Story Details

Costco Announces Location of a Major Distribution Center

News Release
June 09, 2005

Salt Lake City, Utah - Utah Governor Jon M. Huntsman, Jr., and officials from Costco have announced plans for construction of a major distribution center in Salt Lake City, Utah. "This decision is further confirmation of Utah's position as the 'crossroads of the West' which is one of the key elements of our economic development positioning efforts," said Governor Huntsman.

Costco will be the primary tenant in a new, three-million square foot business park near 5600 West and 300 South in Salt Lake City. Costco, which did not receive any incentives for the project, has already begun construction and plans to have Phase I complete by November 2005. The company selected the Utah site from more than 30 potential locations through the Intermountain West. "After considering several states in the West, we were favorably impressed with Utah's labor force, transportation infrastructure and the operating cost environment," said Peter Kahn, Costco Director of Real Estate and Development.

The following revenue projections are based on 210 "direct" jobs at Costco and 160 "indirect" jobs from Costco suppliers and Costco employee spending, totaling 370 jobs:
  • State and local revenue: $1.8 million per year
  • State revenue: $1.0 million per year, including: $500,000 income tax; $300,000 sales tax; $200,000 other revenue
  • Local revenue: $800,000 per year; including: $500,000 property tax paid directly by Costco; $100,000 additional property tax paid by Costco employees and suppliers; $75,000 sales tax; $125,000 other revenue.
Some of the details of the Costco distribution center project include:

Total Project site area: 63 acres
Total Project square footage: 470K SF
Capital Investment $40 M

  • Phase I site area: 40 acres
  • Phase I square footage: 300K SF
  • Phase II site area: 23 acres
  • Phase II square footage: 170K SF
  • Initial jobs created: 175
  • Jobs at full build out: 210
  • Distribution to Colorado, Utah, Idaho, and Montana
  • Fifth top retailer in the U.S, as of July 2004
  • Costco Corporation Sales: $49.16 Billion
  • Total Costco Employees: 113,000

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