Proposed Location For New Minnesota Costco Arouses Controversy

Usually, when a Costco announces plans to build a new members-only warehouse store within a community, the news is met with excitement and there is much anticipation as to when the store will be built and open to the public.

Duluthians witnessed that firsthand when Costco finally opened its doors in Duluth on October 28, 2021. However, news of a new Costco isn't always embraced by an entire community, as we're finding out now in the location where Costco recently announced plans to build a new store.

According to the the Minneapolis/St. Paul Business Journal and Bring MeThe News, the city of Otsego received an application earlier this month related to the proposed development, which would be built on a roughly 25-acre property at the northwest corner of Maciver Avenue Northeast and 60th Street Northeast.

In the letter to city officials, a Costco representative reportedly confirmed the company has entered into a purchase agreement to acquire the land and intends to develop a new members-only warehouse store and free-standing gas station.

The property, located just off Interstate 94, which used to operate as a tree nursery for Midwest Landscapes, has long been viewed as a prime spot for a big-box retailer.

Since Costco's plans went public, FOX 9 reports that while there are supporters within the community, not everyone in Otsego is happy about their proposed new location. They note that some residents in a townhome development across the street are worried about the additional traffic and congestion accompanying a new Costco.

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Terry Doerfler, who also lives nearby, also has traffic concerns and is concerned that the additional traffic could bring crime to the neighborhood.

"This is a largely residential area. There's residential all the way down, and I just don't want to bring all the commercial big boxes yet if I can help it to the area," said Doerfler.

In their defense, Wright County city leaders reportedly are already planning to make improvements to 60th Street Northeast next year which would accommodate traffic generated by a development the size of Costco, regardless of whether Costco is ultimately the retailer that builds on the property.

You can watch FOX 9's complete report below.

The next step to allow Costco's plans to move forward will happen on Monday, February 5, when the rezoning and subdivision requests related to the project are tentatively scheduled to be reviewed by the Otsego Planning Commission.

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If the requests are approved, subsequent applications and approvals will be needed in the future for the development to be finalized, such as conditional use permits and building plans.

Costco has not provided any information on when their new Otsego store would open, assuming everything is approved. They currently operate 13 stores in Minnesota, with a 14th location expected to open in Chaska this spring.

Costo memberships start at $60 annually the personal Gold Star and Business Membership. For $120 per year, members can upgrade to an Executive Membership and receive an annual 2% Reward.