Costco preps former Richland orchard to build long-awaited 2nd Tri-Cities store
Costco Wholesale is getting ready at a former orchard in Richland to build its second Tri-Cities store.
The Issaquah-based warehouse giant already has moved construction equipment to the site, after finalizing a long-term lease this week for the nearly 30 acres with the Washington Department of Natural Resources.
Ryan Rodruck, spokesman for the state agency, confirmed the deal is final and that Costco placed equipment on the property at 3125 Queensgate Drive. DNR manages state-owned lands to benefit public education.
On Friday, an excavator, water tank and several bulldozers were sitting idle on the site, though there was no visible activity.
That will change soon..
The city of Richland issued the relevant permits for grading and utility work on Oct. 31. The building permit has been approved and will be issued once the grading of the land and utility work is started.
Jon Amundson, Richland’s city manager, called it a “momentous occasion” and said the city is thrilled to welcome Costco to town.
“We are incredibly excited to see construction begin right away,” he told the Tri-City Herald. “This new store will bring more shopping options to our residents and generate significant economic growth and job creation for our community.”
Lease supports school construction
Rodruck said Costco’s lease includes a 25-year initial term and options to extend to 55 years.
Costco initiated negotiations with DNR in June 2023, when it submitted a letter of intent, offering to lease the Richland property.
Final terms aren’t yet known, but in its initial offer, Costco proposed lease payments totaling $12.2 million in the first 25 years, plus annual leasehold taxes.
Rodruck said the Costco property is dedicated to helping pay the state’s share of new school construction costs.
A Costco spokesman said company does not comment on new locations until they’re ready to open.
The Tri-City Development Council welcomed Costco’s investment in a new store.
“More shopping, dining and entertainment options makes our community an even better place to live, work, visit and do business,” said Karl Dye, president and CEO of the region’s economic development agency.
32 gas pumps
The main store will be 182,700 square feet and cost about $25 million to build, according to building permits.
In addition to the store, Costco has applied for permits to install various signs and a 12,300-square-foot fueling station with 32 positions, canopies and underground fuel tanks.
The gas station has a construction value of $2.2 million and its own address, 750 Kingsgate Way.
Lydig Construction is the contractor, permit records show.
Trader Joe’s, Costco, Chick-fil-A
Tri-Citians have long asked for a second Costco Wholesale store, ranking it second only to Trader Joe’s in a 2023 survey of Herald readers.
The Kennewick Costco is considered “overburdened,” too small to serve the 316,600 — and counting — people who call the Tri-Cities home.
For a time it appeared Costco would build in Pasco’s Broadmoor area. It walked away from that deal for reasons that have not been publicly confirmed.
Trader Joe’s remains a pipe dream. But in a happy coincidence, Tri-Citians are seeing two of their wishes fulfilled this week.
Atlanta-based Chick-fil-A, which placed third in the 2023 survey, secured a building permit Nov. 7 — one day after the Costco land lease was finalized — for its first Tri-Cities location.
Chick-fil-A will be built at 7009 W. Canal Drive, near Columbia Center mall.
The future Costco is near the Target-anchored Vintner Square and Regency Apartments in the Queensgate area. The property is on Truman Avenue, between Kennedy and Queensgate Drive.
This story was originally published November 8, 2024 at 3:44 PM.