Costco may build outlet near Valley Fair Mall

WEST VALLEY CITY — City officials say they are excited that one of the largest bulk retailers in the country may arrive in the city's center in time to energize their plans for a new downtown center.

Officials with West Valley City and the Granite School District confirmed Wednesday that Costco is in negotiations to build an outlet directly south of the Valley Fair Mall, where Granger Elementary School currently is located.

"We have a letter of intent with Costco, but we're still working out the details with the school district," said West Valley city manager Wayne Pyle.

Pyle also wanted to make it clear that news of a $2.5 million incentive in the Costco project would go to the Granite School District to help build a new elementary school in a new location. "Costco won't see a dime of this money," Pyle said over concerns that people may think that the city is giving money to Costco, which is not the case.

In fact, city officials say they have worked into the plan several sources of funding to go to the school district. School district officials, however, say the city's overall redevelopment project could end up taking money away from schools.

Pyle said the land at the current school site is worth about $3 million. "We're going to buy that land from the school district, sell that land to Costco, then give the district that money towards the construction of the new school," Pyle said.

An additional $9 million in sales tax revenue is tentatively being considered to go toward the new school.

Granite School District officials say any redevelopment project takes away school funding, so even though they see the benefit of a new Costco and downtown revitalization, they are fundamentally opposed.

"We're clearly opposed to it," said district spokesman Randy Ripplinger. "We cannot see even a good project like that funded on the backs of kids."

Ripplinger said the district estimates that West Valley's overall $15.6 million redevelopment project will cost the school district over $8 million in lost tax revenue over the last 18 years.

City officials argue that in the long run, an improved downtown will eventually benefit local schools with increased tax revenue and more students from families attracted to living in West Valley's new downtown. Pyle said he understands the district's concern over the redevelopment project.

At this point, Pyle said Costco appears very interested in moving into West Valley City but that the deal over Granger Elementary is still in the preliminary stages. If the deal goes through, Costco could be open as early as 2007.

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