Rock Hill, South Carolina, December 4, 2025
The York County Council in South Carolina has approved a $240 million tax incentive deal for a new Costco distribution center in Rock Hill. The center will span 168 acres and is expected to create approximately 165 jobs, serving 20 Costco warehouses in the Carolinas and Georgia. The council’s decision, made after much debate, includes a $25 million credit to offset infrastructure costs. Community concerns regarding traffic and environmental impacts are being addressed as the project moves forward with an anticipated opening in 2027.
Rock Hill, South Carolina
York County Council Approves $240 Million Costco Distribution Center
The York County Council in South Carolina has approved a tax incentive deal to bring a $240 million Costco distribution center to Rock Hill, near Charlotte. The decision was made during the council’s third and final reading of the ordinance, following extensive debate. The council employed a legislative maneuver to fund the tax deal, raising questions about whether Costco will accept the offer, as the company had set a deadline of December 11 for the county to approve the incentive plans.
Project Details
The proposed distribution center is slated to open in 2027 at the intersection of Interstate 77 and Porter Road. The facility will cover 168 acres and is expected to serve 20 Costco regional warehouse stores in the Carolinas and Georgia, creating approximately 165 jobs. Construction will occur in two phases: the first phase involves building a 541,000-square-foot distribution center, which will later be expanded to nearly 900,000 square feet. Panattoni Development Co. is anticipated to develop the site.
Incentive Package and Funding Concerns
To attract Costco, the York County Council debated various incentive packages, ultimately agreeing on a $25 million credit to offset more than half of the reported $44 million Costco would pay for public infrastructure improvements. Costco had initially sought a $30 million credit. The council’s funding approach involves requiring the city of Rock Hill and the Rock Hill School District to return millions in tax credits to the county, which has sparked backlash and confusion. Some council members shifted more of the tax credit burden onto the city and away from the school district.
Background Context
The development deal with Costco, previously codenamed “Project Sample,” has been under discussion for several months. The council’s recent decision continues the saga of negotiations, with the final outcome contingent on Costco’s acceptance of the revised incentive package.
Potential Traffic and Environmental Concerns
Local residents have raised concerns about potential traffic and environmental impacts associated with the proposed Costco facility. These issues are being considered as part of the ongoing discussions and evaluations related to the development.
Related Developments in the Charlotte Area
In addition to the Costco project, other significant developments are underway in the Charlotte region. Chick-fil-A Supply is investing $58.3 million to open a new distribution center in Kannapolis, expected to create over 85 jobs. The 120,000-square-foot center will serve around 100 restaurants in the Charlotte area and is slated to open in the third quarter of 2024.
Furthermore, the Exchange at Indian Land, a large-scale mixed-use project, is advancing with plans for 400 apartments, 320 townhomes, and 115,000 square feet of retail space. The project includes a Costco store as an anchor tenant, with construction expected to begin in September.
Costco’s Presence in the Region
Costco currently operates several locations in the Carolinas, including stores in Columbia, Myrtle Beach, Greenville, Spartanburg, Charleston, and Mount Pleasant. The proposed distribution center in Rock Hill would serve as a central hub for these regional warehouse stores.
Conclusion
The approval of the $240 million Costco distribution center in Rock Hill marks a significant development in the Charlotte metropolitan area. While the project promises economic benefits and job creation, it also brings to the forefront discussions about funding mechanisms and potential community impacts. The finalization of the deal depends on Costco’s acceptance of the revised incentive package and the resolution of any outstanding concerns.
Frequently Asked Questions (FAQ)
What is the proposed Costco distribution center in Rock Hill?
The York County Council in South Carolina has approved a tax incentive deal to bring a $240 million Costco distribution center to Rock Hill, near Charlotte. The facility is expected to open in 2027 and will serve 20 Costco regional warehouse stores in the Carolinas and Georgia, creating approximately 165 jobs.
What are the details of the incentive package offered to Costco?
The York County Council agreed on a $25 million credit to offset more than half of the reported $44 million Costco would pay for public infrastructure improvements. Costco had initially sought a $30 million credit. The council’s funding approach involves requiring the city of Rock Hill and the Rock Hill School District to return millions in tax credits to the county, which has sparked backlash and confusion.
What are the potential concerns associated with the Costco facility?
Local residents have raised concerns about potential traffic and environmental impacts associated with the proposed Costco facility. These issues are being considered as part of the ongoing discussions and evaluations related to the development.
What other developments are occurring in the Charlotte area?
In addition to the Costco project, Chick-fil-A Supply is investing $58.3 million to open a new distribution center in Kannapolis, expected to create over 85 jobs. The 120,000-square-foot center will serve around 100 restaurants in the Charlotte area and is slated to open in the third quarter of 2024.
Where does Costco currently operate in the Carolinas?
Costco currently operates several locations in the Carolinas, including stores in Columbia, Myrtle Beach, Greenville, Spartanburg, Charleston, and Mount Pleasant. The proposed distribution center in Rock Hill would serve as a central hub for these regional warehouse stores.
Key Features of the Costco Distribution Center Project
| Feature | Details |
|---|---|
| Investment Amount | $240 million |
| Location | Rock Hill, South Carolina, near Charlotte |
| Opening Year | 2027 |
| Facility Size | 168 acres, with initial construction of 541,000 square feet, expandable to nearly 900,000 square feet |
| Job Creation | Approximately 165 jobs |
| Incentive Package | $25 million credit to offset infrastructure costs |
| Community Concerns | Potential traffic and environmental impacts |
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