Costco deal awaits OK

The details of Carson City's deal with Costco are in place and awaiting supervisor approval.

Costco plans to buy 16.19 acres of land from the city for just over $3.7 million, numbers that were previously estimated at 15 acres and $3.2 million.

The city would put about $600,000 of the money from the sale into improvements widening Clear Creak Road, adding a stop light at the intersection of Clear Creek and Highway 395 and extending sewer and water to the site.

The city would pay for 60 percent of the estimated $1 million worth of improvements because land for the proposed Costco warehouse occupies only 40 percent of the area that the improvements would serve, City Manager John Berkich said. The city would also pay for all closing escrow costs.

Users of the city Fairgrounds and Fuji Park have asked that money from the sale be used for improvements at the park.

Berkich said he expects to have a permit to use 2.8 acres of U.S. Forest Service land by May 1. Berkich said the Forest Service has received several comments for and against the use of land by Costco.

Costco would still like to use the site for storm drainage improvements and parking, although the agreement notes Costco will build with or without the extra acreage.

Costco plans to open a 148,000-square-foot warehouse, tire center and six-pump gas station on the site by early October on land located across Clear Creek Road from the city Fairgrounds and Fuji Park.

City supervisors will meet Thursday to potentially end a process that since December has caught the attention of Carson residents.

In December, the city announced it was adding land used for overflow parking at Fuji Park to the city's redevelopment district. The district takes in much of downtown Carson City and is intended to draw business to help revitalize the area.

Nevada redevelopment law allows for the addition of "blighted" properties, or properties with economic potential that are underdeveloped or underused. Carson City added the parcel near Fuji Park under a determination that the site was blighted.

The move allowed the city to deal with one entity rather than go through a public bid process to sell the land.

Supervisors are also set to decide on a resolution allowing the city to pay for the water and sewer improvements and Clear Creek Road improvements. The resolution says that the improvements "will increase the value of the surrounding property and allow Costco to be built, ending the blighted condition" of the property. However, that doesn't imply that the city can't add other land in the area to the redevelopment district in the future.

"It's something that could be looked into, but the finding of blight really went just to this parcel," Berkich said.

Mayor Ray Masayko consistently has voted no on issues relating to Costco because he thought calling the vacant city-owned parcel blighted wasn't in tune with the spirit of redevelopment law. He has made it clear, though, that he supports bringing the store and its potential $1.2 million in sales tax to the city.

Still pending is an appeal against a Carson City Planning Commission decision to allow Costco to build on the site.

Eugene and Judy Lepire, owners of Comstock Country RV Resort, appealed the planning commission's decision. The Lepires share a property line with the Costco site, and the proposed building is along the same edge as the RV park. The Lepires said delivery trucks will cause excess noise and requested that the trucks come only between 8 a.m. and 8 p.m. Supervisors postponed a decision the issue until Thursday.

If the appeal is dropped and a negotiated agreement between the city and the Lepires is accepted, the city will pay for $207,300 in improvements to the RV Park and Clear Creek Road.

Berkich said he is waiting to hear from Costco on the one issue that could end the appeal.

If you go:

What: Carson City Board of Supervisors special meeting

When: Thursday, 8:30 a.m.

Where: the Community Center's Sierra Room, 851 E. William St.