Costco is expected to open the firm's sixth East Valley store next fall near Chandler Fashion Center.
The Chandler location marks a coup for the city's economic development leaders, who long ago identified the company as a desirable commercial resident.
"We've been trying to attract them since the early ’90s," said Garrett Newland, Chandler's economic development director.
The 150,000 square-foot store is slated to be built on 14 acres at the southeast corner of Chandler Village Drive South and Galleria Way, south of the mall and Target Greatland, said Jeff Kurtz, Chandler's planning manager.
Company officials have submitted initial plans to the Planning and Zoning Commissionplanning and zoning department. The project must receive the approval of both the Planning and Zoning Commission and the City Council before construction begins, Kurtz said.
If approved, its arrival will create a total of than 3 million square feet of retail space within the commercial area that includes the mall and surrounding power centers, Newland said.
Not only will it create jobs, but sales tax revenue generated from the store is expected to be substantial, Newland said. The membership-based warehouse outlet caters to small businesses and individuals, offering a range of electronics, clothing and grocery items as well as financial, optical and pharmacy services at discounted prices. Membership costs either $45 or $100 annually, depending on the services desired.
The store would join five others in the East Valley, including outlets on Country Club Drive in Gilbert, Elliot Road in Tempe, which has both Costco and Costco Home stores, Power Road in Mesa and Hayden Road in Scottsdale.
The Chandler store will also keep city dollars within the local economy, because "all the Costco shoppers in Chandler have been going to other communities," Newland said.
Costco's direct competitor in the membership-based warehouse industry is Sam's Club, operated by Bentonville, Ark.-based Wal-Mart.