Costco clears final hurdle; eyes late 2025 opening

OTSEGO — Plans for a Costco Wholesale store in nearby Otsego have cleared the last significant hurdle, setting the stage for the retailer to possibly open as early as late 2025.

The Otsego City Council voted 4-1 at its July 8 meeting to approve several items related to the development.

“Costco has all their approvals to proceed with the development,” Otsego City Planner Dan Licht said in an email following the meeting. “The only remaining step is approval of a development contract that provides for securities to complete the public improvements, which is a formality likely to be considered at a future City Council meeting as a consent agenda item, as is typical practice.”

Costco is looking to build a 164,000-square-foot store at the northwest corner of 60th Street and MacIver Avenue, near Interstate 94 and the City of Albertville.

Licht said Costco would like to start site grading this year with store construction in 2025 for an opening later that year. However, road construction in the area could affect the timeline.

Stephen Cross of Cross Engineering and Associates, representing Costco, said the store opening is dependent on when Wright County gets improvements to 60th Street completed.

“We would like to open toward the end of 2025,” Cross said. “But if the road is still under construction, then we probably would not open until that road is complete.”

60th Street runs along the south edge of the parcel where Costco plans to build.

Improvements to 60th Street, also known as County Road 137, were already planned to occur prior to Costco’s proposed development coming forward, Licht said.

“Costco is happening as a result of this project, not vice versa,” he said.

Wright County received a federal grant for the project and is also utilizing funds generated by a county sales tax dedicated to improvement of transportation infrastructure within Wright County, according to Light.

“Having a Costco at this location will help generate additional sales taxes for this purpose, including from people outside of Wright County,” he said.

Minnesota currently has 13 Costco stores, with the closest locations to Monticello currently in Maple Grove, Coon Rapids and St. Cloud — all at least 25 miles away.

The members-only stores sell everything from groceries, appliances and electronics to tires, toys and sporting goods. A typical Costco has 150 to 200 full- and part-time employees.

In addition to the warehouse store, plans for the Otsego Costco site also include a gas station with 16 pumps (32 fueling dispensers), all under a canopy. A future expansion could add four more pumps.

The gas station would be for members only and offer gas but not diesel.

The 25-acre site Costco plans to build on includes a large lot for Costco as well as two smaller commercial lots that are 1.3 acres and 1.75 acres in size.

“It is intended the (two smaller) lots will be marketed and sold for future commercial uses permitted in the B-3 zoning district,” according to Costco’s application.

However, Costco has also indicated their intent to retain ownership of the two lots until their store is established and they are satisfied that there are an adequate number of parking stalls for the Costco store, according to city documents.

Vote was 4-1

The Otsego City Council voted earlier this month to approve a final plat, conditional use permit and site and building plans for the Costco development. Voting in favor were Mayor Jessica Stockamp and council members Jeff Dahl, Brittany Moores and Tina Goede. Council Member Ryan Dunlap voted against.

“I think the traffic generated by this proposal is clearly a concern,” Dunlap said.

He said more information was needed regarding the traffic issues and asked that the plan be reworked to alleviate traffic concerns.

The Costco site, meanwhile, was once used as a landscape nursery for Midwest Landscapes. Love’s Travel Stops and Country Stores explored development of a truck stop there in 2017, but that did not materialize.

Currently, Emma’s Express and a cemetery are located to the south of the site, townhouses are to the east, commercial and industrial uses are to the west and Albertville’s wastewater treatment facility is to the north.