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Thursday, January 21, 2010

South-side Costco seems a sure thing

South-side residents could be shopping at a new Costco Wholesale by March 2011, after development plans for the site were approved by the city last week. The developer - Eastbourne Investments Ltd. and Retail West - still need city approval for grading and building plans, but both sides anticipate final construction approval by March.

Costco representatives did not return calls for comment on Monday. But Cindy Ayala, president of the nearby Pueblo Gardens Neighborhood Association, who was involved in talks with the company, said she was told opening is planned for March 2011, a date that was confirmed by other sources.

The new Costco - the third in the Tucson region - would be on 14 acres at Interstate 10 and South Kino Parkway. It is part of a larger commercial project that would cover about 115 acres from I-10 and Kino west to South Park Avenue. The other Costcos are at East Grant Road near East Tanque Verde Road, and off North Thornydale Road near West Orange Grove Road.

That retail "power center" is the anchor of a larger 350-acre project called "The Bridges," bounded roughly by I-10, East 36th Street, Park and Kino. In addition to a retail development, plans for the site include a 65-acre biosciences park to be developed by the University of Arizona at Kino and East 36th Street, and 110 acres for an upscale housing development.

The new Costco would measure 180,000 square feet, which is a "big-box" under Tucson code that classifies every store of more than 100,000 square feet as a big-box store that has to follow special rules.

After years of city debate about the property, the City Council voted 6-1 in March 2007 to allow a big box on site, but with extra conditions put on Eastbourne, including $2 million to pay for job training, business-assistance programs, neighborhood improvements, economic-improvement grants to area nonprofit organizations, and improvements for pedestrian access and roads. That money will be matched with $4.5 million the city expects from construction sales taxes at the site.

Jim Portner, a consultant for the project's developers, said the 14 acres will be sold to Costco after the final construction permits are obtained from the city. The remaining retail will be developed by Eastbourne and Retail West, he said, although there are no other stores currently signed on to move in. Portner said he expects interest to perk up once the Costco is under construction.

Developers said they are in talks with another major retail anchor but wouldn't name it, although there has been significant behind-the-scenes speculation a Walmart is coming.

The developers are doing several types of infrastructure work on the site, Portner said, adding that the county is doing major sewer line work as well. Ernie Duarte, city director of planning and development services, said he hopes the final permits for the project can be issued in March. Portner said that despite recent criticism charging the city is anti-business, the city has been a key partner.

"Our experience has been absolutely the opposite," Portner said. "It's really helped make a very clear review process." Although the project was finally approved by the council in 2007 after years of discussions, construction work was later delayed by county flood-control work that needed to be done on-site.

The new Costco can't come soon enough for local residents, including Ayala, who said the store will bring shopping and jobs to the south-side area. "The neighbors are all supporting this as something that we need," Ayala said. "Where the other Costco is, it's a pain. This is great. It's good for this side of town's economy."

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