Midland is Getting a Costco

MIDLAND, TX — Costco is set to open a new 174,000-square-foot facility in West Midland, a move that city leaders and the Midland Development Corporation (MDC) anticipate will significantly enhance the local economy.

The development, which represents a $50 million capital improvement, will create 100 full-time equivalent jobs and is scheduled to begin construction on or before June 1, 2025, with completion expected by August 31, 2026. The location is on the SH 191 corridor. 

The MDC has committed to reimbursing up to $6.5 million for infrastructure and site improvements tied to the project. Reimbursements will be made in three phases: $2.16 million upon the completion of Costco’s construction, another $2.16 million after Costco certifies that 100 new full-time jobs have been created and maintained for one year, and the final $2.16 million once those jobs have been maintained for two years.

In addition to the MDC’s support, the City of Midland has agreed to offer substantial financial incentives to the retail giant. The city will provide a 50% rebate on its portion of real and personal property tax revenue for 20 years, following the receipt of a certificate of occupancy. Additionally, the city will rebate half of the total local sales and use tax receipts generated for 30 years and will offer a one-time rebate on development and building permit fees.

City and MDC officials have highlighted that Costco was the most requested amenity among residents, with the project expected to keep more local dollars in Midland and reduce the need for residents to shop in surrounding communities.

Construction on the Costco facility is expected to catalyze additional commercial development along the SH 191 corridor.