The fast-developing town of Parker is negotiating a tax-incentive package with Costco.
The agreement could allow developers to recoup some of its building costs by receiving a portion of the sales tax for either seven years or up to $8 million, whichever comes first.
“Should Costco decide to locate in Parker, we believe it could spur much-needed economic development on the north end of our community, as well as provide a great additional service for our citizens,” said town spokeswoman Elise Penington.
Costco was one of the desired retailers town residents named in a 2005 survey.
The store would be part of Crown Point along E-470 and Parker Road. The 220-acre development includes housing, restaurants and other retail. According to marketing data, 111,276 people live within 5 miles of the site.
Such incentive packages, once the domain of manufacturers and corporations, have become the norm for retailers as well.
Aurora, for instance, offered a $15 million incentive package for the recent $100 million redevelopment of Aurora Mall into the Town Center at Aurora.
“It’s a race to the bottom,” said Robin Kniech, program director for the Denver-based Front Range Economic Strategy Center, which has been critical of tax incentives for most big-box stores. Costco, however, provides health benefits and living wages to its employees, unlike many retailers, she said.
“We, as taxpayers, already subsidize these businesses when they fail to provide health care benefits or pay their employees enough to cover their basic living expenses,” Kniech said. “We would certainly support an economic incentive for an employer like Costco that is more of an asset than a liability for their community.”
