Costco considered building second Regina store on Sask. controlled GTH land

WATCH: Costco considered building its second Regina store on Sask. controlled GTH land. Wayne Mantyka reports.

The City of Regina says it was willing to pay a $6.7 million incentive to have a second Costco built in the Westerra neighbourhood after learning the wholesale giant was considering a location at the provincially controlled Global Transportation Hub (GTH).

In 2024 Costco announced its plans to build a second location in Regina in Westerra, then discussions arose about the GTH where developmental costs are lower. This week however, city council approved the $6.7 million incentive for Costco to build in Westerra, where the city would earn more tax revenue.

“I won’t speak to the feeling of it. I think what we had to look at is this is the deal that had to be made in order to secure Costco to come to the city,” Mayor Chad Bachynski said.

Both Westerra and the GTH are within city limits, but the province controls the GTH and collects property taxes. The province shares 30 per cent of that tax revenue with the City of Regina while the GTH covers ongoing expenses.

The Opposition NDP questioned how the two levels of government essentially ended up in a competition.

“To have the Sask. Party government, the GTH trying to outbid the city, one level of government trying to compete and outbid another level of government is really concerning,” NDP MLA Jared Clarke said.

• Download the CTV News app for Regina related breaking news alerts on your mobile device

However, the GTH says it was Costco that approached them.

“Costco does locate in logistics parks and in industrial parks across North America so it is unfortunate that we are viewed as competing with them, (City of Regina) but Costco is a private business and they can choose to locate where, what makes sense for their business,” GTH president Daniel Hersche said.

The GTH said it normally would not entertain a land sale to retailers but added that Costco is a wholesale warehouse. The City of Regina expects to recoup the $6.7 million incentive within seven years through commercial tax revenue.