Costco seems a ‘go’

WASILLA — After months of rumors and speculation, wholesale giant Costco appears to be serious about building in Wasilla.

City Planner Jim Holycross said Costco representatives recently filed an extensive application with the city that jump-starts the process leading to construction.

“The ball has started to roll,” Holycross said Friday.

Rumors asserting Costco was coming to Wasilla began to gain traction near the end of summer when a representative from Anchorage-based Lounsbury and Associates, a project management company contracted by Meritage Development LLC, told Wasilla City Council the store planned to build in the city.

Meritage is the Alaska company that played a large role in a corruption investigation into former Wasilla mayor Dianne M. Keller, who was accused of working to benefit the private developer at the cost of private businesses and landowners.

Keller was eventually asked to resign in a 4-1 vote by city council, but refused to honor the request.

Based in Issaquah, Wash., Costco sells goods in bulk wholesale in a warehouse setting. A membership is required to enter the store, but members are promised better deals over other stores.

Plans submitted to the city also show a gas station to be included with the Costco store. Costco often heavily discounts fuel prices for members.

If Costco receives final approval, the store will be build in the yet-to-be-constructed Creekside Town Square just off the Parks Highway near Target. To get that approval, the application will go to the city’s Planning Commission Nov. 25, at which time residents will be able to express their concerns or approval for the project.

Holycross said property owners within 1,200 feet of the Costco site will soon be notified of the plan, giving them ample opportunity to prepare comments for the Planning Commission.

He’s also notified other government agencies and the Friends of Mat-Su organization, which, according to its mission statement, offers tools and support to develop a healthy and vibrant community.

Request for comments from Friends of Mat-Su were not returned by press time. Verne Rupright, Wasilla’s new mayor, was tied up in meetings and unavailable for comment Friday.

If Costco does open it will provide a challenge to local wholesaler Three Bears Alaska, a mainstay for many Alaskans since 1980.

Three Bears President and COO David Weisz said if Costco opens nearby, his company will simply adapt.

“We would have to change some of our format and product lines,” he said.

Three Bears purchases some of its products from Costco, but Weisz said not all the store’s products come from the retail giant, and he doesn’t expect a Costco opening to be detrimental to Three Bears’ operation.

“We’re not going anywhere,” Weisz said. “We love the Valley and we’re going to stay in the Valley.”

The area around Costco will likely change as well, should the store be approved by the Planning Commission. Holycross said recently passed road bonds in the Valley will pay for an extension of Hermon Road, which will, eventually, run from the Parks Highway to the Palmer-Wasilla Highway.

“It’s needed,” Holycross said of the extension. “It will take a lot of pressure off that intersection.”

The city will also notify the Alaska Department of Transportation, which will weigh in on traffic impacts from Costco. The section of Parks Highway where Costco may be built is one of the most congested stretches in the city and critics call it among the most dangerous.

There has yet to be a timeline produced by Costco as to the store’s completion, but a representative with Lounsbury and Associates said he expected Costco to fast-track the project as soon as approval is granted.

Judging by the company’s application, Holycross said Costco seems very serious about getting underway with the new store as soon as possible.

“It’s huge,” he said of the application. “It’s probably the best one I’ve received in my office since I’ve been here.”

The Planning Commission is expected to meet at 7 p.m. Nov. 25 in Wasilla City Hall Council Chambers. Residents can also contact the city planner’s office at 373-9050.

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