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costco wholesale corporation

. . Costco Wholesale. Building size is approx. 142,000 square feetProperty is on approx. 16.6 acres with approx. 44 acres adjoining property for commercial development. Local Benefits . Increase in employment rateProperty tax revenue increaseSales tax revenue increase. Employment Benefits. Approximately 125-150 jobs created at Costco with potential for more jobs as other businesses develop in adjoining propertyMost employees eligible for benefits during first year of employmentHourly wage9445

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costco wholesale corporation

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    1. Costco Wholesale Corporation “Project Hilltop”

    3. Costco Wholesale Building size is approx. 142,000 square feet Property is on approx. 16.6 acres with approx. 44 acres adjoining property for commercial development

    4. Local Benefits Increase in employment rate Property tax revenue increase Sales tax revenue increase

    5. Employment Benefits Approximately 125-150 jobs created at Costco with potential for more jobs as other businesses develop in adjoining property Most employees eligible for benefits during first year of employment Hourly wage range - $11.00 to $21.70 for cashier positions

    6. Sales Tax Benefits Estimated Costco property value = $29,000,000 First year projected revenue (SPLOST + LOST) = $1,500,000 10 year total projected revenue (SPLOST + LOST) = $21,573,415

    7. Property Tax Benefits Estimated Costco property value = $29,000,000 First year projected revenue = County - $256,766; City - $75,400 10 year total projected revenue = County - $2,567,660; City - $754,000

    8. Approximate 10-Year Benefits

    10. EDA Obligations Mass grading of Costco site Construction of offsite detention facility Construction of ring road Payment of Costco broker fees

    11. Site Completion Completion date is May 24, 2010 Roads and traffic signals have to be finished by July 29, 2010 Costco construction time of 110 days from May 24, 2010

    12. Bids 28 companies obtained bid packets; 6 bidders Bids range from $3,041,745.00 to $6,600,000 being the highest The Wright Brothers have placed the lowest bid and negotiated down to $2,995,960

    13. Costs

    14. Debt Repayment Combination of sales tax and property tax

    15. City/County Cooperation Catoosa County, the City of Ringgold, and the City of Fort Oglethorpe will pay off the debt of $4.6 million through property and sales taxes If Costco makes at least 50% of sales projection, the debt will be paid off in 5 years.

    16. No negative impact on property taxes Any millage rate adjustments required for the project are offset by increased sales tax revenues

    18. Approval Requests Board of Commissioners Adopt a resolution to authorize the EDA to go forward with the project Authorize the EDA to borrow up to $4.6 mil. to fund the project Enter into intergovernmental agreement with Ft. Oglethorpe and Ringgold Pooling revenues to pay debt

    19. Approval Requests Cont. Adopt an abandonment resolution for excess right of way on Scruggs Rd EDA Approve resolution authorizing transaction Approve same two intergovernmental agreements as Board Approve bid of Wright Brothers Construction Approve contract with Wright Brothers to issue notice to proceed

    20. Approval Requests Cont. EDA Approve a contract with Miller-McCoy for engineering Approve site development and acquisition agreement with Armour & Fowler Execute Note and Security Deed to Armour & Fowler to owner finance property Borrow $4.6 million to do site work Approve Costco Agreements

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