The Midland Development Corporation (MDC) board will meet on Aug. 12 at 10 a.m. to discuss a development project involving the City of Midland and Costco Wholesale Corporation.
The agenda item is the approval of a Chapter 380 and performance agreement that will pave the way for the construction of a new Costco facility in West Midland. The proposed Costco will cover 174,000 square feet and represent a $50 million capital investment in the area, creating 100 full-time equivalent jobs.
The agreement outlines the financial commitments of both the MDC and the City of Midland. The MDC will reimburse up to $6,502,544 for infrastructure and site improvements associated with the Costco development. This reimbursement will be distributed in two phases: $2,167,544.67 upon the completion of construction, and another $2,167,544.67 after Costco certifies the creation and maintenance of 100 full-time jobs in Midland for at least one year. As a Type A corporation, the MDC is authorized to fund infrastructure and site improvements necessary to develop business enterprises.
The City of Midland will also play a role in supporting the project. The city will agree to rebate 50% of its portion of real and personal property tax revenue for 20 years following the issuance of a certificate of occupancy for the Costco facility. Additionally, the city will rebate half of the total local sales and use tax receipts generated by the store for 30 years and will provide a one-time rebate of development and building permit and inspection fees.
Construction of the Costco is scheduled to begin on or before June 1, 2025, with completion expected by Aug. 31, 2026.