A multi-million-dollar land swap between the City of Waterloo and a developer may pave the way for the city’s first Costco store.
Commercial developer Rice Commercial Group wants to build a plaza including a Costco, a gas bar and possibly other businesses on a piece of land on Erb Street, west of Ira Needles Boulevard near the Waterloo Regional Landfill.
The problem facing Rice is that part of its land is zoned as “employment lands” – a classification that doesn’t include retail.
Meanwhile, the City of Waterloo owns neighbouring employment lands, as well as commercially-zoned land adjoining Rice’s property.
The solution the two have worked out is a land swap, which would see the two organizations exchange parts of their properties.
“We both have needs that we can meet through working together,” Coun. Karen Scian tells CTV News.
As the city’s land is worth more, Rice would pay it approximately $1.9 million as part of the deal.
The city would still have to pay to develop its new land. Factoring in costs for sewers, a future road and other expenses, Waterloo would have a net cost of $740,000 – but city officials say they would eventually gain $300,000 per year in new tax assessments.
Despite the gains in tax revenue and employment, Scian says she’s concerned about the project due to its potential traffic implications.
“I haven’t seen any action on that piece of the file,” says Scian.
“Anyone who lives on the west side, like I do, will tell you that traffic is our number-one concern.”
The land swap is expected to be discussed at a Monday night meeting of a committee of Waterloo council, with council approval also a necessary step before completion.
The Costco plaza is expected to be up for approval later this year, following the completion of the traffic study.
