The Loveland City Council is set to consider a proposed business assistance agreement that could bring a Costco to the city. The deal, first reported by BizWest, would allow Centerra developer Realberry to construct an 18-acre retail center anchored by Costco at the northeast corner of U.S. Highway 34 and Centerra Parkway. If approved, this would be Northern Colorado's second Costco location. The agreement includes a 1.25% sales tax rebate for Realberry to help fund the project, with bond proceeds capped at $25 million or 25 years, whichever comes first. The rebate proceeds will also cover Realberry's design, financing, and construction of public improvements, excluding a connection between Kendall Parkway and Sky Pond Drive. Realberry will sell 18.75 acres to Costco for $10, develop an 850-space parking lot at its own expense, and contribute $10.6 million towards Costco's infrastructure costs. The parcel, located 8 miles south of the existing Timnath warehouse, is currently an underutilized site. Approval of the agreement would transform it into a major regional shopping destination, featuring Costco and additional retail, food, beverage, and service uses. Costco's estimated annual property taxes would be $743,000, including $68,000 to the city of Loveland and $78,000 in gas sales-related collections. The development is expected to bring 400,000 square feet of new commercial space in two phases, with the Costco warehouse occupying 160,000 square feet. Infrastructure construction is set to begin at the end of 2026, followed by vertical construction in late 2027, with tenants opening in early 2028. This would be Northern Colorado's second Costco, joining the Timnath warehouse that opened in October 2014. However, Costco has not publicly announced Loveland as a future location, and the retailer typically doesn't comment on future warehouses until they are ready to share details.
