all the issues at play, she said.

“These are real and complicated issues,” she said. “Every time we think about a TIF, we have to balance these issues out.”

Currently, the city is collecting approximately $8,000 in property taxes on the site. With the Costco in place, it will collect $40,000 in property taxes.

Mike Stratis, a Costco site selector, said at the meeting the company does not often ask for TIFs or other incentives unless they are necessary.

“Costco has what I would describe as a socially responsible approach to incentives,” Stratis said. “That basically means they only ask for them when they need them. ... This transaction is the most expensive Costco we’ve done in the state of Michigan. The only incentives that are actually viable in Michigan are brownfield incentives.”

The council also pushed for the site plan to include more bike-friendly options. They approved the site plan with an amendment that allowed for “up to 50 bike racks and interior storage to be installed” so employees and customers can consider biking to the warehouse.

The plans were approved to encourage a large retailer and potential asset to come to the city, as both tax revenue and interest from people outside the community.

“I call Costco the Disneyland of retail,” councilmember Susan Woods said at the meeting. “People want to come to Costco. They’ll travel — we travel ... all the way to Ann Arbor just to go to Costco. Now they’re going to come to us and maybe go downtown and have dinner or lunch, go to a game and Costco.”

Site plans must now be approved by Meridian Township's planning department. Once approved, the plan can take action. The project is set to be completed by fall 2017.

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