Development of a Costco store in north Redding took a significant step toward reality Tuesday when the Redding City Council voted unanimously to OK an agreement to reimburse the big-box retailer for improvements to the site at the intersection of Oasis Road and Twin View Boulevard.
The improvements, including the widening of Oasis Road, the realignment of Twin View Boulevard and the purchase of right-of-way agreements, will cost Costco an estimated $5.4 million, according to Redding Public Works Director Brian Crane.
Under terms of the credit and reimbursement agreement, Costco would be credited $4.1 million from the North Redding Traffic Benefit District. The $4.1 million is the amount of development impact fees Costco would be expected to pay the district, which was formed in 2007 with the goal of developing the Oasis Towne Center project.
In his report to the council, Crane said the city would pay Costco the remaining $1.2 million in installments spread over 10 years.
In a separate 4-0 vote (Councilmember Missy McArthur was absent), the council authorized a $778,000 contract with Kier & Wright Civil Engineers and Surveyors to design and manage the road improvement projects.
Costco is negotiating the purchase of the Oasis Road property from the Levenson Family Trust. Redding attorney Walt McNeill, who represents the Levenson family, said he spoke with the principal members of the trust on Tuesday.
“They said they strongly support the reimbursement agreement and encourage the city and Costco to move forward” and get construction underway as soon as possible, McNeill said.
The idea of a larger Costco in north Redding as part of a 300,000-square-foot shopping center dates back to 2006 when developer Don Levenson was first granted approval for the project. The existing Costco store on Dana Drive was deemed to be undersized almost from the minute it opened in April of 1990.
Crane said construction of the improvements to Oasis and Twin View would begin in 2014.
Jon Lewis is a freelance writer living in Redding. He has more than 30 years experience writing for newspapers and magazines. Contact him at email@example.com.