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Costco Incentive Approved: $26.5 Million Deal for Loveland

  //business-finance.news-articles.net/content/202 .. ive-approved-26-5-million-deal-for-loveland.html
  Published in Business and Finance on Tuesday, February 17th 2026 at 0:02 GMT by The Denver Post
      Locales: Colorado, UNITED STATES

LOVELAND, Colorado - February 17th, 2026 - The Loveland City Council's unanimous approval of a $26.5 million incentive package for Costco Wholesale Corporation on Monday night marks a significant milestone in the ongoing development of the Centerra master-planned community and signals continued economic growth for the city and surrounding Northern Colorado region. The agreement, a 15-year phased plan, is designed to facilitate the construction of a new Costco wholesale club and accompanying retail center, further solidifying Centerra as a premier shopping and lifestyle destination.

While the incentive package represents a substantial investment by the city, officials project a considerable return through increased property tax revenue, job creation, and expanded retail options for residents. Mayor Jack Morman hailed the decision as "a huge win" for Loveland, emphasizing the long-term benefits the project is expected to deliver. The city anticipates Costco will contribute approximately $3.5 million annually in property taxes once fully operational, a substantial increase in local revenue.

The agreement isn't simply a handout; it's structured around performance-based incentives. Costco is obligated to commence construction within 18 months of approval - meaning work is anticipated to begin around August 2027 - and fully open the business within 30 months, around February 2028. This timeline demonstrates a firm commitment from Costco and provides a clear expectation for the community. Failure to meet these deadlines could jeopardize portions of the incentive package.

A key component of the deal is a commitment to significant infrastructure improvements, totaling around $18.5 million. These enhancements are crucial for managing the anticipated increase in traffic and ensuring the smooth flow of commerce. Specifically, the plan includes widening of 29th Street, a major thoroughfare serving the Centerra area, and the installation of updated traffic signals to alleviate congestion. The city will also cover the costs of necessary utility upgrades to support the new facility. These improvements aren't solely beneficial to Costco; they will improve traffic flow and quality of life for all residents accessing Centerra and the surrounding areas.

Beyond the financial benefits and infrastructure upgrades, the Costco project is projected to create at least 425 jobs. This includes 250 full-time positions and 175 part-time roles, offering valuable employment opportunities for Loveland residents. In a competitive job market, the addition of these positions is particularly noteworthy. The jobs are expected to span a range of skill levels and provide opportunities for career advancement within the company.

Centerra, already a vibrant hub for retail, dining, and entertainment, boasts a diverse mix of businesses including numerous national chains, local boutiques, and a variety of restaurants. The addition of Costco is expected to further enhance the area's appeal, drawing shoppers from Loveland, Fort Collins, Greeley, and beyond. Experts predict the Costco will serve as an "anchor tenant," attracting additional businesses and increasing foot traffic throughout the Centerra complex. This synergistic effect could lead to further development and investment in the area.

However, the project hasn't been without some community discussion. Concerns have been raised regarding potential traffic impacts during construction and the long-term effect on smaller, local businesses. The City Council addressed these concerns by emphasizing the infrastructure improvements and committing to ongoing monitoring of traffic patterns post-construction. Additionally, city officials are exploring initiatives to support local businesses and ensure they remain competitive.

Looking ahead, the Costco development is viewed as a catalyst for continued growth and investment in Loveland. The city is actively pursuing other development opportunities to diversify its economy and enhance the quality of life for its residents. The successful negotiation of this incentive package demonstrates Loveland's proactive approach to attracting businesses and fostering a thriving economic environment. The next steps involve finalizing the legal agreements and beginning the permitting process, setting the stage for a groundbreaking ceremony anticipated in late 2027.