Costco, Meritage mum on Valley

WASILLA — City Planner Jim Holycross said it’s only speculation at this point that bulk retail giant Costco will be moving into Wasilla.

Holycross responded Monday to reports that the Issaquah, Wash., based wholesaler’s name appears as a possible tenant for a proposed building in the yet-to-be-built Creekside Town Square. The Costco connection appears in a site plan presented at a recent pre-application meeting with the Mat-Su Borough and Meritage Development LLC, which is developing Creekside.

“They’re doing due diligence to see if they want to come here or not,” Holycross said, adding that being named on the site plan doesn’t mean there are any commitments or deals in place.

Jim Wood, a commercial broker with Meritage, would only offer to give a number for Costco Monday, saying Meritage is not commenting about any potential deals with the company.

David Weisz, president and chief operations officer of Three Bears Alaska Inc., believes any hype about Costco coming to the Valley is just that.

“I guarantee we would know before anybody else,” Weisz said.

Three Bears has what Weisz called a gentlemen’s agreement with Costco that the store will notify Three Bears if it plans to move into the Valley, Weisz said. The agreement is in place so if Costco does decide the Valley is ready for its store, Three Bears, a local chain of bulk grocery stores, will have time to adjust for the change.

“If they’re going to make a decision to come into an area, they’re going to let us know about it,” Weisz said.

Representatives with Costco are keeping quiet either way.

Therese Wontorek with Costco’s Real Estate Division said officials with the chain are asked to respond to press inquiries with a prepared statement from Costco Chairman and Cofounder Jeff Brotman.

“Our corporate policy is to not comment on specific markets,” Wontorek said.

Bob Ripley, warehouse manager at the Costco warehouse on DeBarr Road in Anchorage, said he hasn’t heard anything through Costco that the Valley is being considered for a store.

If Costco were to open a store in Wasilla, it would be the next in a string of national big-box chains moving to the area. Target is the most recent national chain to move to the Valley at the intersection of the Parks and Palmer-Wasilla highways. That store is projected to open in October.

It would also come nearly three years after Wasilla Mayor Dianne M. Keller wrote to Costco encouraging the company to build in the Mat-Su Valley. In a 2005 letter, Keller says that although core-area residents may not sustain the store financially, shoppers from the rural areas of the Mat-Su Borough looking to avoid a trip to Anchorage would help the store.

“Besides our local population, people come up from Valdez and other outlying areas to do their shopping and sometimes want to avoid going to Anchorage,” Keller wrote in the letter.

Weisz echoed Holycross’ assessment, saying he’s been aware of Costco eying the Valley for some time, but hasn’t made a definitive commitment.

“Their real estate folks are out just kicking tires,” Weisz said.

Contact Michael Rovito at michael.rovito@frontiersman.com or 352-2252.