A proposed Costco Warehouse Store in Otsego has received preliminary approval from the City of Otsego, clearing initial hurdles on its way to becoming a reality in 2025-2026.
The Otsego Planning Commission held its first hearings on the preliminary plat of the store, to be located near the intersection of County Road 137 (60th Street Notheast) and MacIver Avenue Northeast on the border of Otsego and Albertville, the first week of February.
The Planning Commission voted 6-0 to move forward with the project, citing its congruence with the Otsego City Strategic Plan. The 140,000 square-foot store, which would employ dozens of management and staff across its retail and auto services, also received recommendation from City of Otsego staff members, with conditions that infrastructure and other improvements needed in the area just south of the Albertville compost site would be handled by county, city and private developers in the weeks and months leading up to the store’s construction.
Included will be necessary changes to County 137 as it runs south of the Costco property, which is now a field. The Wright County Highway Department does have that stretch of road targeted for several improvements, including roundabouts at the frontage road – 62nd Street Northeast – that runs northwest past a commercial area (including Stone Countertop) to the School/Towne Lakes developments area and another roundabout at County 137 and McIver Avenue. Improvements would also be made at the intersection with Lymon Avenue, the road that leads to Emma’s and the new Just for Kix/Teevana complex that was formerly Villas Restaurant.
The public hearing at the Planning Commission meeting saw dozens of local residents attend – most with concerns about traffic along McIver Avenue, a major service road for townhomes and single family homes that would be to the east. Costco and the city also believe traffic control would be needed at Marlowe Avenue, where the entrance to the parking lot would be located to the southwest, and entrance to the townhome development is to the northeast.
“It’s too much,” one resident said. “If it was too much for a truck stop, it’s too much for a super store like Costco. I fail to see the difference.”
Indeed, the Otsego City Council rejected a truck stop project at the location prior to the pandemic. At that time, the major concern was overnight parking by rigs that run diesel fuel to keep cabs warm for sleepers. Other concerns included truck traffic and safety.
This project differs, however, on many levels, city planners pointed out. Costco’s limited hours of operation – it closes to all customers before 9 p.m. and is closed at 7 p.m. on weekends – and ample job offerings make it more attractive to the community. It operates more like a retail center, such as the Albertville Premium Outlets, less than a mile to the northwest.
Costco employs 250-350 people per store, and has more than 316,000 employees. More than 3 million U.S. households and businesses have Costco memberships.
“I like the idea,” another resident stated while getting a purchase at Emma’s. “I had a Costco membership for a while, but found it too hard to get there. Maple Grove’s shopping area there is busy, and Coon Rapids isn’t much better. This one would be really accessible and close. I think it would be great for the area. It could draw more business.”
Even with preliminary plans approved, Costco will need to present final plans to the planning commission and city council, setting off another round of official meetings and public hearings. That process will take several weeks, with hearings expected later this spring.
File: View the entire preliminary plans for the Otsego Costco
NWCT will stay on top of this developing project.