Nov. 14 – Spokane-area shoppers who buy in bulk apparently won’t get a new option in Liberty Lake.
A third-party company, which signed a purchase agreement for a large parcel of land in Liberty Lake for what was reportedly a new Costco location, recently pulled out of the deal, meaning the retail giant won’t be expanding in the area at any point . soon.
“Right now, it’s not moving forward,” said Doug Yost, vice president of development and acquisitions for Cowles Real Estate Company, which owns Centennial Properties.
Centennial owns the approximately 80-acre site south of Interstate 90. It is located north of East Country Vista Drive and west of North Kramer Parkway and just northeast of Ridgeline High School.
Yost said he could not identify the retailer as Costco, consistent with the third-party company, but plans submitted to Liberty Lake called for a 167,000-square-foot building and 24 gas stations, nearly the same size as the Costco. built in 2018 at 12020 N. Newport Highway.
The outside company had sought a zoning variance that would have expanded the gas stations, but it was rejected by Liberty Lake planners.
“I don’t think that was the deciding factor in them not moving forward,” Yost said. “It didn’t help.”
Lance Beck, president and CEO of the Greater Spokane Valley Chamber of Commerce, said this site would work great for an anchor retailer that could have generated enough sales tax revenue for Liberty Lake to meet some ongoing needs.
“It is disappointing to hear that the retailer is withdrawing from the process at this time,” Beck said. “I think I remain hopeful on some level” that the company could come back to the table. “It’s still the right place for growth in this region.”
Steve Daines, designated broker for Daines Capital, has marketed property adjacent to the Centennial site and said it remains highly sought after for development.
“It was a surprise to me,” Daines said of Costco’s decision. “It’s a shame Costco won’t anchor it, but other people will come in and scoop up bits of it. Unless (Centennial Properties officials) want to hold out for a big-box retailer, there are a lot of smaller groups that are willing’ to pick that up.”
Yost confirmed Daines’ assessment of conversations with other potential buyers. Yost works for Cowles Real Estate, a subsidiary of Cowles Co., owner of The Spokesman-Review.
“I’ve already gotten a lot of interest,” Yost said. “There was also a lot of interest when it was under contract. It’s a great area. Once we develop it, it will be a really nice feature for that area.”
While he was not part of the discussions or the decision to withdraw, Yost said the price of the development appeared to play a role.
“I think the main reason was that construction costs in Washington state have skyrocketed. That, combined with the tax base and trying to make everything work, created a situation where costs were increasing,” he said. “That made them reevaluate.”
The contract for the land was terminated at the end of October. When asked if he believed the company was looking for another location for a Costco elsewhere, Yost said he didn’t think so.
“It was more of taking a step back and reevaluating,” he said.
Beck, the chamber’s CEO, said he hopes this means the door remains open for the third company to come back to the table.
“You’re never completely gone with a development until the building is finished and the doors are open,” he said, “and you’re never completely gone until something else is built.”
Beck noted that the property remains one of the few large, undeveloped parcels along the Interstate 90 corridor.
The Costco “would have been a huge win and an incredible project for the Liberty Lake community,” Beck said. “You always want real estate to be used in the highest and best way. I have every confidence that their team will come up with the best fit.”
Costco representatives also reportedly looked at properties in Post Falls without closing a deal.
“There is no perfect surface on the other side of the border, so we remain an attractive option for them,” Beck said. “I don’t think we’ve heard the last of what’s going to happen” at the Liberty Lake location.
