Wasilla planner on Costco: ‘I’ll believe it when I see it’

WASILLA — Costco representatives at the company’s Washington corporate headquarters aren’t verifying or debunking a claim the warehouse membership retailer will open a store in Wasilla.

The announcement of Costco’s imminent arrival in the Mat-Su Valley came Monday when James Sawhill, president of Anchorage-based Lounsbury and Associates, told Wasilla City Council the bulk retail giant is definitely coming to town.

Lounsbury and Associates is under contract with Meritage Development LLC., the developer of Creekside Town Square along the Parks Highway, to handle permitting and planning, Sawhill said. During a public comment period at Monday’s council meeting, Sawhill said he was authorized that day to announce Costco’s plans for a Valley store. Later that evening, Sawhill said the store is scheduled to open sometime in fall 2009.

Numerous calls to Costco’s corporate real estate office this week to confirm Sawhill’s announcement were met with a standard reply that Costco does not comment on specific markets. Therese Wontorek, a spokesperson for Costco’s Real Estate Division, said only Costco CEO Jeff Brotman can speak directly to the media. As of press time Thursday, Brotman had not returned messages seeking comment.

Speculation about whether Costco is really coming to Wasilla or if Monday’s announcement was wishful thinking on behalf of a developer has buzzed around the Valley since the council meeting.

For Wasilla City Planner Jim Holycross, talk is cheap.

“I’ll believe it when I see it, of course,” Holycross said Thursday.

The city has had a pre-conditional use permit application meeting with Costco, but Costco has yet to file an official application with the city, Holycross said. A conditional use permit is necessary to specify Costco’s use of a building should the company want to build here.

“They’ve asked what it takes to apply,” Holycross said. “That’s part of their due diligence.”

Even with Sawhill’s announcement that Costco is coming — something Holycross called “letting the cat out of the bag” — the city isn’t convinced of Costco’s future Valley plans until the company takes the next step.

“Until we get an application and we actually see the thing get built, that’s when I’ll believe it,” Holycross said.

Also skeptical about a Valley Costco is David Weisz, president of Three Bears Alaska.

Weisz has said he and Costco have what he calls a gentlemen’s agreement that if Costco ever planned a move to the Valley he would be notified well ahead of time. Costco is the main supplier for Three Bears, which is Costco’s largest customer, Weisz said.

The developer of the Creekside plaza, Meritage Development LLC, is also neither confirming nor denying the Costco claims. Asked last week whether Costco is coming, Meritage commercial broker Jim Wood would only offer a number for Costco, saying Meritage is not commenting about any potential deals with the company.

A message left Thursday with Wood to see if the company would verify Sawhill’s claim was not returned by press time.

If Costco does open a Wasilla store it will be the next in a line of big-box retailers and national chain businesses in Wasilla. Along with restaurants like Chili’s and a Target store, nationwide retailers have shown an interest in the town over the past few years.

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