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Loveland Council to Vote on $8.7M Costco Incentive

  //business-finance.news-articles.net/content/202 .. nd-council-to-vote-on-8-7m-costco-incentive.html
  Published in Business and Finance on Wednesday, February 18th 2026 at 5:36 GMT by Fort Collins Coloradoan
      Locales: Colorado, UNITED STATES

LOVELAND, Colo. - February 18, 2026 - The Loveland City Council is poised to make a pivotal decision tonight regarding a proposed economic development agreement that could bring a highly sought-after Costco Wholesale Corporation store to the city. The meeting, scheduled for 6:00 PM at City Hall, centers on a $8.7 million incentive package designed to facilitate the construction and operation of a new Costco warehouse retail location.

The debate surrounding the potential arrival of Costco has been brewing for months, with city officials and the retailer engaged in lengthy negotiations. While Costco has expressed strong interest in establishing a presence in Loveland, a key hurdle has been the readiness of the proposed 42-acre development site. The land, currently undeveloped, requires substantial infrastructure improvements before it can accommodate a large-scale retail operation like Costco.

Mayor Dave Clark hailed the potential deal as a "really big deal" for Loveland, emphasizing the anticipated economic benefits. These include the creation of hundreds of jobs - both during construction and in ongoing store operations - and a significant boost to the city's sales tax revenue. Furthermore, experts predict a ripple effect, stimulating further commercial development in the surrounding area, potentially attracting other retailers and businesses. This could revitalize certain sectors of the local economy and broaden consumer choices for residents.

The proposed incentive package is multifaceted. Approximately $8.7 million will be allocated to critical site preparation, covering roughly half of the estimated $17.4 million total cost. This includes crucial upgrades to existing road infrastructure to handle increased traffic flow, expansion and reinforcement of water and sewer lines to meet Costco's demands, and other necessary modifications to the land itself.

A core component of the agreement is a Tax Increment Financing (TIF) arrangement. This mechanism allows the city to reinvest a portion of the property taxes generated by the new Costco store over a 20-year period. The funds collected through the TIF would effectively offset the city's initial investment in site improvements, providing a return on investment for taxpayers. The logic is that the increased tax revenue generated by Costco will eventually outweigh the initial incentive provided.

However, the proposal isn't without its critics. Councilmember Steve Jones has voiced concerns about the size of the incentive package, questioning whether it represents the best possible value for the city. Jones stressed his support for bringing Costco to Loveland but believes a more thorough assessment of the financial implications is warranted. He is particularly wary of setting a precedent that could lead to overly generous incentives for future development projects, potentially eroding the city's financial stability.

"We need to be responsible stewards of taxpayer money," Jones stated in a recent interview. "While Costco is a desirable addition to our community, we can't afford to jeopardize our long-term fiscal health for short-term gains." He advocates for a rigorous cost-benefit analysis to ensure the incentive package aligns with the city's overall economic development strategy.

The public hearing tonight will provide a vital platform for Loveland residents to voice their opinions on the proposed deal. City officials are anticipating a robust turnout, with passionate arguments likely from both proponents and opponents of the incentive package. Concerns beyond the financial aspects are also expected, including potential traffic congestion, environmental impacts, and the effects on existing local businesses.

This isn't the first time Loveland has considered large-scale economic incentives. Previous attempts to attract major employers have met with varying degrees of success, highlighting the complexities of balancing economic development with responsible fiscal management. The outcome of tonight's vote will not only determine the future of this specific project but also shape the city's approach to attracting future investment. The City Council's decision will be closely watched by neighboring communities also vying for economic growth and development.