Costco in Port St. Lucie? Here are five things to know about the distribution depot

Gianna Montesano and Wicker Perlis, Treasure Coast Newspapers
·3 min read
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PORT ST. LUCIE — A Costco Wholesale Corp. distribution depot is on the drawing boards to be built here. It is to be relocated from West Palm Beach, according to city officials.

The unveiling of the project came Monday as the City Council approved a package of tax breaks for Costco. The nearly 200-acre project — which has been in the works since August — had been referred to with the code name Project Everest.

Here are five things to know about the Costco distribution depot coming to Port St. Lucie.

Where will the Costco distribution center be built?

The Costco distribution depot will be at Southern Grove — a manufacturing, logistics and retail development area alongside Interstate 95 in Port St. Lucie by Interstate 95. Amazon, Cheney Brothers and FedEx already have built facilities there.

Costco's current distribution center is at 5851 45th St. in West Palm Beach, about 42 miles from the Port St. Lucie site.

The West Palm Beach location — which one of Costco's 24 regional distribution depots serving its more than 800 stores — will shutter upon opening of the new location, said Eric Orren, Costco director of real estate.

"We're looking to relocate our West Palm Beach depot to Port St. Lucie because we've maxed out our growth there," Orren said.

Will there be a Costco store in Port St. Lucie?

Only the Costco distribution site has been announced for Port St. Lucie. However, city officials hinted they are "working on some other things" with the company.

"We're trying, very hard, to get a retail establishment here, and hopefully that will happen in the future, but as for right now, it's the depot," Mayor Shannon Martin said.

A Costco warehouse store is under construction in Stuart, targeted to open in spring 2025.

The Stuart complex is being built on 49 acres on Kanner Highway, just south of Martin County High School. The development will include a Costco, an 18-pump gas station, stores, restaurants and 378 apartment units.

How long will it take to build the distribution center?

Construction on the Southern Grove depot is expected to begin in the next six months and take about one year, according to Jennifer Davis, director of the city's Community Redevelopment Agency.

How many jobs will this create?

The Economic Development Council of St. Lucie County projects the facility would create 265 jobs with an average wage of $55,350 plus benefits. Economic impact of construction is estimated at nearly $85 million, while the impact of the new jobs is estimated at about $198 million annually.

How much did the land cost?

The city sold the land Monday for $16.24 million. It was approved by City Council members in their roles as the Government Finance Corp., giving Costco developers about 133 acres of the 192 acres needed for the project.

The city approved an infrastructure credit for Costco of almost $18.7 million, and the company will borrow $11,357,156.98. All that money will go toward infrastructure development. Costco has agreed to pay for a "Road Project," according to its contract with Port St. Lucie.

Wicker Perlis is TCPalm's Watchdog Reporter for St. Lucie County. You can reach him at wicker.perlis@tcpalm.com and 504-331-0516.

Gianna Montesano is TCPalm’s trending reporter. You can contact her at gianna.montesano@tcpalm.com, 772-409-1429, or follow her on X (formerly Twitter) @gonthescene.

This article originally appeared on Treasure Coast Newspapers: Costco distribution depot to replace West Palm Beach facility