Cities hoping for increased tax revenues from the addition of Costco to their retail mix will have to expect to pony up a considerable amount of money for the privilege of hosting the store. According to a recent article in the Dallas Morning News, the retailer, whose annual sales are now at $116.2 Billion, asked the city to give them an “economic development” grant (that’s right, an outright grant, not a loan), of $3 million in order to locate the first Costco in the Dallas city limits.
“According to the just-posted agenda for Monday’s meeting of the Dallas City Council’s Economic Development Committee, the city’s Office of Economic Development will ask the council to approve a Chapter 380 economic development grant “not to exceed $3,000,000″ on May 11. It’s also likely to come up at Monday’s meeting — given both the size of the request and some council members’ concerns that a company that made a profit of more than $2 billion last year needs “a sweetener” to come to Dallas,” the article states.
The city council members believe that without handing over this blackmail, they will never see a Costco in their city. There is no mention about their projections for what the city will receive in return. They just seem to care about their bragging rights and pleasing their Costco members and those who want to have the opportunity to spend large amounts of money on large amounts of goods.
See the full article here.