Des Plaines approves $17M incentive deal for Costco development

The real estate developers bringing a Costco store and gas station to Des Plaines should get financial incentives from the city worth more than $17 million for putting the deal together, the city council decided Monday.

A 137,327-square-foot Costco Business Center and a 24-pump gas station are planned for 14 acres at 2200 and 2400 E. Devon Ave. The site is in the 6th Ward, in an office park just west of Interstate 294.

Preparing the land for construction is expected to cost Evergreen Park-based developer RSA Properties II more than $30 million, city documents indicate. That will include filling in part of a 16-acre retention pond to create more land for a parking lot.

Costco intends to buy the site and construct the store and gas station once the land is ready.

During remarks Monday, developer Matt Ruh said his team is “incredibly excited” about the site’s potential but insisted the city’s support “is essential to making this project viable.”

“It is a unique property currently hindered by an outdated, unsustainable office park layout and further significantly constrained by the centralized pond,” Ruh said.

After more discussion, the city council unanimously agreed to declare the property blighted and to support the developers’ request to the Cook County Board to reduce the property’s assessment rate for 12 years. That could cut the property's tax bills by about $7.5 million over the 12-year period.

The council also agreed to rebate up to $9.75 million in sales tax revenue and interest to RSA Properties II over 10 years.

Finally, the council agreed to give the company limited use of city flood-prevention equipment to drain part of the pond. Aquatic life shouldn’t be endangered, said Jeff Rogers, the city’s community and economic development director.

Second Ward Alderman Colt Moylan was among those who spoke in favor of the financial incentives. He called the Costco project “a big win for the area.”

“This is not just a good deal — it’s a great deal for Des Plaines,” Moylan said.

Noting neighborhood opposition to the gas station plan, 6th Ward Alderman Mark Walsten referred to the project’s “ups and downs” but supported the deal in the end.

“I hope the whole project moves forward and the entire area is developed,” Walston said.

The Costco operation is projected to be ready for customers late this year, documents indicate.